INV-02
Recon Spend Authorization
When a unit wants more recon than you estimated, re-run the number off live comps before a wrench moves.
Recon over the approval line needs written GM approval before the work starts, not after the RO closes. The live question is not what to fix — it is which door this unit leaves through.
Already in it for
$
$
$
$
$
8% of purchase price
$
5 sold comps 3 is the floor; flag it at three
Additional spend, line-itemed
| Finding | Safety / wear / cosmetic | Parts | Labor | Line total | Keep or skip | Why |
|---|---|---|---|---|---|---|
Recon against the standard
| 1 | Recon estimated at appraisal | $ |
| + | Additional spend requested | $ |
| = | Total recon | $ |
| ÷ | Purchase price | $ |
| = | Recon as a percent of purchase price 12% |
Landed cost against the ceiling
| 1 | Target retail, from live comps | $ |
| x 0.80 | Maximum landed cost target retail x 0.80 | $ |
| + | Landed before recon | $ |
| + | Total recon, full spend approved | $ |
| = | Landed cost if you approve it all | $ |
| − | Over or under the ceiling | $ |
What is left to work with
| 1 | Target retail | $ |
| − | Landed cost if you approve it all | $ |
| = | Front gross at target retail | $ |
| − | Pack, off the top $300 per unit new and used, off the top | $ |
| = | What you actually work this unit for | $ |
| ÷ | Front gross the standard requires 20% of selling price | $ |
| = | Percent of target |
Price all three doors, even when two are obviously wrong. One: full recon and retail. Two: wholesale as-is today. Three: safety and wear only — photograph the flaw, disclose it, list lower.
The three doors, priced
| Door | Recon spend | Landed cost | List price | Front gross | − Pack | = Work it for | Gross the price owes | % of target | Days to sale |
|---|---|---|---|---|---|---|---|---|---|
This unit, after the spend
| Measure | Actual | Standard | On / Off |
|---|---|---|---|
| Recon as a percent of purchase price | 12% | ||
| Landed cost against target retail | target retail x 0.80 | ||
| Front gross at the price you will list | 20% of selling price | ||
| Acquisition to listed | 5 business days acquisition to listed |
Decision
$
over $750 GM approval required
What this authorization is measured against
- over $750
- GM approval required
- 12%
- 5 business days
- acquisition to listed
- target retail x 0.80
- 20% of selling price
- $300 per unit
- new and used, off the top
Signed copy to the RO before the work starts, copy to the appraisal log (APR-01) against the original entry.