Start a Car Restoration Business

Project Economics Worksheet

Companion to the lessons "Valuing and scoping the build" and "Estimating and pricing the work."

Car / year / trim: Date: Condition grade you can deliver:

1. Scope ladder reference

Scope level	Labor reality (verified bands)
Driver quality (safe, reliable, presentable)	800-1,500 hrs for a full restoration at this grade
Structural restoration (panels, floors, paint addressed)	Between driver and frame-off, priced phase by phase
Frame-off (body off the frame, both rebuilt)	2,000-3,000 hrs; full builds land $40,000-120,000
Restomod (original look, modern running gear)	Hours similar to frame-off; parts costs higher, different buyer

2. The scoping math (napkin, run repeatedly until the answer is boring)

Line	Estimate	Actual (post-project calibration)
Finished value at the grade you can deliver (valuation tools, auction results, marketplaces)	$	$
Purchase price	-$	-$
Parts and materials at real quotes, shipping included (~25% markup when you source and stand behind them)	-$	-$
Subcontracted lines: paint, machine work, upholstery (quoted by the shops that will do them)	-$	-$
Your hours: hrs x $/hr	-$	-$
Contingency at 10-20% (teardown will find something)	-$	-$
Headroom (pays you, or it does not exist)	$	$

Hours estimated: Hours actual: Track actual against estimate on every job, forever; within five projects your gut and your spreadsheet start agreeing.

3. Rate setting

☐ Regional shop rates researched (ask, read shop sites, get a quote as a customer). Benchmarks: established US restoration shops $85-300/hr averaging ~$125; quality independents generally $100-175/hr.
☐ Entry rate set slightly below the established rate you found: enough to win first work on value, not enough to signal cheap.
☐ Raise the rate when the portfolio says so, not when the calendar does.

4. Phase estimate format

Phase	Not-to-exceed	Gate: checkpoint before next phase
1. Teardown and assessment	$	Photo record, findings list, revised numbers for every remaining phase
2. Bodywork	$
3. Paint	$
4. Mechanical	$
5. Final assembly	$

Never present a single total for a multi-phase restoration. Contingency visible, hours stated, delivered in writing and walked through in person or on a call.

5. The fork decision

☐ Client work	Scope fits a funded client and a price you can hit; pays in milestones through the project.
☐ Buy-improve-sell	Headroom after all costs is real profit and you accept the wait; pays once at the end. Dealer ceiling: 4-5 sales/yr in most states (TX 4, WA 4, SC 5; GA intent-based); resale purchases can still owe sales tax (6.25% in TX).
☐ Walk away	Rust hides in structure, title is wrong, parts unobtainable, or cost swallows the headroom. The walk-away was free.

Written acknowledgment when total cost will exceed resale value (a love project, not an investment): signed before work begins.