So, today the Milan went to its State Inspection and passed just fine. I now have a Rebuilt Salvage Title which means "roadworthy" and good to go.
Repeat budget:
- $1048 Purchase all-in with fees ($700 winning bid)
- $9 for fasteners
- $76.74 state tax and 1st registration (salvage title in my name)
- $53.50 State Inspection fee
- $17 title fee (now a Rebuilt Title in my name)
- 1,204.24 ready to go.
On this project, aside from just keeping track of dollars I kept track of time. If time is money I wanted to answer the question of how much time does it really take to make this all happen. If it was a flip, would I just find myself working for peanuts?
- 2 hrs to shop and inspect
- The IAA location is about 20 minutes from my house. Just 5 highway exits down the main route. Roughly 40 minutes of travel and 1hr onsite reviewing the 10 cars I might be interested in that week. No time given to searching the website the days before. I'll call it 2 hours total.
- 2 hrs to pick up the car
- Borrow a dolly from a buddy, pick that up and return that (15 min x2 = 30 min)
- 20 min each way = 40 min
- better than 30 minutes for paperwork and waiting for workers to pull the car out of the yard. This time was quick. Could be longer.
- 4 hrs at for the Junkyard
- I live in a small town and do not have a good self-serve JY close by. For this car, self serve was going to be better for getting what I want. The Cleveland Pull-a-Part is 1hr away. The Akron is 1.5 hr. Based on their online inventory the Akron seemed a better choice for this project. 1.5 each way = 3 hr and that seems like a big time investment but for this eample that assured me what I needed would be there. I was also buying the education of taking it apart as a way to learn how to put it together. Also made for a fun Saturday morning but I am trying to look at this all as a time cost.
- 3 hrs to repair/reassemble
- This is a reasonable assumption of the time needed. I tried to back out some "toddler interuptions" and factor off some of the time that was just "tinkering" and looking but not really working on the car.
- 1 hr registration/title/pre-inspection
- In Ohio, I bought a car and recieved a title from IAA that still said State Farm Insurance on it. I have to visit one office to get that title changed over to my name (now I rightfully own a car I can not drive.) Then, I have to visit another office to pay the fee for the State Inspection (53.50) that then gets me a reciept and a reservation code number. I then sit at home, at the computer and choose an inspection date/time from the State website after entering that reservation code number.
- 2 offices and some computer time. Even thought the offices are local, lets still attach an hour to that process.
- 3 hr Inspection
- The inspection office is 1 hour away. They will not hold your spot if you are late so I try to get there 30 minutes early. The appts are in 15 minute incriments but today they were running late.
- 15 hours total
Now place a value to my time.
$20 per hour x 15 = $300
$50 per hour x 15 = $750
$100 per hour x 15 = $1,500
Since my intention is to keep the car I think I have $ 1,204.24 into the purchase and $750 into the labor = $1,954.24
or
$1,204.24 purchase and $1,500 labor = $2,704.24
Was it worth it? Could I have just bought the same car for under $2k? Under $3k? I don't think so. But, I bet I could have bought it for $5k.
Another way to look at it... If I could manage to sell the car for $5k I would have made $3,795.76 more than I bought the car for. That profit of $3,795.76 made in 15 hours would be $253.02 per hour.
But... I might need to factor in the time selling the car and more prep to make it sell well. I washed the car for myself but if I was selling it I would need to factor those cleaning hours too. Lets also not forget the time to write the ad, answer the questions and stay home to meet buyers (even if they did not show.)
At a conservative 4 hours I could have $200 or $400 into sale costs. Maybe double that if it sold slowly.
$3,795.76 divided by 15 + 4 hrs = 19 hrs = $199.78 per hour. Better than average I suppose.
Other sale price examples:
Sell for $4,000 - $1204.24 = $2,795.76 profit divided by 19 hrs = $147 per hour
Sell for $3,000 - $1204.24 = $1,795.76 profit divided by 19 hours = $94.51 per hour