Arbitration Policy

Overview

Auction Central™ follows the National  Auto  Auction  Association  (“NAAA”)  Arbitration  Policy as amended or updated and applies as if it was recited at length in this document. In addition, the supplementary arbitration rules set out here apply to all vehicles offered for sale through the Auction Central™ platform. If there is a conflict between the NAAA Arbitration Policy and Auction Central’s™Arbitration Policy, this policy shall prevail to the extent of the inconsistency.  The NAAA  Arbitration Policy can be viewed at www.naaa.com under the Policy section.  The decision of the arbitrator is final and binding on both Buyer and Seller. 

Policy

1. Disclosure

In the event that any portion of this arbitration policy is in conflict with Federal, State, or Local laws, it is Auction Central’s™ position that such laws shall supersede these policies where applicable.

2. Transparency

It is imperative for Auction Central™ to provide its users with a transparent and thoroughly explained process for both purchasing and selling on the Auction Central™ platform. It is also just as important for Auction Central™ to provide all parties with a fair resolution to all reasonable claims and concerns covered under this policy. In light of this, all parties are advised that by agreeing to use the Auction Central™ platform, they are bound to Auction Central’s™ arbitration process as outlined in this document. 

3. Vehicle Sale

Auction Central™ makes no representation or guarantees regarding any/all vehicles for sale or sold on the platform. All vehicles sold on the platform come fully inspected along with a condition report. All representations and guarantees within the inspection and condition report are binding. Auction Central™ is in no way a party to any sales on the platform, its only role is facilitating the sale between buyers and sellers. Facilitation does not imply Auction Central™ to be a party in any transactions. The responsibility of knowing and understanding the details of the vehicle’s sale contract and bill of sale falls solely on the buyer and seller. This further applies to Auction Central’s™ role in facilitating the transfer of title from seller to buyer in any/all transactions.  

4. Force Majeure

Neither party shall be held liable or responsible to the other party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any obligation under this Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected party, including but not limited to fire, floods, embargoes, war, acts of war (whether war is declared or not), insurrections, riots, civil commotions, strikes, pandemics, lockouts or other labor disturbances, acts of God or acts, omissions or delays in acting by any governmental authority; provided, however, that the party so affected shall use reasonable commercial efforts to avoid or remove such causes of non-performance, and shall continue performance hereunder with reasonable dispatch whenever such causes are removed. Either party shall provide the other party with prompt written notice of any delay or failure to perform that occurs by reason of force majeure. The parties shall mutually seek a resolution of the delay or the failure to perform.

