Post-Sale Inspection Policy

Effective Date: 5 Aug 2024

SECTION 3: PSI INELIGIBILITY
3.1: GENERAL INELIGIBILITY CRITERIA
3.2: SPECIFIC INELIGIBILITY LIST
3.3: PERFORMANCE MODIFICATIONS
3.4: STRUCTURAL
3.4.1: Structural Damage
3.4.2: Structural Alteration

SECTION 4: PSI INSPECTED COMPONENTS

SECTION 5: FAIL, CLAIM, AND ARBITRATION CONDITIONS
5.1: PASS AND FAIL GENERAL
5.2: CLAIM AND ARBITRATION CONDITIONS

SECTION 6: PSI INSPECTION METHODOLOGIES & NON-ARBITRABLE ITEMS
6.1: SPECIFIC NON-MATERIAL CONDITIONS
6.2: NON-ARBITRABLE I TEMS
6.3: INSPECTION PERFORMANCE

SECTION 7: RESELL DISCLAIM

SECTION 8: RIGHTS RESERVATION

Post-Sale Inspection (PSI) Policy

The Post-Sale Inspection (PSI) is a basic mechanical, structural, and flood inspection that is aligned with
the National Auto Auction Association’s Arbitration Policy. PSI’s are based on the objective and
subjective expertise of Manheim inspectors.
The PSI is conducted at a point-in-time as close to the conclusion of the vehicle sale as possible. This
assessment of the vehicle is a one-time inspection conducted under the vehicle operating conditions at
that time; therefore, it is not feasible to inspect a vehicle in conditions identical to normal day-to-day
operating state. The auction has the right to engage with a third-party vendor of their choosing if a
more specialized inspection is recommended, in agreement with auction, buyer, and seller.
A Seller may, at his or her own discretion and cost, request a PSI to be performed on vehicles they sell.

Section 1: PSI Guarantee

The Inspected Components of a vehicle that passes PSI inspection criteria will come with a 7-day or
14-day guarantee of function or condition, based on the PSI product purchased. A list of covered
components is provided in Section 4.
The PSI guarantee is non-transferable and void if the vehicle is resold during the guarantee period.
Vehicles submitted to arbitration under a PSI must have 200 miles or less accumulated on the
odometer between the time the odometer reading is recorded at the auction and the claim date.
Manheim performs these inspections on a good faith basis and stands behind these passed
components, whether Manheim provides this guarantee directly or in agreement with the seller. If
an inspected component is found defective during the guarantee period, Manheim reserves the
right to remediate valid claims estimated at auction wholesale repair costs.
In the event of a valid claim for defect related to an Inspected Component that was not identified by
the PSI, Manheim will reimburse expenses incurred by the Buyer (excluding profit, commissions, and
detail charges) on vehicles arbitrated. The amount of reimbursement that qualifies under these
guidelines will be at the sole discretion of Manheim and will be limited to reasonable and
documented expenses at auction wholesale repair cost.
Notwithstanding anything herein to the contrary, the seller remains liable for issues that fall under
required disclosures and timelines as per NAAA and Manheim Marketplace policies. Therefore,
arbitration with the seller may occur as this policy does not protect or absolve the seller from their
responsibility to properly disclose their vehicles.

Section 2: PSI Eligible Vehicles

The following vehicles sold through Cox Automotive U.S. Marketplaces are eligible for PSI:

Green light vehicles (Ride & Drive) less than 125,000 miles
Green & Yellow light vehicles (Ride & Drive with Caution) less than 125,000 miles
- Items disclosed by the seller will not be inspected and/or guaranteed under PSI
Vehicle Purchase Price over $3,000

It is at the auction’s discretion to make the determination if the vehicle is eligible for PSI.

Section 3: PSI Ineligibility

3.1: General Ineligibility Criteria

The following vehicles sold through Cox Automotive U.S. Marketplaces are ineligible for PSI:

Vehicles sold with mileage equal to or over 125,000
Vehicles sold with a price of $3,000 or under
Vehicles sold with purchase price or with an estimated MMR above $75,000
Vehicles sold in the TRA sales lane, Specialty Sale units, Motorcycles or sold under Yellow light (Limited Guarantee)
Vehicles sold As-Is or deemed automatic As-Is per NAAA policy and Manheim policy
- Kit vehicles
- Recreational vehicles
- Watercraft
- Homemade vehicles
- Vehicles with major modifications (including items in Sections 3.3 and 3.4)
Vehicles 20 years or older (Antique vehicles)
Vehicles that have been removed from the Manheim facility
Vehicles past purchase windows below:
- 5 PM for auctions that start prior 9:30 AM
- 3 hours post auction end for all other auctions
- 3 hours post acceptance on if bids
- 24 hours after vehicle purchased on OVE
OVE offsite vehicle purchases not transported to a Manheim facility for processing
Vehicles with branded titles or defects that are eligible for a branded title, including, but not limited
to: flood damage, salvage, rebuilt, lemon-law or trade-assist buybacks, TMU, et al.
All electric vehicles
Heavy Duty Trucks & Heavy Equipment categorized in Class A and B with Gross Vehicle Weight
Rating (GVWR) of 26,000 pounds or heavier:

