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Arbitration Validation and Estimate Process

Effective Date: January 1, 2026 

This policy establishes national standards for how arbitration claims are validated and estimates are prepared. It aligns with NAAA Arbitration Guidelines and formalizes longstanding Manheim practices into a single, consistent framework applied across all Manheim marketplaces.

Arbitration Estimate and Validation Policy


Estimates are a critical component of Arbitration and Assurance claims, including post-sale inspections and condition-related disputes. This policy governs the parts standards, labor rates, and inspection methodology applied in Manheim arbitration estimates.


1. Parts Standards

  • Estimates will be written using new, standard quality aftermarket parts where available.
  • OEM (Original Equipment Manufacturer) parts will only be used when no aftermarket equivalent is available.
  • Used parts will not be considered for mechanical repairs. Used parts may be appropriate for certain accessories or body components, as determined by the auction on a case-by-case basis.
2. Labor Rate Standards
 
  • Mechanical repairs: $95.00/hr ($135.00/hr in California)
  • Paint and body repairs: $75.00/hr ($125.00/hr in California)
  • The labor rates outlined above represent Manheim’s standard arbitration rates and may be adjusted at Manheim’s discretion based on local market conditions or national policy.
  • Labor rates used in arbitration estimates are intended to provide a consistent, nationwide methodology for evaluating claims and determining arbitration eligibility. These rates may differ from actual repair costs incurred by the auction, buyer, seller, or repair facility.

3. Inspection and Validation

 

  • Arbitration and Assurance teams will rely primarily on Manheim auction-based inspections and estimates, and/or approved third-party inspection partners designated by Manheim.
  • Second-opinion inspections at OEM dealerships or specialty repair facilities are not guaranteed and are subject to auction and/or arbitration approval.
  • External estimates or inspection opinions do not obligate acceptance by the auction and do not override the auction’s determination.

4. Inspection Partners

 
  • To expedite the validation and estimate process, Manheim has partnered with approved national inspection companies to assist with validating claims.
  • Your claim may be assigned to one of these partners for vehicle inspection and claim validation.
  • Your Case Specialist will provide additional information regarding the third-party inspection process.

All arbitration-related decisions, including estimate methodology, inspection reliance, and approval of additional inspections, are subject to Manheim’s sole discretion.