5. Title Policy 

  • Seller warrants, represents, and guarantees possession and conveyance of a certificate of title, properly executed, valid in the state where the transaction is occurring and clear of all liens and encumbrances (except current year DMV fees in California), and seller warrants and will defend the title against the claims and demands of all persons whatsoever. 
  • All titles submitted by Seller must be in Seller’s company name on the title or on a properly executed reassignment form. The Seller guarantees the title of each vehicle sold through Auction Central™. This guarantee of the title warrants that the title is marketable and free and clear of any/all leins and encumbrances (“Negotiable Title”). This includes any brand (such as “salvage”) noted upon the current or any prior certificate of title unless such encumbrances were announced at the time the vehicle is listed on the Auction Central™ platform. Seller’s liability under this title guarantee shall never exceed the Auction sale price of the vehicle. The Auction will not be responsible for any expenses incurred on vehicles returned for a late title. 
  • Seller will ensure that the Negotiable Title must be reassigned directly to Buyer. Auction Central™ will not accept title reassignments to Auction Central™ under any circumstances.
  • The Seller must designate if their vehicle is being sold title absent or title with the vehicle prior to listing their vehicle for sale on the Auction Central™ Platform. 
  • Vehicles sold with title present will have 7 (seven) calendar days to provide the Negotiable Title to Auction Central™. Auction Central™ reserves the right to charge the seller a fee of $250 for any title not delivered within the specified time frame. 
  • Vehicles sold title absent will allow the seller 30 calendar days to provide the Negotiable Title to Auction Central™ (unless applicable state law supersedes). 
  • The seller will not be paid for vehicles until a transferable Negotiable Title is received. 
  • If a Negotiable Title has not been produced within 30 calendar days from the date of sale the buyer reserves the right to arbitrate the sale of the vehicle. The seller will be given the option to pay a $500 concession to the buyer for an additional 7 (seven) calendar days to produce the title as opposed to arbitrating the sale altogether. If the buyer refuses, then the seller will be forced to retrieve the vehicle and be fully responsible for any/all transportation costs. 
  • Auction Central™ accepts no responsibility for non-titled vehicles sold without a Negotiable Title. The Seller must announce the vehicle being sold with a bill of sale only and that there is no title to transfer. All non-titled vehicles and equipment will be sold “As-Is.”
  • If the title problem is due to a clerical or coding error, or incomplete documentation, Seller shall be given a reasonable time (determined solely by Auction Central™) after receiving notice to have the error corrected. 
  • Applications or other documents related to a duplicate title will not be accepted unless announced as such or if allowed by the appropriate jurisdiction. 
  • Vehicles being offered for sale must be guaranteed to have a US title by the seller.
  • Vehicles must be legal to sell in the United States. 
  • If, after 90 calendar days from the date of sale, Seller has not produced Negotiable Title and Buyer has not returned the vehicle, this title guarantee shall not apply, and Auction Central shall have no duty to produce the certificate of title to the Buyer or refund the buyer’s payment.  Furthermore, Auction Central shall have no duty to pay Seller.
  • Vehicles lacking a properly assigned title or reassignment to transfer a title at the time of sale must sell “Title Absent” with the Blue light on. 
  • Vehicles lacking lien release or a valid repo affidavit for a repossessed vehicle (where allowed by law) must be sold “Title Absent” with the Blue light on.
  • In regard to defect in title, and in any matter relating to odometer mileage, odometer statements, or damage disclosure statements: Seller and Buyer agree to indemnify and hold harmless Auction Central™ from any liability, loss costs, damage or expense, including attorney fees which may arise either directly or indirectly from the sale and purchase of the consigned vehicle including but not limited to title services provided. 
  • Whenever any claim is made by any person against the title of a vehicle, whether by suit or otherwise, the Buyer, after becoming aware of said claim, shall immediately notify Auction Central™. This involves giving full particulars of claim, cooperating fully in defending any legal action, and in taking other steps to minimize possible loss.
  • Auction Central™ will not be responsible for any shipping fees associated with the transfer of the title between seller and buyer. The Seller is responsible for the shipment cost of the title to Auction Central™ for verification purposes. The Buyer is responsible for the shipment cost of the title to their floor plan company or dealership. 

6. Seller’s Responsibilities 

  • It is the seller’s responsibility to disclose any/all title discrepancies, this includes, but not limited to: inaccurate actual miles, theft recovery, gray market, salvage, replica, stolen vehicle, flood damage, trade assist and Lemon Law buybacks. The practice of selling any vehicles that have a title discrepancy through title washing is absolutely banned on the Auction Central™ platform. Any/all damages caused by title washing fall solely on the seller. 
  • The seller is solely responsible for confirming the accuracy of the condition report provided to them by Auction Central™ prior to the vehicle being listed for sale. The seller maintains full responsibility and liability for any/all claims or calls to action in connection with the following items:
  • Year, Make, Model, and Trim
  • Proper, original, and valid Vehicle Identification Number plate
  • Indication if not originally manufactured for sale in the United States
  • Known accident history or previous damage
  • Known mechanical issues
  • Transmission issues or defects that require in excess of $800 to repair
  • Branded or salvage title 
  • Frame condition in accordance with NAAA Arbitration Policy Section VIII
  • Presence of all originally equipped and properly functioning catalytic converters and/or emission control after-treatment devices
  • Furthermore, the seller will be responsible for the completeness of all representations or descriptions of the vehicle and its mechanical and cosmetic condition as reported by Auction Central™. Failing to inform Auction Central™ of known issues, or any alterations of vehicle light status – as described in the auction light system – will result in the seller holding full financial responsibility. 
  • Seller’s failure to meet any of the following conditions may result in arbitration at the Seller’s sole expense as well as the possible cancellation of the transaction at Auction Central’s™ discretion:
    • Failure to disclose that the Vehicle Identification Number (VIN) plate is not attached to the vehicle.
    • Failure to meet disclosure requirements as ordered under Federal, State, or Local statutes or regulations. (Seller is required to provide any/all disclosures to Auction Central’s™ vehicle condition inspector). 
    • Failure to disclose any matters that relate to the safety or integrity of the vehicle including as per the stated dollar threshold and disclosure requirements stated in this policy, all requirements under local, state, or federal statutes or regulations. 
    • Failure to disclose any/all known defects of the vehicle. This includes defects that are considered reasonably to be identified if the seller was to conduct a thorough test drive of the vehicle before listing it on the Auction Central™ platform. Auction Central™, at its sole discretion, will determine if defects are to be considered reasonable to have been identified.
    • Failure to disclose cosmetic wraps if they cover more than 50% of exterior panels.
    • In the event that the Seller, at Auction Central’s™ sole discretion, is held responsible for arbitration:
    • The Seller will be responsible for reimbursing the amounts for parts and labor associated with repairing the undisclosed condition. This amount will be determined by Auction Central™.
    • The Seller will not be paid for a vehicle in arbitration until arbitration is settled and vehicles are sold.
    • If the Seller causes Auction Central™ to cancel the sale of the vehicle after arbitration is concluded, the Seller is solely responsible for any/all costs to transport the vehicle from the buyer’s lot.
  • In the event that arbitration arises post-payment due to cancellation by Auction Central™, the Seller is required to reimburse payment within 48 hours of the cancellation. Failure to do so shall give rise to further penalties and/or legal action on behalf of Auction Central™ against the Seller.

