Buy $300 Challenge car.
Buy $500 Parts Car
Pull wheels and drag radials and diff off parts car.
Resell parts car for $500
$500 counts toward $1000 recoup total.
OR,
Buy $300 Challenge Car
Buy $500 Parts Car
Swap parts from parts car to Challenge Car.
Keep entire parts car on budget.
Build parts car as documented zero dollar car for next year?
Budget one works. Budget two doesn't as you haven't documented recoup of $500 towards the parts car.
Could you:
$2000 car A: $500 purchase, FMV Sell $500 parts. Budget $0, $500 recoup used.
$2000 car B: $300 purchase, FMV Purchase $500 parts from Car B. Budget $800.
It relies pretty heavily on FMV which is Legal per the current rules.
In reply to Stampie :
But if retain the parts car and claim the entire parts car on this years budget, there isn't any recoup.
If you say that the whole purchase price of the parts car should be the starting basis of the new car, it should be less the FMV of the parts removed the previous year, right?
$500 less $240 for wheels and $160 for real end and something for the tires.
Otherwise the same parts are being used once and counted twice in the budgets.
Not trying to lawyer. Absolutely trying to take advantage of the situation. I'd like this to be an ongoing thing for my students.
In reply to LionPride :
Yeah you can FMV the parts you take off but the budget for it just doesn't zero because it was a parts car for this year.
Edit. I think I get what you're saying. That you sold it to yourself for this year. That would be like saying hey I bought this $500 car it's worth $500 so let's zero it out. Well then you've "sold" the car and have no car to run in the Challenge. FMV parts off it or actually sell parts off it to zero it out then you can use the rest.
if you're coming on using FMV with regards to zeroing out budget for 2024, you're going to have a bad time. It's already been noted that changes with regards to the rules as it entails budgeting are coming to close loopholes.
hooray, a canoe that isn't sandy coochie
In reply to LionPride :
If you claim the entire parts car on this years budget, there isn't any recoup on this year's car.
When you start to build the budget for NEXT year's car, you need a starting point. It is reasonable to ask opinions on FMV based on your purchase price, and that certain parts are now excluded. However, FMV is NOT what you spend, it's what the fair market is.
So, if you happen into a deal on a C6 for $500 and remove the wheels and rear end, the fair market value is not $0 (and it's not $500). The fair market value is what the market will bear.
Sometimes FMV doesn't work in your favor. Sometimes a great deal is a much better deal than FMV.
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