Please Note: Due to the volume of vehicles and the resources available for inspections, the time period for reporting arbitration is now Monday at 5:00pm.
Any vehicle 2010 and older or km’s in excess of 200,000 will be sold Red Light AS IS (no arbitration) unless otherwise declared Green Light by the seller
DECLARATION | EXPLANATION | ARBITRATION PERIOD |
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1. ABS Defective | The seller must disclose if the anti-lock braking system is not operational (is equipped). Arbitration is only available for repairs over $800.00. | Regular |
2. Accident Repair $3000.00. |
The Seller must declare a vehicle to be Accident Repaired if a vehicle history report (e.g. Car Proof, Auto Check, CARFAX, and Lease Return Questionnaire) or other industry accepted information source indicates repair for single incident damage of $3000 or more.If the dollar value of the accident is known, it must be declared.If the seller believes that a vehicle history report is incorrect, it is the Seller’s obligation to get the report corrected within the arbitration period or risk having the sale cancelled. | Regular |
3. Adjacent Panels Replaced | The Seller must declare if two or more adjacent panels (excluding bumper panels) have been replaced on a vehicle. Please note: if the panels were replaced due to an accident, depending on the cost of repairs, it may also be necessary for the Seller to make the accident repair declaration. | Regular |
4. Air bags missing/defective | The Seller must disclose if the vehicle’s airbags are missing or not operational. Air bag issues are subject to arbitration only if the cost of repair is over $800. | Regular |
5. Alternate fuel or conversion | The seller must disclose if the vehicle uses propane or natural gas, or at any time had a propane or natural gas fuel system. | Regular |
6. Excessive Rust (Body & Frame) | The Seller must disclose if the vehicle suffers from excessive rust. Rust is considered to be excessive when the location or quantity of the rust affects the structural integrity of the vehicle, e.g. the frame or sub frame of any structural component is perforated by rust or will not pass certification standards. Rusted rocker panels and cab corners must be declared with the exception of vehicles 2007 and older, unless sold under the Green Light. | Extended |
7. Fire Damage | The Seller must disclose if the vehicle has been damaged by fire | Extended |
8. Flood Damage | The Seller must declare a vehicle as Flood Damaged when: 1 – water or other liquid has penetrated the vehicle to the level of the floor boards or higher; or 2 – if any of the following components have been damaged due to immersion: Front or rear lighting or wiring harnesses/ Engine and its major components / Transmission and differential / Dash instrument panel and wiring / Passenger seat cushions / Power seat or window motor / Major sound system components. |
Extended |
9. Grey Market | The Seller must declare if the vehicle was ever registered in a country other than the United States or Canada or manufactured not in compliance with North American standards. All Grey market vehicles offered for sale must include a Car Proof Verified vehicle history report, or equivalent. | Regular |
10. Incident Report (optional) | If the Seller has a third party vehicle history report (e.g. Car Proof, AutoChek, CARFAX) indicating accident repair of under $3000 it may be declared as an Incident Report at the option of the Seller; however, no arbitration is available. | N/A |
11. Incorrect Vehicle Marking | The Seller must disclose if any logo, badge, decal, emblem, ornament or similar markings of the vehicle do not match the make, model or series of the vehicle. | Regular |
12. Irreparable | Regardless of whether the title has been branded, the Seller must disclose if the vehicle is not capable of being repaired for roadworthy operation and may only be used for parts of scrap. Irreparable vehicles are assumed to also be Total Loss vehicles and thus the Total Loss declaration does not need to be made. | Extended |
13. Km. 3000 km. | If the odometer reading is accurate, the Sell must disclose the distance the vehicle has traveled as indicated on the odometer. Minor odometer discrepancies of 3000km or 5% (whichever is less) are not subject to arbitration. | Extended |
14.Major Repairs | The Seller must disclose if a major component of the vehicle is defective or not operational and the component would cost over $800.00 (on a non-cumulative basis) to repair or replace in accordance with standard Mitchell warranty rates.Major components include: Engine / Transmission / Power train / Frame or Sub-frame / Suspension / Rusted rocker panels or cab corners / Computer equipment / Fuel operation system / Electrical system / Emissions system.Manual Transmissions: Vehicles with standard transmissions cannot be arbitrated for manual clutches unless the defect will not allow a safe test drive.The following items are not subject to arbitration: Upholstery /Glass / Hail damage / Tires / Visible body damage. Noise and Inherent Conditions: No arbitration can be based on noises or conditions that are inherent or typical to a particular model or manufacturer, unless deemed “excessive”. Engine noise such as lifter or other noise that is deemed to be normal for the age and distance traveled cannot be arbitrated.Level 1 and level 2 oil leaks are not subject to arbitration. Only a level 3 oil leak can be arbitrated if the cost of repair exceeds $800.00. |
Regular |
15. Material Variation from Production Specs | The Seller must disclose if the vehicle varies materially from the original manufacturer’s specifications. | Regular |
16. Odo 5 digit | The seller must disclose if the odometer is a 5 digit odometer with over 100,000 miles or kilometers. | Regular |
17. Odo Broken/Faulty | The Seller must disclose if the odometer of the vehicle is broken or faulty, i.e. not accurately tracking distance driven. | Regular |
18. Odo in Miles | The Seller must disclose if the odometer is in miles. | Regular |
19. Odo Replaced. | The Seller must disclose if the odometer has been replaced. | Extended |
20. Odo Roll back | The seller must disclose if the odometer has been rolled back. | Extended |
21. Odo Unreadable | The Seller must declare the odometer to be unreadable if it is accurately tracking distance driven but cannot be read due to pixel damage to obtain an odometer reading, or similar reasons. | Regular |