7. Buyer’s Responsibilities

  • Prior to making an offer to purchase the vehicle through the Auction Central™ platform, the buyer is responsible for thoroughly reviewing all condition reports, pictures, and disclosures made available by the seller and Auction Central™. Failure to do so may result in the buyer waiving their ability to arbitrate said issues. The buyer is further responsible for observing and understanding the sale lights (Green, Green/Yellow, Red, Red/Yellow, and/or Blue, as described below), which are a non-binding, subjective indicator of the various sale conditions for the vehicle.
  • It’s the buyer’s sole responsibility to inspect the purchased vehicle immediately upon arrival at their specified location. Further, the Buyer must verify the vehicle’s condition as represented by the Seller and thereafter promptly notify Auction Central™ of any discrepancies within the time frame stated in this policy.  
  • The buyer shall verify the odometer reading immediately upon arrival at the buyer’s location. If the buyer wants to arbitrate an inoperable odometer the mileage on the odometer must match the mileage listed by the seller at the time of sale and recorded on the bill of sale.
  • The buyer agrees to be liable for any and all work done to a vehicle pending the completion of arbitration, or prior to receiving title to the vehicle. The buyer shall be solely liable for any/all work necessary to undo or remedy changes to the vehicle and any result thereof. 
  • Neither the seller nor Auction Central™ shall be liable for any vehicle sale or repairs made by the buyer before the buyer receives the title. In the event that the buyer sells the vehicle prior to receiving the title, the buyer is solely responsible for all costs and Auction Central™ will be held harmless for all matters related to this vehicle.
  • The buyer is solely financially responsible and hereby assumes all risk of loss on the vehicle from the point of pickup (by the buyer or its agent) or delivery (by third party transporter) until arbitration is completed and final. The buyer or buyer’s agent (transporter or driver) must document any/all damage at the time of pick-up, prior to removing the vehicle from its original location. Auction Central™ and the seller will not be responsible for any/all damage not identified in writing and communicated to all parties as of the time of pick-up of the vehicle once the vehicle is removed from the location. 
  • The buyer shall not have any repairs performed prior to Auction Central™ validating the claim. The cost for any repairs performed by any party prior to Auction Central™ validating the claim will not be covered by arbitration. 
  • If the buyer repairs the vehicle prior to Auction Central’s™ validation, the buyer is deemed to have waived their rights to compensation for said repairs and said repairs will not be arbitrated.

8. Condition Light Indicators

Auction Central’s™ light indicator system is used to notify the potential buyer as to the basic condition of the car. It is the sole responsibility of the buyer to review and understand the condition reports, pictures, disclosures, and other information provided by the seller and Auction Central™. It is Auction Central’s™ foremost goal that each and every buyer has all of the information necessary to accurately determine the condition of the vehicle before making a purchase decision. Systems used by other auction companies, while similar, do not provide the buyer an opportunity to arbitrate a vehicle solely based on the light indicator used with any given vehicle.

Green Light Policy

The green light signals that the vehicle is guaranteed under the conditions outlined in this policy by the seller and Auction Central™. Any defects or issues requiring disclosure per this policy that were not announced will be eligible for an arbitration request from Auction Central™ by the buyer. 

