How to Estimate Salvage Repair Costs
Estimating · · 4 min read
A disciplined estimate beats a gut feeling at every auction.
Cost model
Model your all-in cost, not just the repair
A repair estimate is only part of the picture. To bid safely you need a model that captures every cost from the hammer to the road.
Every cost your model needs
Hammer price
The winning bid itself, the anchor for everything else.
Auction fees
Buyer fees, gate fees, and any broker or membership costs.
Transport and storage
Getting the car home and any storage while you arrange it.
Repair estimate
Parts, paint, labor, calibration, and consumables.
Title and inspection
Costs to retitle and pass inspection on a branded vehicle.
Contingency
A cushion sized to the severity and uncertainty of the damage.
A cost model that works versus one that fails
A model that works
- Includes auction fees and gate fees at the actual tier for your bid
- Adds transport from the specific yard to your location
- Prices repair at the parts tier you actually intend to use
- Sizes contingency to the damage severity, not a flat guess
- Subtracts a margin before setting the bid ceiling
A model that fails
- Uses the hammer price as the only cost
- Omits transport or assumes it will be cheap
- Prices parts at best-case aftermarket regardless of fit
- Applies no contingency for damage the photos do not show
- Sets a bid ceiling that leaves no margin for surprises
Cost model questions answered
- How do I find the actual buyer fees before bidding?
- Both Copart and IAA publish their buyer fee schedules on their websites, organized by bid range and sale type. Always check the schedule for the specific location and sale type you are bidding in, because fees differ by yard and by how you bid.
- How much contingency should I add?
- Size contingency to the uncertainty in the damage, not to a fixed formula. A minor, contained hit with clear photos needs less cushion than a heavy impact or flood car where photos are incomplete. When in doubt, err toward more — a surprise on the repair floor is worse than a ceiling you did not reach at auction.
- Should I include storage costs in the model?
- Yes, especially if there is any chance the car will sit at the auction yard after your winning bid. Copart and IAA charge daily storage fees that accumulate quickly. Build in enough days to arrange transport before you factor the cost out of your model.
- Is it worth building a spreadsheet for every car?
- For any car above a low threshold of interest, yes. A simple spreadsheet takes five minutes and forces you to put actual numbers in every cell. The act of filling it out often reveals that a car you found exciting does not pencil out at any realistic bid.
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