APR-02
Appraisal Worksheet
Start from what you have to sell it for and run the sheet top to bottom; the offer comes out the bottom as an output.
Unit
A comp counts only when it meets all five
Sold comps
| Sold price | Sold date | Miles | Distance | Year / trim | Tier | Adjustment — miles, tier, accessories |
|---|---|---|---|---|---|---|
Maximum offer
| 1 | Target retail, from the comps above 5 sold comps 3 is the floor; flag it at three | $ |
| x 0.80 | Maximum landed cost target retail x 0.80 | $ |
| − | Recon estimate, line-itemed 8% of purchase price | $ |
| − | Transport | $ |
| − | Buyer fee and other fees | $ |
| = | Maximum offer — round down | $ |
Check it backward
| 1 | Landed cost: offer, recon, transport, fees | $ |
| − | Front gross at target retail | $ |
| = | Front gross as a % of target retail 20% of selling price | |
| − | Pack, off the top $300 per unit new and used, off the top | $ |
| = | Front gross measured and paid on | $ |
Gross and recon standards
- 20% of selling price
- target retail x 0.80
- $300 per unit
- new and used, off the top
- excluded from deal gross
- 8%
- of purchase price
- 12%
Do not bid off the packed number. Buying to the front gross standard is how pack gets covered; subtracting it again at the buy puts you under your own market.
Attach the comps and file both with the appraisal log entry (APR-01). If you cannot show the comps, you did not build a number.