  • Green Light is a “Ride, Drive, & Frame” policy whereby the Seller is ensuring that Mechanical, Electrical, and Frame are all in proper functioning condition.
  • The Buyer will have seven (7) calendar days from the date of purchase to raise any and all concerns about vehicle condition. For the purpose of this section and timeframe, the date the auction ends are deemed to be calendar Day 1. 
  • Auction Central™ reserves the right to pay for parts and labor expenses associated with any arbitration claim related to bolt-on components before the deal can be unwound. Failure of the Buyer to accept such payment waives the Buyer’s right to arbitrate related to any bolt-on components.
  • An Auction Central™ moderator must facilitate all vehicle condition disputes between buyer and seller and all rulings by the said moderator are deemed final.
  • To handle claims in a professional and timely manner Auction Central™ requires:
    • Evidence to be submitted in 48 hours from the date of request.
    • The vehicle must be made available for an Auction Central™ employee or designated representative for inspection.
    • Confirmed receipt of vehicle at a 3rd-party diagnosing facility, at an appointed time (if requested by Auction Central™). 

Failure to meet the above conditions will disqualify the vehicle from arbitration eligibility.

Yellow Light Policy 

A yellow light indicates that the vehicle has one of the following defects: collision damage, hail damage, frame/unibody damage, undercarriage rot, the engine does not crank, engine cranks – does not start, the engine does not stay running, the engine has abnormal ticking noise, the engine has knocking noise, the engine runs rough/hesitation, abnormal smoke from the exhaust, head gasket issue, suspension modifications, emissions modifications, vehicle inoperable (does not move), transmission issue, 4WD/drivetrain issue, airbag deployed, branded title and true mileage unknown.

  • Auction Central™ may amend this list at any time. Said amendments will be effective 24 hours after the amended list is posted on the Auction Central™ platform unless otherwise specified. The defect will be disclosed as part of the disclosures made to the buyer in the condition report, pictures, or other disclosure available through Auction Central’s™ platform. When a yellow light is present, it will be coupled with either a green light or a red light, and is intended to call the buyer’s attention to one of the defects listed above.
  • In the case of a major announcement, such as structural damage, is disclosed on an auction, a Yellow Light will appear.
  • Any announcements that are accompanied by a Yellow Light are not eligible for arbitration. 
  • The Yellow Light supersedes a Green Light with regards to the announcement that is made.

Red Light, Hollow Light “As-Is” Policy

A solid red light, a hollow red light, a hollow yellow light, and a hollow green light are all indicators that the vehicle is being sold As-Is and may be arbitrated for vehicle condition only if, in addition to the other criteria set forth in this policy, it has an undisclosed salvage title, undisclosed current or prior structural damage or undisclosed TMU (True Mileage Unknown). The title may be arbitrated on an As-Is vehicle only if it has a non-transferable or branded title. All other issues regarding Red Light and Hollow Light indication may not be arbitrated.

  • Vehicles being sold As-Is are not subject to arbitration for mechanical, electrical, cosmetic, or visible damage.
  • Vehicles selling for less than $4,000 are identified by a hollow light and are defined as follows:
    • A hollow green light represents a vehicle that would otherwise be a green light vehicle but is being sold As-Is due to a sale price less than $4,000.
    • A hollow yellow light represents a vehicle that would otherwise be a yellow light vehicle but is being sold As-Is due to a sale price less than $4,000.
    • A hollow red light represents a vehicle that would otherwise be a red light vehicle and also has a sale price less than $4,000.
  • Vehicles with more than 150,000 miles or TMU (True Mileage Unknown) will automatically be sold As-Is.
  • As-Is vehicles are sold as “Buyer Beware”. 
  • Auction Central™ will not involve itself in a dispute regarding the condition of an As-Is vehicle purchase.

Blue Light Policy

A blue light indicates that a vehicle is being sold with the title absent, meaning transferable title does not accompany the vehicle. Upon completion of the auction and no later than 30 days from that date, the Seller must provide Auction Central™ with a transferable title. Failure to do so will result in the immediate cancelation of the sale.

  • When a vehicle listed has a Blue Light, in addition to a Green Light or Red Light a transferable title does not accompany the vehicle being sold. 
  • Upon completion of the auction and no later than thirty (30) days from that date, the Seller must provide Auction Central™ with a transferable title. The seller will be given an option to pay a $500 concession to the buyer for an additional 7 (seven) calendar days to produce the title as opposed to arbitrating the sale altogether. If the buyer refuses then the seller will be forced to retrieve the vehicle and be fully responsible for any/all transportation costs. 

