Perhaps the most excellent offering on automotive economics I have yet
seen. Superb explanation of reality.

At 08:37 AM 10/25/2002, you wrote:

>2 new heads- $790
>1 new set main bearings- $75
>1 new set cam bearings- $9
>1 new of pistons cylinder and rings- $275
>1 new oil pump- $25
>1 complete engine gasket set- $120
>1 set of rebuilt rods- $140
>1 set of new lifters- $72
>1 reground cam- $80
>8 pushrod tubes- $72
>Total- $1658
>
>   Now I charge $50 per hour as a
>mechanic and $642 would only buy 12 hours of my time.  So you are getting
>all of the rebuilders know-how, years of experience for $642.  Sounds like a
>good deal to me.
>
>  Some rebuilders make "hidden" money by not refunding your
>core deposit("the engine is worn out so your core is no good."  Gee why was
>I putting in a rebuilt engine in the first place!).
>
>2 rebuilt heads- $420 (AVP)
>1 engine gasket set- $120
>1 set of rings- $75
>1 set of main bearings- $75
>1 set of cam bearings- $9
>Total- $699
>
>By these figures if a rebuilder is charging around $1600 for this type of
>"rebuild" (which is really just a "reassembly" with used parts) then he is
>putting in his pocket $901.  And then if your core is "bad" because it is
>"worn out" you may wind up spending an addtional $300-$600 in core costs.
>That means that the cheap "rebuild" turns out to be almost the same price as
>an actual rebuild.  You are getting less "rebuild" for more money.
>
>So do the math, ask the rebuilder exactly what you are getting for the
>money.  And understand that sometimes for a little more money, you can
>actually get a lot more in quality.  Just FYI.  Any comments are encouraged.
>
>Thanks,
>Ken Wilford