When we buy a vehicle at auction, certain factors determine if it qualifies for arbitration. Things like auction announcements, the lighting system, vehicle costs, and title are a few of these factors.
Arbitration for vehicles sold under the Manheim sale light system is governed by the NAAA Arbitration Policy.*
Light Color** | Meaning | Eligible for Arbitration? |
Notes |
Green | Vehicle free of any known major defects | Yes | Any single mechanical defect with a repair cost of $600 or more is eligible to arbitration. Refer to Arbitration Guidelines (section VII) of the NAAA Arbitration Policy for more information. |
Yellow | Vehicle sold under announced conditions | Limited | Refer to Appendix I (“Limited Guarantee”) of the NAAA Arbitration Policy for more information. |
Red | Vehicle sold as-is | Significantly Limited | Arbitration on as-is dollar amount, model years, and mileage is subject to local auction policy. Refer to Arbitration Guidelines (section VII) of the NAAA Arbitration Policy for more information. |
Blue | Vehicle sold without title present | Misrepresented vehicles only | Refer to Title Arbitration Policy (section V) of the NAAA Arbitration Policy for more information |
*Different policies may apply depending on the type of vehicle and channel in which it is sold. For a complete list of policies governing arbitration, please review the Arbitration section of Marketplace Policies.
**During in-lane sales, lights are normally located above the auction block. During Simulcast sales, lights are at the top right of the sale window.
Vehicles selling for $3,000 and under, with no Limited Guarantee announcement, are considered as-is. These vehicles are only subject to arbitration for:
For more information, please refer to the $3,000 and Under Arbitration Policy.
OVE.com vehicles do not operate under the sale light system. All vehicles are considered to be “ride and drive” (R/D) unless specifically labeled as-is (includes any vehicle selling for $3,000 or under).
For more information, see the Addendum to 2021 NAAA Arbitration Policy for OVE.
Vehicle Condition |
Meaning | Eligible for Arbitration? |
Notes |
Ride and Drive | Vehicle free of any known major defects. | Yes | Any single mechanical defect with a repair cost of $600 or more is eligible to arbitration. Refer to Arbitration Guidelines (section VII) of the NAAA Arbitration Policy for more information. |
As-is | Vehicle sold as- is; vehicle sold for $3,000 or under. | No | Arbitration on as-is dollar amount, model years, and mileage is subject to local auction policy. Refer to Arbitration Guidelines (section VII) of the NAAA Arbitration Policy for more information. |
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