9. The Arbitration Process

Valid Vehicle Condition Arbitration

In order for the buyer to submit a valid request for arbitration and to be considered eligible for compensation based on the vehicle condition, each of the following criteria must be met:

  • The alleged defect or concerning condition was not disclosed in the condition report, in a Vintel™ Report, an AutoCheck™ report, or otherwise reported by the Seller;
  • The defect is not included in the list of items not eligible for arbitration as described in this policy. 
  • A single defect must have a repair cost in excess of $800. 
  • Auction Central™  may require the buyer to perform the following tasks in time frame set by the Auction Central™ arbitration team:
    • Provide additional photos or video.
    • Make vehicle available for 3rd-party mobile validation.
    • Bring the vehicle to a licensed 3rd-party repair facility to verify the issue.
    • Within reason, provide any and all other potential evidence as requested that reasonably relates to Auction Central’s™ investigation.
    • Note: All costs are figured by Auction Central™ at wholesale dealer cost, which implies used, remanufactured, and/or aftermarket parts as well as discounted labor rates. Price adjustments may be made by the Seller, up to the amount necessary, to resolve a problem and will be figured off wholesale dealer costs.
  • Auction Central™ shall determine the cost of the repair based on wholesale dealer cost, which means used, re-manufactured, and/or aftermarket parts as well as a wholesale labor rate of $80 for gas vehicles and $100 for non-gas vehicles. Labor time will be calculated using a nationally published labor time guide. 
  • Auction Central™ will validate the issue and reach a resolution.

Invalid Vehicle Condition Arbitration

A vehicle is not eligible for arbitration nor any compensation in the event that any of the following is applicable:

  • Vehicles exceeding 20 model years, with the exception of trailers, RVs, and watercraft cannot be arbitrated if they exceed 10 model years.
  • If a disclosure is made regarding a failed or malfunctioning component, the component or causal component does not qualify for arbitration.
  • Failed components associated with disclosed OBDII trouble codes do not qualify for arbitration.
  • Arbitration claims cannot be made for defects associated with unset or failed monitors.  Any component that could prevent an unset or failed monitor from achieving a passing status is ineligible for arbitration. 
  • Kit vehicles, homemade vehicles, non-factory add on parts, and modified vehicles are sold “As-Is” and cannot be arbitrated.
  • The vehicle makes noises or demonstrates conditions that are inherent or typical to a particular model or manufacturer unless deemed “excessive” by Auction Central™ or its designaees on non-warranty items. OEM dealer warranty guidelines will be used to determine whether the condition is excessive.
  • The issue with the vehicle is related to wearable items, regardless of the repair cost. For purposes of this policy, wearable items shall include but are not limited to: tires, wipers, brake pads, shoes, rotors, wheel bearings, belts, lines and hoses, seals and gaskets (except head gaskets with an active dripping leak), lubricants/fluids, fluid leaks, spark plugs and wires, ignition coils, timing belts, bulbs, filters, shocks and struts, suspension, exhaust, and standard transmission clutches.
  • Vehicles may not be arbitrated solely on Electronic Vehicle History Data (EVHD). Examples of EVHD include AutoCheck, Carfax, NMVTIS, etc. Auction Central™ only verifies AutoCheck reporting. Auction Central™ reserves the right to investigate EVHD based on information found in AutoCheck for information that may impact arbitration.
  • The vehicle has more than two hundred and fifty (250) miles more than the odometer reading listed in the auction at the time of sale. Upon arrival at the buyer’s location, the Buyer must immediately verify the odometer reading. Upon verification and within twenty-four (24) hours of the car’s arrival, the buyer must notify Auction Central™ of any inconsistencies regarding the vehicle’s odometer. If the buyer fails to properly notify Auction Central™, as described in this policy, of the above inconsistencies, the buyer is deemed to have waived any/all claims regarding the alleged inconsistencies unless the vehicle’s mileage reading is consistent when purchased from the Seller. This also includes waving the ability to arbitrate for an inoperable odometer.
  • If a disclosure is made about any component or part of a vehicle, such component or part is not able to be arbitrated.
  • Auction Central™ will not arbitrate any installed Plow, 5th wheel hitches, towing packages, lift kits, aftermarket or altered suspension, inakes, turbo charges, exhaust. Auction Central™ will not arbitrate bolt-on components with respect to the frame, this includes bolt-on cross members, bolt-on engine cradles, and bolt-on subframes. Any structural component welded or riveted shall be subject to arbitration.
  • Mileage cannot be arbitrated for vehicles that are ten (10) years or older and/or deemed exempt from odometer and title disclosure laws. Note that a buyer may arbitrate mileage discrepancies for these vehicles where the seller’s disclosure of mileage differs from the actual odometer reading when the buyer notifies Auction Central™ within twenty-four (24) hours of the car’s arrival.
  • Electrical defects on vehicles four (4) model years old or greater.
  • The condition, lifespan, or serviceability of any Hybrid or Electric vehicle power storage units(batteries) or the presence or functionality of the charging unit.

