By NAAA Standards Committee chairs Kevin Cook (Manheim), Tommy Rogers (BSC America), and John Swofford (Dealers Auto Auction Group)
As the National Auto Auction Association (NAAA) rolls out new policy updates, we urge independent dealers to take note of the changes as they continue to partner with NAAA member auctions in the year ahead.
NAAA recognizes and appreciates the contributions of NIADA and its members in fostering greater transparency and alignment across the industry.
Generally, the NAAA updates its arbitration policies on an annual basis to keep them fair, ethical, and aligned with current industry standards and regulations. The changes, which took effect June 1, help address new challenges, incorporate feedback from members, and adapt to evolving legal requirements. Regular updates ensure that both buyers and sellers are treated equitably and that the auction process remains transparent and efficient.
What Changed?
NAAA Certified Program Overview now includes the following points:
- Auction reserves the right to repair or remediate an arbitrable defect in lieu of unwinding the sale of the vehicle.
- Sellers remain responsible for undisclosed arbitrable defects or components that may not be discoverable based on the scope and environment of the inspection.
ADAS Position Statement now includes the following point:
- ADAS components that are included or integrated with component parts, which are clearly visible as damaged or disclosed as damaged in vehicle listings or condition reports, are not arbitrable. (i.e., ADAS components within damaged bumpers, mirrors, windshields, etc.)
Not Subject to Arbitration
- 20 Year Rule – Replaced existing policy as follows: By default, vehicles exceeding 20 model years are sold as-is unless otherwise stated or represented by the seller.
- 10 Year Rule – Separated from 20 Year language as follows: Trailers, RVs, Watercraft, and Motorcycles cannot be arbitrated if they exceed 10 model years with the current calendar year counting as year one.
Bio-Hazard update to appendix 1 reference as follows:
- Biohazard – Added “Existing and/or Non-Remediated” to more clearly define the required disclosure.
- Published new Position Statement to provide auctions and selling clients with best practices for remediating and disclosing any biohazard conditions.
- Refer to the updated position statement and chart that define the two tiers of biohazards on NAAA.com.
New Best Practice Guide for Announcements
- Increases attention to preventing and/or reducing arbitration claims.
- Provides a summary of recommended announcements for the most frequent arbitrable concerns or defects.
- Refer to the recommended announcement charts for details on NAAA.com.
The new policy, position statements, and best practice guide for announcements can be found on NAAA’s website at www.naaa.com.
The NAAA extends its appreciation to NIADA and its independent dealer partners for their continued collaboration and support in strengthening industry standards.
