NAAA Arbitration Window Now 7 Days, Makes Other Rule Changes in 2023

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The National Auto Auction Association (NAAA) is dedicated to establishing standards and enforcing ethical conduct in the auto auction industry. As part of its mission, the organization has developed an arbitration policy to protect buyers and sellers in the auto auction process. This policy provides guidelines on how buyers and sellers should negotiate deals and how the NAAA recommends resolving possible disputes between the parties. 

NAAA shortens arbitration window by 2 days

Earlier this year, the NAAA announced changes to the arbitration timeline for online and in-lane purchases. Previously, the standard had been 7+2 days, where dealers could ship and inspect a vehicle within the allocated time to be eligible for arbitration. The new rule allows seven days flat from the time of purchase (day one).

What could this mean for dealerships? 

The shortened NAAA arbitration window should still allow buyers time to complete a post-sale inspection (PSI) on a vehicle after it has been purchased. During this 7-day time frame, either party can contact their auction directly for assistance resolving disputes regarding damages or conditions before finalizing a sale. 

Inspection challenges

The changed arbitration window affects dealers who want the expertise of their in-house mechanics to complete PSIs. Instead, this may require vehicle inspections to be completed by auctions with a queue of cars waiting to be checked. As a result, there may be delays in shipping that put a potential strain on logistics teams. 

Transporting vehicles

With a strict arbitration window, finding a reliable auto transport provider is essential. Dealerships need a logistics partner that offers speed and accuracy when moving their auction buys. This helps dealerships forecast shipping times and plan post-sale inspections based on the vehicle’s arrival. 

Understanding NAAA’s arbitration policy 

The National Auto Auction Association’s arbitration policy provides an effective way for buyers and sellers to ensure fair deals when participating in auto auctions. By abiding by the arbitration window guidelines, car dealers can ensure they get the best possible deal when buying or selling cars at auctions around the country. Understanding this policy ensures buyers and sellers involved in auto auctions follow industry standards while protecting the integrity of the auction marketplace. 

Additional NAAA arbitration updates

In addition to the shorter arbitration window, the NAAA has made the following updates: 

Title Arbitration Policy 

Section 14: Sellers must now disclose any additional requirements or contingencies a buyer must meet when purchasing vehicles sold with a lemon law or manufacturer buyback.

Arbitration Guidelines VII 

  • Section 2: Previously, any single mechanical defect with a repair cost of $600 or more was subject to arbitration. This price has been bumped to $800 or more.
  • Section 4e: The NAAA added “other suspension components” are now included under wearable items not subject to arbitration. 
  • Section j: This new guideline states “vehicle accessories on vehicles over 4 years old” are no longer eligible for arbitration. The policy shares a full list of accessories.  
  • Section k: “Oil leaks that are not actively dripping and visible by inspection” are no longer eligible for arbitration. This is a new guideline. 
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About Montway Auto Transport
Montway Auto Transport is a leading third-party logistics provider with expertise in nationwide single-unit moves for auctions and dealers. Our carrier network of over 15,000 understands the strict rules and regulations in the wholesale industry and operates with speed and efficiency. Call 888-998-4161 or visit to speak with an expert.

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