Wearable Items

Arbitration is further unavailable based on a vehicle’s wearable items regardless of the cost of repairs. For purposes of this policy, wearable items are defined as parts of the vehicle that the manufacturer recognizes the need for replacement/adjustment during the expected life of the vehicle. These items are normally identified in the Owner’s Manual for a routine check and replacement and include, but not limited to: paint, tires, wheels, rims, body components, wipers, brake pads, shoes, rotors, drums, belts, hoses, seals and gaskets (except head gaskets), system restraint sensors and airbags, lubricants/fluids, coolants, sparkplugs, glow-plugs, all batteries, timing belts, bulbs, filters, shocks and struts, suspension, all exhaust system components excluding the catalytic converter, glass/plastic, standard transmission clutches, and any/all items still covered by the manufacturer’s warranty.

Miscellaneous Items

Environmental fees, parts cores, disposal fees, and shop supplies will not be considered when evaluating the repair costs of any arbitration claim.

Investigation

In order for Auction Central™ to fully investigate a claim regarding a vehicle purchased on the platform’s condition, Auction Central™, at their discretion, shall require the buyer to provide evidence relating to the claim and assist in the diagnosis of any issues within 48 hours or issuing the claim. This may require the following actions by the buyer: 

  • Submitting photos or other evidence of the vehicle condition to Auction Central™ within 48 hours of the request;
  • Taking the vehicle to a third-party diagnosing facility designated or approved by Auction Central™. The buyer may also be required to provide Auction Central™ evidence of such facility’s receipt of said vehicle, and/or permit an Auction Central™ vehicle inspector or a third-party inspector to inspect the vehicle on the buyer’s lot at a time convenient for Auction Central™, or within reason, provide any/all other reasonable evidence as requested that shall assist Auction Central’s™ investigation.
  • If the third-party inspector assigned to inspect the vehicle concludes that the claim was invalid or the inspection report reveals that the items in question do not fall within the scope of this Arbitration Policy, the Buyer will be assessed with a $150 fee.
  • In the event that the Seller may be responsible for the reported claims, Auction Central™ will notify the Seller when the claim has been received.

Timing

The Buyer shall have seven (7) calendar days from the date of purchase or 48 hours after receipt of the vehicle, whichever is longer, to raise any/ all concerns about the purchased vehicle’s condition. For the purpose of this section and timeframe, the date the auction ends is deemed to be calendar Day 1.  For claims filed after 7 days of purchase but within 48 hours of reception, a bill of landing or similar proof of reception date is required. For vehicles that are eligible for Auction Central’s™ extended warranty, please visit the following website for further information: https://auctioncentral.com/warranty.

Submitting Grievance

In the instance when the buyer purchases a vehicle that they believe has an undisclosed issue as described in this policy, it is the buyer’s responsibility to immediately notify Auction Central™ through the Arbitration feature located in Auction Central’s™ platform. If for some reason the buyer is unable to submit a claim using Auction Central’s™ platform, the buyer shall immediately contact Auction Central’s™ arbitration department via email at arbitration@auctioncentral.com. All grievances must be submitted giving as much detail as possible within the allotted time frame, as described in this policy, and a failure to do so waives all rights the buyer may have regarding any potential arbitration. Upon receiving the aforementioned notice of the undisclosed issue from the buyer, Auction Central™ will thereafter conduct a thorough investigation of the claim made by the buyer and make a final determination regarding the appropriate resolution, if any, available to the buyer.

Limitations

  • The buyer has the sole responsibility to inspect the purchased vehicle immediately upon delivery and determine any and all issues or concerns relating to the vehicle within seven (7) days of filing the initial grievance on the vehicle. The buyer must then notify Auction Central™ of all vehicle condition issues at the same time, in one unified claim, providing as much detail as possible, using Auction Central’s™ platform. Once a claim has been opened, additional concerns cannot be added to the claim or entered as an additional claim on the same vehicle.
  • Vehicles that are described in the Condition Report as having transmission issues, including transmission-related OBD codes, are not eligible for transmission-related arbitration claims. In addition, there will be a cap on transmission-related arbitration awards for the following vehicles.
    • Vehicles that are 10 or more model years of age will have a $1,000 cap
    • Vehicles that have an odometer reading in excess of 100,000 miles will have a $1,000 cap
    • Vehicles that are between 5 and 9 model years old and have less than 100,000 miles will have a $2,000 cap

Waiver of Arbitration Rights

If the buyer or seller is unable or unwilling to provide the requested evidence regarding Auctions Central’s investigation within the scope and timeframe requested, Auction Central™ reserves the right to close the arbitration related to the vehicle in question, and the unable or unwilling party is deemed to have waived any and all future arbitration rights or defenses as they relate to Auction Central™. 