Box trucks, such as:

‒ Delivery drivers
‒ Couriers
‒ Furniture delivery

Trailers:

‒ Tractor-trailers
‒ Tractor-trailer buses
‒ Truck and trailer combinations
(Double and triple trailers)
‒ Livestock carriers

Large buses, including:

‒ City buses
‒ Tourist buses
‒ School buses
‒ Segmented buses

Trucks:

‒ Straight trucks
‒ Dump trucks with small trailers
‒ Flatbeds

Tanker vehicles

Current or former armored and/or military /
national defense vehicles

3.2: Specific Ineligibility List

Exotic and/or handmade vehicles (including but not limited to):

AMC H1

Dodge Viper

Mercedes G Wagon

Acura NSX

Ferrari

Mercedes SLR models

Aston Martin

Fisker

Mitsubishi Lancer Evo

Audi R8

Ford GT

Nissan GT-R

Bentley

Lamborghini

Panoz

BMW Alpina

Lotus

Porsche 911

BMW i8

Maserati

Rolls-Royce

DMC 12

Maybach

Subaru WRX

Dodge Demon

McLaren

Tesla

Vehicle makes that average an annual production rate at or below 4,000 vehicles within the three
most recently completed production years

3.3: Performance Modifications

Per section 3.1, vehicles with certain modifications are ineligible for PSI. Examples of certain
modifications include but are not limited to:

Modifications that impact the safety of the vehicle
Computer and electrical modifications
- Including but not limited to computer chips and tuners
  - These modifications will deem a vehicle ineligible for PSI
  - If found during the inspection all portions modified and or related to the
    modifications will cause the inspected vehicle to fail the PSI
Physical parts modifications
- Including but not limited to turbos, catalytic converter deletes and/or replacements, and
  EGR deletes, high performance or racing alterations
  - OE/OEM approved modifications will not affect the eligibility of a vehicle for PSI
  - Non-OE/OEM approved modifications are deemed ineligible for PSI
If found during the inspection all portions modified and or related to the
modifications will cause the inspected vehicle to fail the PSI
- Inoperable, missing, or altered emission control equipment components that change or
  disable its function as intended by the manufacturer will cause a vehicle to fail PSI

3.4: Structural

Structural damage and/or alterations must be announced at auction per NAAA guidelines.

3.4.1: Structural Damage

Definition (per NAAA guidelines): Damage to the structure or a specific structural component of the
vehicle. Often referred to as frame damage, although it also applies to Unibody and Unibody on Frame
structures in addition to Conventional Frame.

All structural damage must be announced via seller disclosure
- A vehicle with announced damage is eligible for PSI
  - Announced damage is not a condition for PSI failure
  - Announced damage will not be protected under PSI coverage
- Unannounced damage discovered during the PSI will cause the inspected vehicle to fail PSI

3.4.1: Structural Alteration

Definition (per NAAA guidelines): An alteration to the vehicle’s structure including a lengthened or
shortened frame, a modified suspension, or the installation or removal of after-market accessories.

All structural alteration must be announced via seller disclosure
- A vehicle with announced alteration is eligible for PSI
  - Announced alteration is not a condition for PSI failure
  - Announced alteration will not be protected under PSI coverage
- Unannounced alteration discovered during the PSI will cause the inspected vehicle to fail the
  PSI

Section 4: PSI Inspected Components

The items checked within the performance of the PSI are:

Odometer verification
Transmission engages and functions
Engine function and operation
Drivetrain
- 4×4 system engagement
- Differential engagement
ABS and brake function
Electrical accessories checked for function (For current model year and up to 4 model years old)
Emission control equipment present (see Section 3.3 Performance Modifications)
- The vehicle will be assessed to meet the emission standards in the state or county in which
  the PSI is performed
Air conditioning checked for operation
SRS (supplemental restraint system/airbags) check
Structure checked
Flood inspection

Advanced Driver Assist Systems (ADAS) are not inspected as part of PSI. Per NAAA guidelines, these
systems must be inspected by a qualified 3 rd party outside the auction property.
These systems include but are not limited to the following:

Rear camera
Rear parking sensors
360 camera systems
Blind spot detection
Lane departure warning
Adaptive cruise control
Collision warning
Lane keep assist
Backup Assist
Autonomous driving function

Section 5: Fail, Claim, and Arbitration Conditions

The PSI purchase is subject to the following:

The buyer is responsible for the PSI fee regardless of vehicle pass or fail
The sale of the vehicle is NOT contingent upon the availability of the PSI
PSI failures are determined by NAAA arbitration policy and follow the NAAA repair or replace
threshold for in-lane purchases

