Learn to calculate your true all-in cost for auction purchases, including fees, transport, and reconditioning.
What Is Landed Cost?
Landed cost is the total amount you'll spend to get a vehicle purchase-ready on your lot. It's the most important number in auction buying because it determines your actual profit.
The Landed Cost Formula
Landed Cost = Purchase Price + Buyer Fee + Transport + Inspection + Title/Reg + Reconditioning
Breaking Down Each Component
Purchase Price
The hammer price — what you actually pay for the vehicle at auction.
Buyer Fee
The auction house's fee, typically 3-8% of purchase price. This varies by auction house and price tier.
Transport
Cost to move the vehicle from the auction to your lot. Ranges from $100 for local pickup to $1,200+ for cross-country.
Inspection
Pre-sale or post-sale mechanical inspection. Budget $150-$300.
Title and Registration
Title transfer, registration, and any applicable taxes. Varies by state, typically $100-$300.
Reconditioning
Detailing, minor repairs, safety items. Budget $200-$1,000 depending on condition.
Example Calculation
| Component | Amount |
|---|---|
| Purchase Price | $18,000 |
| Buyer Fee (5%) | $900 |
| Transport | $350 |
| Inspection | $175 |
| Title & Reg | $125 |
| Reconditioning | $450 |
| Total Landed | $20,000 |
Why This Matters
If the retail value is $24,000 and your landed cost is $20,000, your gross profit is $4,000 (16.7% margin). But if you forgot to include transport and reconditioning, you might have bid $19,500 thinking you'd make $4,500 — only to realize your true profit is much less.
Automate It
RunsList calculates landed cost automatically using your fee presets. Set up your fee structure once and every deal shows the true all-in cost.
Frequently Asked Questions
What is the main takeaway from How to Calculate Landed Cost for Auction Vehicles?
Learn to calculate your true all-in cost for auction purchases, including fees, transport, and reconditioning.
How should dealers use this before bidding?
Use the guidance before sale day to compare retail comps, estimate landed cost, set a max bid, and avoid vehicles where fees, reconditioning, title status, or buyer demand do not support the risk.
Who is this article written for?
This article is written for auto dealers, brokers, wholesalers, and flippers working on deal scoring who need faster auction decisions backed by comps, margin math, and risk flags.