Arbitration Resolution

Auction Central™ has the sole right to make final determinations relating to vehicle arbitrations and all decisions are final. Auction Central’s™ final determinations are binding on both the buyer and seller, respectively.

Resolutions to Arbitration

In the event that after completion of the investigation, it is determined that condition issue(s) giving rise to arbitration is valid, Auction Central™ has the right to resolve the said issue(s) through payment or credits to the buyer to cover, at Auction Central™ determined wholesale rates, parts, and labor to repair covered vehicle condition issues as set forth in this policy. Other potential resolutions to arbitration may include but are not limited to, the cancellation of the sale, potential resolution without further action, or other resolutions in the sole discretion of Auction Central™.  Auction Central™ has the right to determine that payment for parts and labor expenses, at wholesale rates, associated with any arbitration claim is appropriate before the deal can be canceled. Auction Central™ further reserves the right to cancel a sale rather than determine that payment should be made for parts and labor expenses. In each case, the buyer and seller agree that Auction Central™ will make the decision at its sole discretion.

Price Adjustments

Once Auction Central™ awards a price adjustment, or a credit or repair payment is disbursed to the buyer, the vehicle becomes “As-Is, no arbitration” property of the buyer, and other than title issues, is no longer subject to any further arbitration by either party.

Sale Cancellations

In the event that Auction Central™ determines that the appropriate resolution after the vehicle has been delivered to the buyer is the cancellation of the sale, Auction Central™, or the seller, at Auction Central’s™ discretion, will transport the vehicle to another predetermined location. Up to and including the day of pick-up, the buyer is responsible, at its own cost, for the safety and security of the vehicle until said vehicle is transported off of the buyer’s lot. In the event of a sale cancellation, either an Auction Central™ vehicle inspector or a third-party inspector shall inspect the vehicle on the buyer’s lot to determine if the condition of the vehicle has changed in any way outside of what was subject to the arbitration. 

Policy Version 1.1.2

Change Log

Change Log

8/25/2021: Limitations

  • The buyer has the sole responsibility to inspect the purchased vehicle immediately upon delivery and determine any/ all issues or concerns relating to the vehicle under the applicable timeframe. The buyer must then notify Auction Central of all vehicle condition issues at the same time, in one unified claim, providing as much detail as possible, using Auction Central’s platform. Once a claim has been opened, additional concerns cannot be added to the claim or entered as an additional claim on the same vehicle.
  • Vehicles that are described in the Condition Report as having transmission issues, including transmission-related OBD codes, are not eligible for transmission-related arbitration claims. In addition, there will be a cap on transmission-related arbitration awards for the following vehicles.
    • Vehicles that are 10 or more model years of age will have a $1,000 cap
    • Vehicles that are listed as TMU (True mileage unknown) or have an odometer reading in excess of 100,000 miles will have a $1,000 cap
    • Vehicles that are between 5 and 9 model years old and have less than 100,000 miles will have a $2,000 cap

1/10/2022:  In keeping with the NAAA standards, any single defect that has a repair cost of less than $600 is not subject to arbitration.

5/19/2022: Vehicles with more than 150,000 miles or TMU will automatically be sold As-Is and are not eligible for arbitration.

9/30/2022: If the third-party inspector assigned to inspect the vehicle concludes that the claim was invalid or the inspection report reveals that the items in question do not fall within the scope of this Arbitration Policy, the Buyer will be assessed with a $150 fee.

1/18/2023: Environmental fees, parts cores, disposal fees, and shop supplies will not be considered when evaluating the repair costs of any arbitration claim.

3/15/2023: In keeping with the NAAA standards, any single defect that has a repair cost of less than $800 is not subject to arbitration.

3/15/2023: Sellers are required to disclose cosmetic wraps that cover more than 50% of the exterior panels. Arbitration related to nondisclosure will be the sole responsibility of the Seller.