5.1: Pass and Fail General

The auction will make the final determination if the PSI is deemed a pass or fail
A failed PSI results when the inspected components of a vehicle meet NAAA Arbitration Policy
criteria or state or local government safety regulatory criteria, or Manheim policy criteria, which
make the vehicle eligible for arbitration. In such event:
- The Buyer has the option to enter the arbitration process and:
  - Complete the transaction on mutually agreeable terms with the seller with the sale
    completed as “Buyer Bought”
    - Per NAAA Arbitration Policy: “If price adjustment is made and accepted,
      vehicle becomes “As-Is, No Arbitration” property of the Buyer, and is not
      subject to any further arbitration. The auction management makes the
      binding decision upon both the Buyer and Seller on all arbitration matters.”
  - Or, complete the transaction with the vehicle in its current state and under no
    negotiated terms with the seller
    - To align with NAAA Arbitration Policy, in this case the vehicle becomes “As-
      Is, No Arbitration” property of the Buyer, and is not subject to any further
      arbitration.
  - Or, void the transaction, with the sale being unwound as “Buyer Withdrew”
- A vehicle that fails PSI and results in a “Buyer Withdrew” status will move back into seller
  inventory. If the seller decides to re-run the vehicle in a future auction, the seller is required
  to repair the vehicle or make the appropriate announcements.

5.2: Claim and Arbitration Conditions

For vehicle purchases, a defect on a vehicle for which PSI was purchased and “passed inspection” is
eligible for claim resolution if:
- A defective component or condition is found within the guarantee period, based on the
  timeframe purchased;
- A defective component or condition is within the scope of the inspection criteria;
- A defective component or condition is estimated to cost at or above the NAAA Arbitration
  Policy threshold to repair or replace, with the estimate based solely on Manheim’s
  wholesale cost.
For defect states noted above, the defect must be eligible for claim resolution with Manheim and
Manheim reserves the right to remediate the claim. Eligible claims are based on arbitral items noted
in the NAAA Arbitration Policy.
Any claim for arbitration under the PSI must be submitted within the guarantee timeframe purchased (defined as the time between the date of completion of the PSI and the date of claim). If a vehicle return is required, the vehicle must be returned within the stated deadline established by the facilitating location in the same or better condition as when sold.
Manheim retains the option to assume ownership of a vehicle at a maximum of 102% of MMR

Section 6: PSI Inspection Methodologies & Non-Arbitrable Items

6.1: Specific Non-Material Conditions

Certain temporary or non-material conditions will not qualify an inspection for failure, such as:

Vehicle scanners returning Yellow (if reason is known)
- Yellow refers to an indicator light associated with an OBDII scanner that suggests:
  - A previously active code(s) cleared prior to inspection
  - A code(s) not active at the time of inspection
Leaks, noise and other items that are generally considered inherent to an inspected vehicle
- Per NAAA guidelines (Section 7.k.), oil leaks that are NOT actively dripping and visible by
  inspection would not require the inspection to fail.

6.2: Non-Arbitrable Items

Inherent conditions based on year, make, model
- Determination will be made using NHTSA.gov, manufacturer guidelines, and other resources
- If the vehicle is purposefully modified after it leaves the auction location, which cause changes to
  the vehicle’s condition from the time of inspection. Such changes will void the PSI guarantee.
Options, accessories, or any items not included in standard base equipment on OEM make model
trim of the vehicle being inspected
Wearable Items
- Definition (per NAAA guidelines): defined as parts of the vehicle that the manufacturer
  recognizes the need for replacement/adjustment during the expected life of the vehicle
  driven the average miles per model year (15k). These items are normally identified in the
  Owner’s Manual for routine check and replacement.

All Suspension

‒ Struts ‒ Coil/ Leaf Spring ‒ Etc

Trailers:

‒ Pads
‒ Shoes
‒ Rotors
‒ Etc.

External engine components

‒ Belts
‒ Hoses
‒ Etc

Misc

‒ Ball joints
‒ Bushings

Items with manufacture defined life
expectancy

Fluids/ lubricants
Wipers
Tires

Subject to change based on related changes to the marketplace

6.3: Inspection performance

Manheim performs its inspections based on NAAA and industry best practices, with the following
caveats in mind:

OEM-installed under body cladding will not be removed from the vehicle;
Vehicles may not be driven at speeds high enough to simulate all driving conditions;
Vehicles will not be driven for long durations to simulate extended driving conditions.
Note that buyers of PSI are encouraged to discuss the results with the PSI facilitating location.

Section 7: Resell Disclaim

If arbitration results in a sale being unwound based on a failed PSI, the seller shall either repair or
disclose the results of the failed PSI when re-running the vehicle at Manheim. Failure to do so may
result in seller being held responsible for reimbursement of any subsequent failed PSI for such vehicle.

Section 8: Rights Reservation

Manheim reserves the right to modify, alter, discontinue or terminate this policy at any time for any reason whatsoever, with or without notice. In addition, Manheim reserves the right to decline to offer this service to any person or entity at its discretion