22. Out of Province. | If the province of the last registration (or equivalent) to a retail customer is different than the jurisdiction from which the vehicle is currently being sold, the vehicle must be declared an out of province vehicle and the Seller must identify the last province in which the vehicle was registered (or equivalent) to a retail customer. For vehicles sold in Ontario only: A vehicle remains an out of province vehicle and must be so declared, if it was previously registered (or equivalent) to retail customer in another province and has been registered in Ontario for less than 7 consecutive years. The seller must declare all of the provinces in which the vehicle was previously registered. |
Regular |
23. Previous Daily Rental | The Seller must disclose if the vehicle was previously used as a daily rental vehicle (unless the vehicle was subsequently owned by a non-dealer). | Regular |
24. Previous Driving School vehicle | The Seller must disclose if the vehicle was previously used as a driving school vehicle. | Regular |
25. Previous Emergency Services vehicle | The Seller must disclose if the vehicle was previously used as an emergency services vehicle. | Regular |
26. Previous Police vehicle. | The Seller must disclose is the vehicle was previously used as a police cruiser. | Regular |
27. Previous Taxi/Limo | The Seller must disclose if the vehicle was previously used as a taxi or a limousine. | Regular |
28.Stolen and Recovered | The Seller must disclose if a vehicle was recovered after being reported stolen. | Extended |
29.Structural damage | The Seller must declare a vehicle to have structural damage if it meets the definition of structural damage set out in the National Auto Auction Association’s Structural Damage Policy. See www.naaa.com | Extended |
30. Title Branded | The Seller must disclose if the vehicle’s title has been branded in accordance with provincial or state law and must indicate the brand(s) assigned. | Extended |
31. TKU | The seller must declare a vehicle TKU (true kilometers unknown) if the distance traveled is unknown and there are no reliable records available to verify the odometer reading as of a certain date. When a vehicle is declared TKU, the total distance that a vehicle has been driven is likely substantially higher than the reading shown on the odometer. | Extended |
32. TKU | If the total distance driven is unknown, but based on reliable records, the distance driven as of a certain date is known, the Seller must declare the last known distance and provide the date. | Extended |
33. Total Loss | The Seller must declare if an insurer determined the vehicle was a total loss. | Extended |
34.U.S. Vehicle | The Seller must declare if the vehicle was ever registered in the United States or manufactured not in compliance with Canadian standards. All U.S. vehicles offered for sale must include a Car Proof Verified vehicle history report, or equivalent. | Regular |
35. VIN Plate issues | The Seller must disclose if the original VIN plate (on the driver’s side of the dashboard) has been removed, altered or replaced. Vehicles may not be offered for sale unless the original VIN plate is in tact or has been replaced in accordance with provincial and federal regulatory requirements. | Regular |
36. Warranty Cancelled | The Seller must disclose if the manufacturer has cancelled the warranty on the vehicle or has given notice of its intention to do so. Notice of warranty cancellation given after the date of sale is not subject to arbitration. | Regular |
37.Year/Make/Model/Seris | The Seller must disclose the year, make, model and series (i.e. trim level) of the vehicle as indicated by means of VIN decoding. | Regular |
ARBITRATION PERIODS |
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Regular | End of business Monday. For internet sales,(vehicles purchased online) Purchaser must prove date of delivery) 1 business day after delivery of the vehicle to the Buyer. | |
Extended | 7 calendar days following the date of sale, or for internet sales, from the date of delivery to the buyer. If the Buyer was not able to discover the undisclosed declaration through inspection or a reliable third party vehicle history report, the arbitration period may be extended at the discretion of the Auction. |
NAAA Recommended Structural Damage Policy |
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Last updated January 2017. | ||||||||||
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Disclosure Requirement |
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Component | Unibody | Unibody on Frame | Conventional Frame | |||||||
1. Radiator Core Support – Including the upper and lower tie bars, center support or side baffles. | None | |||||||||
2. Frame Rails Extensions (Ears) – On frame vehicles that area at the end of the frame rail to which the bumper, reinforcement or isolators attach. | None | |||||||||
3. Frame Rails – Including front, center & rear rails. | Existing or repaired damage, or replacement | |||||||||
4. Spring Pod, and Torque Box or Stabilizer Mount. | N/A | Existing or repaired damage, or replacement | ||||||||
5. Cross members – Except Bolt-Ons | N/A | Existing or repaired damage, or replacement | ||||||||
6. Apron/Upper Reinforcement Rails. | Existing or repaired damage, or replacement | None | ||||||||
7. Strut Tower. | Existing or repaired damage, or replacement | None | ||||||||
8. Cowl Panel / Firewall – excluding cowl vent panel. | Existing or repaired damage, or replacement | None | ||||||||
9. Support Pillars – “A”, “B”, “C” or “D” Pillars. | Existing or repaired damage, or replacement | |||||||||
10. Roof. | Replacement | |||||||||
11. Rocker Panel – Outer. | Replacement | None | ||||||||
12. Rocker Panel – Inner. | Existing or repaired damage, or replacement | None | ||||||||
13. Floor Panels. | Torn and/or perforated if 1″ or more, dented if deflected more than 2″ or replacement floor panel | None | ||||||||
14. Quarter or Cab Panel. | Replacement | None | ||||||||
15. Rear Body Panel | None | |||||||||
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This policy is a recommendation only. Its adoption by NAAA members is strictly optional. | ||||||||||
Structural Damage Policy Clarifying Points
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Frame Identification | ||||||||||
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