Big Valley Auto Auction Blog

What Does a Yellow Light Mean at an Auto Auction?

Written by Victor H. | Dec 29, 2023 4:43:32 PM

Have you ever worn a shirt with holes in it? A shirt with holes isn’t bad, because it still does its job of covering your body. There are just a few spots that aren’t covered. This is similar to a vehicle running under a red light.

 

Big Valley Auto Auction has used a light system for every vehicle that has run through our lanes since 2008. One of the light colors we use is yellow.

 

In this article, you will learn what a yellow light represents, what is and isn’t covered, if a yellow light vehicle qualifies for arbitration, and the services yellow light vehicles qualify for.

 

After reading this article, you’ll have the information needed to understand what a yellow light vehicle is at an auto auction.

 

What Makes a Vehicle Yellow Light?

There are 3 factors that determine whether a vehicle is a yellow light:

  • Vehicle must be less than 10 years old
  • Less than 150k miles 
  • A good drivetrain

Note: Yellow light vehicles do not have to be mechanically perfect.

 

What is an Example of a Yellow Light Vehicle?

An example of a yellow light vehicle is a 2007 GMC Sierra with 57k. At this time (2024) this vehicle is less than 10 years old.

 

What Does the Limited Guarantee Cover for Yellow Light Vehicles?

There are 3 things covered by a yellow light Limited Guarantee:

  • Engine 
  • Transmission 
  • Differential(s) transfer case

 

What is Not Covered by the Limited Guarantee?

There are 3 major components, among others, not covered by the Limited Guarantee:

  • Air conditioning systems 
  • Airbags 
  • Emissions control equipment

 

Can You File an Arbitration For a Yellow Light Vehicle?

Yellow light vehicles are eligible for arbitration, only for the following components: 

  • Engine
  • Transmission
  • Differential(s) transfer case

However, these must be a single issue costing at least $800, not multiple issues costing a total of $800.

 

What Services Do Yellow Light Vehicles Qualify For?

Yellow light vehicles are eligible for the following services:

  • Frame check 
  • Pre sale inspection 
  • Post sale inspection

These services only cover things that would be guaranteed on the yellow light.

 

Do I Understand What a Yellow Light Vehicle Is?

The light system at an auto auction can be confusing if you’re new to auto auctions. However, using this article as a guide can help you prepare for your next visit to Big Valley Auto Auction.

 

Whether this is your first auto auction or you’ve been to an auction but never knew what the light system was, you can use this article to guide you through your next auction day.

 

Now that you know what a yellow light vehicle is, you can learn more about our entire light system.