3/27/2023: Any single defect that has a repair cost of less than $800 is not subject to arbitration. This applies to any defect (mechanical, cosmetic, electrical, other)

3/31/2023: Submitting a Grievance: The buyer has the sole responsibility to inspect the purchased vehicle immediately upon delivery and determine any and all issues or concerns relating to the vehicle within seven (7) days of filing the initial grievance on the vehicle. The buyer must then notify Auction Central™ of all vehicle condition issues at the same time, in one unified claim, providing as much detail as possible, using Auction Central’s™ platform. Once a claim has been opened, additional concerns cannot be added to the claim or entered as an additional claim on the same vehicle.

5/15/2023: Updated Seller’s Responsibilities to include responsibility for: Failure to disclose any/all known defects of the vehicle. This includes defects that are considered reasonably to be identified if the seller was to conduct a thorough test drive of the vehicle before listing it on the Auction Central™ platform. Auction Central™, at its sole discretion, will determine if defects are to be considered reasonable to have been identified.  The Seller is also responsible for undisclosed transmission defects that have a repair cost greater than $800.

6/19/2023: Updated Yellow Light Policy: Arbitration claims cannot be made for defects associated with unset monitors.  For example: If the EVAP monitor is unset, EVAP related arbitration claims will be denied.

6/19/2023: Updated: Red Light, Hollow Light “As-Is” Policy: If three (3) or more monitors are unset, the vehicle will be sold As-Is.

8/3/2023: Invalid Vehicle Condition Arbitration: Issue with the vehicle related to wearable items, regardless of the repair cost. For purposes of this policy, wearable items shall include but are not limited to: tires, wipers, brake pads, shoes, rotors, wheel bearings, belts, lines and hoses, seals and gaskets (except head gaskets with an active dripping leak), lubricants/fluids, fluid leaks, spark plugs and wires, ignition coils, timing belts, bulbs, filters, shocks and struts, suspension, exhaust, and standard transmission clutches.

8/23/23: Title Policy:

  • Vehicles sold with title present will have 7 (seven) calendar days to provide the Negotiable Title to Auction Central™. Auction Central™ reserves the right to charge the seller a fee of $250 for any title not delivered within the specified time frame. 
  • If, after 90 calendar days from the date of sale, Seller has not produced Negotiable Title and Buyer has not returned the vehicle, this title guarantee shall not apply, and Auction Central shall have no duty to produce the certificate of title to the Buyer or refund the buyer’s payment.  Furthermore, Auction Central shall have no duty to pay Seller.

8/23/23: Buyers Responsibilities:

  • Neither the seller nor Auction Central™ shall be liable for any vehicle sale or repairs made by the buyer before the buyer receives the title. In the event that the buyer sells the vehicle prior to receiving the title, the buyer is solely responsible for all costs and Auction Central™ will be held harmless for all matters related to this vehicle.

8/23/23: Invalid Vehicle Condition Arbitration:

  • The vehicle makes noises or demonstrates conditions that are inherent or typical to a particular model or manufacturer unless deemed “excessive” by Auction Central™ or its designees on non-warranty items. OEM dealer warranty guidelines will be used to determine whether the condition is excessive.

8/23/23: Investigation:

  • In order for Auction Central™ to fully investigate a claim regarding a vehicle purchased on the platform’s condition, Auction Central™, at their discretion, shall require the buyer to provide evidence relating to the claim and assist in the diagnosis of any issues within 48 hours or issuing the claim.

9/7/2023:

Arbitration Timing

  • The Buyer shall have seven (7) calendar days from the date of purchase or 48 hours after receipt of the vehicle, whichever is longer, to raise any/ all concerns about the purchased vehicle’s condition. For the purpose of this section and timeframe, the date the auction ends is deemed to be calendar Day 1.  For claims filed after 7 days of purchase but within 48 hours of reception, a bill of landing or similar proof of reception date is required.

10/24/2023:

  • Arbitration claims cannot be made for defects associated with unset or failed monitors.  Any component that could prevent an unset or failed monitor from achieving a passing status is ineligible for arbitration. 

11/13/2023:

Invalid Vehicle Condition Arbitration

  • Auction Central™ will not arbitrate any installed Plow, 5th wheel hitches, towing packages, lift kits, aftermarket or altered suspension, intakes, turbo charges, or exhaust. Auction Central™ will not arbitrate bolt-on components with respect to the frame, this includes bolt-on cross members, bolt-on engine cradles, and bolt-on subframes. Any structural component welded or riveted shall be subject to arbitration.