What Should Buyers Expect From an Auto Auction Arbitration?

When buying at an auto auction, the last thing you want to do is spend time and money on a misrepresented vehicle’s repairs. Arbitration can seem stressful, and you may be discouraged from applying for arbitration if you are worried about the outcome. 

At Big Valley Auto Auction, we consign over 500 vehicles weekly and sell over 15,000 cars annually. We understand submitting your first arbitration can be intimidating if you haven't needed one in the past. This article will provide how Big Valley Auto Auction’s Arbitration services work and what to expect when submitted. 

We will take an in-depth look at the 6 questions below that we find are most commonly asked. Our goal is for you to be able to make an educated decision about whether your vehicle qualifies or not:  

1. What is Arbitration at Big Valley Auto Auction?
2. What are the Requirements for Arbitration at Big Valley Auto Auction?
3. What is an Undisclosed Mechanical Arbitration?
4. What is a Title Arbitration?
5. How do Buyers File for Arbitration at Big Valley Auto Auction?
6. What are the Outcomes of an Arbitration?

Are you ready? Let's dive in!

What is an Arbitration at Big Valley Auto Auction?

Arbitration is a process that resolves a dispute between a Buyer and a Seller. This allows Buyers to contact the Auction with a purchase they feel was not represented properly at the time of sale. The issue is presented to the Arbitration team, and the investigation begins.

Big Valley Auto Auction aims to promote fair and ethical treatment to the Buyer and Seller. If the auction determines a transaction is unfair or unethical, the Buyer and Seller agree that Big Valley Auto Auction acts as a neutral third-party arbitrator to resolve issues with the sale.

What are the Requirements to file an Arbitration?

Arbitration begins with the color of the light a vehicle is run under and any announcements made at the time of sale.  If you feel like a vehicle you purchased was not accurately represented by the Seller or has undisclosed issues required by the vehicle’s light color, you may have an arbitration case.

Depending on the light the vehicle ran under, an undisclosed issue could be frame damage or a mechanical issue. For example, your vehicle may be eligible for arbitration if it was purchased on a Green Light and has an undisclosed oil leak that costs more than $600.00 to repair. Electrical issues, unannounced title brands,  late titles, and mileage discrepancies are also grounds for arbitration.

Big Valley Auto Auction does not arbitrate for the following:

• Ford 5.4L Engines, 
• Nissan 2.5L, 
• Cold start-up engine noise, 
• CVT transmissions.
• BVAA reserves the right to arbitrate these units in cases that are excessive, inoperable, and unsafe.

What is an Undisclosed Mechanical Arbitration?

Green Light Vehicle Arbitration:

If you purchase a Post Sale Inspection for Green Light Vehicle, you have 7-days to file an arbitration for any single undisclosed issue with a repair cost over $600.00

Green Light vehicles without a Post Sale Inspection will receive a limited guarantee per NAAA guidelines. NAAA offers 7 days to arbitrate a vehicle for flood damage and frame damage. 

Exceptions to this rule are Title Arbitrations.

Please refer to the NAAA Guidelines below for clarification.

Yellow Light Vehicle Arbitration:

If you purchase a Post Sale Inspection for a Yellow Light vehicle, you have 7 days to file an arbitration for any single undisclosed issue with a repair cost over $600.00.

Yellow Light Vehicles without a Post Sale Inspection are only able to be arbitrated until 5:00 pm on Auction Sale Day for any single undisclosed issue with a repair cost over $600.00

Exceptions to this rule are Title Arbitrations.

Please refer to the NAAA Guidelines below for clarification.

Green Light/ Yellow Light with a 7-Day Seller Guarantee:

Green Light and Yellow Light vehicles with a 7-Day Seller Guarantee are not eligible for Post Sale Inspection but are eligible for a Frame Check Inspection.

If you purchase a Frame Check inspection for a Geen light or Yellow Light with a 7-Day Guarantee, you have 7 days to file an arbitration for any single undisclosed issue with a single repair cost over $600.00.

It is important that you promptly inspect these vehicles at your dealership.

Please refer to the NAAA Guidelines below for clarification.

Red Light Arbitration:

Red Light Vehicles are not eligible for Post Sale Inspections but are eligible for Frame Check Inspections.

If you purchase a Frame Check Inspection for a Red Light vehicle, you have a limited guarantee to file an arbitration for particular cases. 

Please refer to the NAAA Guidelines below for clarification.

Red-Yellow Light Arbitration:

Red-Yellow Light vehicles are as-is vehicles and are not eligible for arbitration.

Exceptions to this rule are Title Arbitrations.

What is a Title Arbitration?

Late Title Arbitration:

If a Seller does not provide a title within 30 days of the vehicle's sale date, the vehicle is eligible for arbitration. 

Title Brand Arbitrations:

If a buyer purchases a vehicle and finds out that the vehicle has an unannounced Branded Title, the vehicle is eligible for arbitration. 

Mileage Discrepancies:

Suppose a buyer purchases a vehicle on the block with no announcement of mileage discrepancy and finds out after receiving the title that it has mileage discrepancies. In that case, the vehicle is eligible for arbitration.

Vehicles 2010 and older are exempt from Mileage Arbitration.

How do Buyers File for Arbitration at Big Valley Auto Auction?

If you meet arbitration requirements, you must fill out the Arbitration Submittal Form and provide a detailed reason for arbitration.

Once you fill out the Arbitration Submittal Form, you must submit it to the Big Valley Auto Auction Office or email it to arbitrations@bigvalleyaa.com 

Forms must be received before 5:00 pm on the 7th day, or the arbitration will be invalid.

What are the Outcomes of an Arbitration?

If you file an arbitration and the arbitration is valid, you won’t have to pay the $115.00 arbitration fee and may return the vehicle or consider negotiations.

If you file an arbitration and it is not valid, the sale is considered good, and you will need to pay the Arbitration Fee of $115.00 for mechanical arbitrations.

How is the Outcome Determined?

The outcome is determined by the total cost of the auction's labor rates, the time to complete the repair, and the market price of the needed part. 

Once an Arbitration Submittal Form is received, you will be notified by our arbitration manager within 24 to 48 hours.

In the case of a Mechanical Arbitration, Big Valley Auto Auction mechanics will re-inspect the vehicle to determine if the vehicle was misrepresented and an issue was found to be over $600.00, in accordance with the NAAA Guidelines. 

If you have a title or Milage Arbitration, the Big Valley Auto Auction Titles Team will audit the issue.

Am I ready to submit an arbitration?

In this article, you learned how to file for arbitration and what to expect. Now that you know how to prepare for an auto arbitration, you can determine if your claim is valid based on the qualifications provided. Before you submit an arbitration, learn about BVAA’s Light System to help you identify the types of vehicles you're willing to purchase.

Curious about other types of fees? Learn more at Big Valley Auto Auction Inspection Services: A pricing guide.

For more information, please call us at (956)461-9000 or email us at registration@BigValleyaa.com.

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