The National Auto Auction Association (NAAA) has an arbitration policy in place for resolving disputes that arise during the buying and selling process of vehicles at auto auctions. On Monday, July 15th, the NAAA updated their arbitration policy and certification guidelines. Here’s what you need to know if you’re a buyer or seller in the auto auction industry.
What Updates Were Made to NAAA’s Arbitration Policy?
There are the 6 updates that the NAAA made to their arbitration policy, which will go into effect on August 5th, 2024:
Position Statement
A new electric vehicle and hybrid battery position statement that states EV and hybrid batteries are now eligible for arbitration. The new policy says, “Current Arbitration Guidelines allow for arbitration claims in the event of an electric or hybrid vehicle battery problem or replacement.”
Sellers must disclose any electric or hybrid battery problems and concerns that are $800 or more, for a single issue, to repair or replace. This policy applies to vehicles up to 8 model years old. If the vehicle model is over 8 years old, then the EV and hybrid batteries for those vehicles are no longer eligible for arbitration.
Certification Standard Guidelines
Editorial updates to the NAAA Certification Standard Guidelines and a simplified format, to help understand more clearly.
Arbitration Policies
New in-lane and online arbitration policies that address the seller’s responsibility when using restrictive or limited announcements, as well as accountability for confusing or deceptive disclosures.
Emission Components
Any emission components that are altered, changed, or disabled from their intended function are required to be announced.
Mechanical Modifications
Any major mechanical modifications or alterations, such as engine tuners or programming, high performance or racing alterations, or turbochargers, are required to be announced.
Appendix I
Arbitration Policy-Appendix I is now color-coded by selling light (green, yellow, red) and organized for easier reference.
When the new policy takes effect, all materials will be available in the “Policy” tab on the NAAA website. You will be able to download and print copies of the documents from the website.
Why Were These Changes Made?
According to the NAAA, these changes were made to “add clarity, improve transparency and better reflect the evolving nature of the industry.”
They also said the policy updates are based on industry feedback gathered by the NAAA committee and customers.
Although the NAAA policy has been updated to include electric vehicles and hybrids, it doesn’t change any existing factors in the current policy.
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