The #1 reason dealers lose money on salvage? Underestimating recon. Get honest numbers before you bid.
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Enter expected sale price and purchase price to see.
If recon exceeds 40% of your purchase price, most dealers walk away.
Storage fees ($15–35/day), rental car for test drives, second diagnostic when first shop misses something, freight on backordered parts, comebacks on warranty work, and the biggest one — time. Every day a car sits is money tied up.
I bought a "light cosmetic" Civic. Needed a quarter panel, door, two windows, headliner, and seat repair. My $800 estimate became $3,400. I broke even. This tool would have warned me.
These ranges are built from industry labor guides, wholesale parts pricing, and real-world dealer feedback. Your actual costs depend on local labor rates, parts availability, and shop quality. Use the high estimate as your planning number.
DIY saves labor but costs time. Most flippers do light cosmetic work in-house (detail, minor paint) and send mechanical, frame, and glass to shops. Factor in your time — if you're not buying another car because you're wrestling a transmission, you're losing money.
LKQ, Copart Buy Now, RockAuto, and local salvage yards for body parts. For mechanical, weigh reman vs. new. Reman transmissions and engines often come with 3-year warranties and cost 40% less than new OEM.
Diagnostic fees that lead to more problems, freight on large parts, storage at $20/day, title branding delays, state inspections that fail twice, and the cost of capital — money tied up in a car for 60 days instead of 20.
If your total recon exceeds 35–40% of the expected sale price, you're in the danger zone. At 50%, you need a very cheap purchase price or a very high sale price to make it work. Marcus walks away when recon + purchase price = 85% of expected sale.
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