The difference between a profitable salvage flip and a money pit often comes down to one thing: how well you estimated repair costs before bidding. Here's how to get better at it.

The Golden Rule

Whatever you estimate, add 20-30% for surprises. Hidden damage is the norm, not the exception. A "simple" front-end repair often reveals additional damage once you start disassembly.

Understanding Damage Levels

Minor/Cosmetic ($500-2,000)

• Dents, scratches, scrapes
• Bumper cover damage
• Minor panel damage (no replacement needed)
• Headlight/taillight replacement
• Interior wear and tear

Moderate ($2,000-8,000)

• Panel replacement (fender, door, hood)
• Suspension component damage
• Radiator/cooling system damage
• Airbag deployment (bags + sensors)
• Minor mechanical issues

Heavy ($8,000-20,000+)

• Frame/unibody damage
• Multiple panel replacement
• Engine or transmission damage
• Extensive electrical damage
• Major structural repairs

How to Research Costs

Parts Pricing

• Car-Part.com: Search junkyards nationally for used OEM parts
• RockAuto: Aftermarket and OEM parts pricing
• eBay Motors: Used and aftermarket parts
• Dealer parts department: For OEM-only items

Labor Estimates

• Body shop estimates: Get 2-3 quotes if possible
• Labor guides: Shops use tools like Mitchell or CCC ONE—labor times are standardized
• YouTube: Search "[year make model] [repair type]" to see what's involved

Airbag Costs

Airbag deployment adds significant cost. Budget:

• Driver airbag: $200-600 (used)
• Passenger airbag: $200-800 (used)
• Side curtain airbags: $150-400 each
• Seat airbags: $100-300 each
• Airbag module reset/replacement: $100-400
• Seatbelt pretensioners: $100-250 each

A full airbag deployment (driver, passenger, curtains, seatbelts) can easily cost $1,500-3,000 in parts alone.

Analyzing Auction Photos

Learn to read the photos carefully:

• Gap alignment: Uneven panel gaps suggest frame damage
• Tire position: Wheels pointed wrong direction = suspension damage
• Fluid on ground: Indicates what systems are leaking
• Deployed airbags: Look at steering wheel and dash
• Impact location: Front corner hits often cause frame damage
• Secondary damage: Look at photos of ALL sides, not just the obvious damage

Red Flags That Increase Cost

• "Does not run": Could be minor, could be major—assume the worst
• Front corner impacts: Often bend the frame rail
• Theft recovery: Stripping and vandalism damage hard to assess from photos
• Fire damage: Wiring and heat damage spreads further than visible burn marks
• No keys: May need ignition, modules, programming ($500-2000)
• Older/rare vehicles: Parts availability issues drive up costs

Sample Repair Budget: Front-End Hit

Common scenario: Honda Accord with moderate front-end damage, airbags deployed.

• Hood (used): $150
• Front bumper cover (aftermarket): $200
• Fender (used): $100
• Headlight (aftermarket): $80
• Radiator (aftermarket): $150
• Condenser: $100
• Radiator support: $200
• Driver airbag (used): $250
• Passenger airbag (used): $350
• Airbag module: $150
• Miscellaneous (brackets, clips, fluids): $200
• Paint/body work: $1,500

Estimated total: $3,430

With 25% buffer: $4,300

This assumes DIY labor. Add $2,000-4,000 if paying shop labor rates.

When to Walk Away

Sometimes the math just doesn't work. Walk away if:

• Repair estimates exceed 60% of the rebuilt value
• Frame damage is confirmed or likely
• Parts are unavailable or extremely expensive
• You can't confidently estimate the damage
• Your profit margin disappears with realistic estimates

There will always be another car. Better to pass on a bad deal than overpay and learn an expensive lesson.