Value of Rebuilt Kappas?

[Chewievette]

I plan on picking one up in the near future to rebuild. My plans involve serious modifications so the warranty is void anyways, and the resale value is not a high priority for me.

However, I have been considering rebuilding them on the side to make some spare cash. With the cost of the car plus repairs they could sell for around 10K. but with the value of clean used cars dropping like a stone I'm starting to wonder if I would even make my money back. You guys have been watching the price of these cars more closely than I have so I was hoping to get some of your insight and advice, thanks.

[jwvess00]

Hi there!

Dad and I have rebuilt cars sold at auction with salvage titles (KY marks the titles as "rebuilt"). Generally, a reasonable sale price for the car, assuming it is rebuilt properly and is in excellent condition, is loan value. So, you're looking at a resale *asking* price of about 80% of retail.

Unless you have access to good deals on parts and outside labor (i.e. a good frame shop -- every car we've rebuilt goes on a frame machine, exceptions only for body-only damage like a hailstorm car), you won't make much money at this.

An example -- I bought my wife's '07 Malibu for $4700, hit light up front. I replaced the hood, driver's fender, bumper cover, grilles, one headlight (I think, don't remember), one airbag (and the airbag controller), both front seatbelts (they "blow" in a collision and must be replaced), the radiator, condenser, and one AC line. After that, plus paint (we paint as a hobby), a trip to the local frame shop, and taxes/licensing, I had $8400 in the car. At the time, I could have quickly sold it for a bit more than $10k, so there is some profit there but considering the labor, it's no goldmine.

The seemingly expensive parts are trim pieces (if I remember right, the lower grille trim for that Malibu was over $200), and the airbags/controller/seat belts. If an airbag blows, you *must* replace the airbag controller, too. Also, the seat belts have modules that permanently lock the belts in a collision, so both seat belts get replaced as well. I think the seat belts in the Malibu were over $150 each.

If you're building the car for sale, you've got to replace all of this stuff, as a car with a marked title will be held to a high standard by a buyer. The car has to be just about perfect, or a buyer will walk away to buy a non-wrecked car instead. A half-done car will be viewed as one not rebuilt properly, so every trim piece must be in place and in good condition, etc. or it will not sell (or only sell at a greatly reduced price).

[Chewievette]

Funny how your Malibu numbers are aligning similarly with mine.. Basically after all the work I only end up with about $2K pre-labor profit per car. Depending on exactly how much time I have involved there really isnt much gain. I have a parts source, its nothing stellar but its better than retail, every bit helps. The big problem is all the parts you cant tell needing replacement until you are waist deep in it. Those little bits of trim and hardware nickel and dime you to death.

I've been drooling on wrecks for a couple weeks now waiting for one with the right options for my own rebuild. Its really quite sad the number of wrecked kappas. I was hoping to save a few from the crusher and make some money while I was at it, but perhaps its best to forget the idea. Maybe I should get on the other end of the process and start a kappa graveyard... "so that others may live"

[Radio Doc]

Originally Posted by Chewievette Maybe I should get on the other end of the process and start a kappa graveyard... "so that others may live"

Assuming you have the room to do so, this would be a great idea!

I hate to be gloomy (please don't blame the messenger), but my thoughts are as follows...

-GM has essentially gone belly-up and is fighting for its life.

-Suppliers are dropping like flies. With the big boys like Delphi and Visteon in bankruptcy, the second and third tier supplies are going to have a real struggle to stay viable.

-In the grand scheme of things, I would call the Kappas a relatively low production vehicle.

Again, call me gloomy if you will, but in light of all of the above, I really don't think Kappa parts are going to be very high on anybody's list of priorities.

So, yes, save them from the crusher!