The National Auto Auction Association’s updated Arbitration Guidelines took effect June 1, 2026, bringing several changes that affect how independent dealers buy and sell at auction.
For higher-value units, a new threshold applies: on vehicles sold at $50,000 or more, each individual defect must carry a repair cost of at least 2% of the purchase price to qualify for arbitration. The $800 threshold for vehicles under $50,000 stays in place.
Disclosure rules also tightened. Generic “No Arb for [defect]” announcements are now prohibited and may be grounds for arbitration. Likewise, announcing only a warning light or diagnostic trouble code no longer relieves a seller of responsibility for the underlying condition. Sellers are directed to disclose the specific defect, provide a descriptive disclosure, or sell Red Light/As-Is.
Advanced Driver Assistance System (ADAS) components — adaptive cruise, lane departure warning, blind spot monitoring, and similar systems — are now formally added to Appendix I, though components in visibly damaged or disclosed parts remain ineligible.
Additional clarifications cover mileage-exempt vehicles, the single mechanical-filing rule, and title policy documentation.
