POLICY UPDATE
EFFECTIVE JUNE 1, 2026

Every year, the National Auto Auction Association (NAAA) updates its arbitration guidelines to support a more consistent and transparent wholesale marketplace. The latest revisions take effect June 1 — and Manheim is ready.

1.  New arbitration threshold for high-value vehicles

For vehicles selling at $50,000 or more, NAAA is introducing a graduated arbitration threshold. Beginning June 1, each individual defect must meet a minimum repair or replacement cost of 2% of the purchase price to be considered for arbitration.

For vehicles under $50,000, nothing changes — the $800 minimum threshold remains in place.

Example Purchase Price 2% Threshold Minimum Per Defect
$50,000 2% $1,000
$75,000 2% $1,500
$100,000 2% $2,000

Note: Multiple defects can still be submitted together, but each must independently meet the threshold.

What this means for Manheim clients:
Manheim will retire our $75K High Value Arbitration policy and fully align to NAAA standards—creating a consistent approach across all auctions.

2.  Stronger expectations around seller disclosures

NAAA is reinforcing expectations around how sellers communicate vehicle condition, with a continued push away from vague announcements that don’t clearly represent what a buyer is purchasing.

Statements like “No Arb for Oil Leaks” will no longer be sufficient on their own and will not protect a seller from arbitration. Manheim began moving in this direction on April 1, giving sellers time to adjust well ahead of the June 1 effective date.

SELLERS

Use accurate sale light designations, detailed condition notes, or Red Light / As-Is announcements where appropriate. NAAA recommended announcements and/or specific disclosures are your best protection.

BUYERS

Expect more consistent, useful information when evaluating vehicles — making it easier to bid with confidence.

The Bottom Line

These updates align arbitration standards more closely with today’s vehicle values and reinforce the value of clear, upfront disclosures and communication. For most Manheim clients, the transition should feel seamless — these are practices Manheim has already been building toward, now backed by a consistent, industry-wide standard.

Want to see the full list of NAAA updates? Read the complete guidelines →