Manheim Seller Arbitration Guide
In this guide, you will find answers to the most common questions you may have so you can be fully informed on how you are protected in the Manheim marketplace.
If you have any questions that you are not able to resolve in this guide, please reach each out to your local auction or 866-Manheim and select Arbitration.
INTRODUCTION
This arbitration guide is intended to provide transparency into the complex arbitration process so you can be fully informed on how you are protected with Manheim. Manheim’s Arbitration Services team is dedicated to providing a premium claim resolution experience to our clients, regardless of where your claim originated. Our dedicated experts leverage the shared knowledge provided by our national support system of Manheim arbitrators in order to deliver faster, more consistent and fair processes on decisions and claim resolution. If you have additional questions not addressed here, please contact your local Manheim Auction and speak with an Arbitration Claims Specialist so you can be fully informed of the process and responsibilities of both buyers and sellers. – Manheim’s Arbitration Services Team.
CLAIM PROCESS
Buyers may initiate arbitration on transactions when they believe the sale did not follow NAAA disclosure guidelines. In this section you can find answers on what sellers can expect during the claim investigation. Manheim investigates every claim and works with both parties to find a fair and equitable resolution.
I JUST LEARNED A VEHICLE THAT I SOLD IS NOW IN ARBITRATION, WHAT WILL HAPPEN NEXT?
Your case will be assigned to a Case Specialist who will then contact the buyer and seller to let them know what to expect next.
The typical process will include a verification and validation process that may require a vehicle inspection. Once all information is reviewed and compared to the related disclosures and announcements, the Case Specialist will share the outcome with all parties.
Reference: Manheim Marketplace Policies
IS THERE A LIMIT TO HOW MANY MILES A BUYER MAY DRIVE A VEHICLE AND STILL BE ELIGIBLE FOR ARBITRATION?
Yes, vehicles with an excess of 200 miles over the odometer notation on the bill of sale are not eligible for arbitration.
Reference: NAAA Arbitration Policy
WHAT LABOR RATE IS USED TO CALCULATE MECHANICAL REPAIR ESTIMATES FOR ARBITRATION CLAIMS?
For Arbitration, Manheim’s wholesale labor rate is $95* per labor hour (per Mitchell or Alldata).
Note: This is the rate used to determine whether the issue is arbitral or not. There may be slight regional differences in the ultimate repair price due to changing market conditions.
* Manheim locations in California use $115 per labor hour for Arbitration estimates.
Reference: Arbitration Estimate Process
DO YOU CONSIDER USED PARTS PRICING WHEN COMPLETING ARBITRATION REPAIR ESTIMATES?
No, Manheim typically uses standard quality or grade aftermarket parts. OEM parts will only be considered if there is no aftermarket equivalent. However, in the event of missing or damaged non-mechanical equipment, we may consider a used part as a reasonable substitute.
Reference: Arbitration Estimate Process
ARE TRANSPORTATION COSTS REIMBURSABLE TO THE BUYER FOR SUCCESSFUL AND VALID ARBITRATION CLAIMS?
Yes. Reasonable transportation costs are subject to reimbursement by the Seller in a successful arbitration claim.
Reference: NAAA Arbitration Policy
POLICY
Transactions conducted with Manheim are upheld to the standards laid out in the NAAA standards. It is critical to understand the policies that govern Manheim auctions so that you can be fully informed of your rights and responsibilities when you participate in the marketplace.
HOW MANY DAYS DOES A BUYER HAVE TO ARBITRATE IF THEY BUY ONLINE?
Manheim policy exercises the NAAA “local auction policy” provision and provides 10 calendar days of arbitration coverage for Digital transactions (Sale Day is Day 1). This includes units purchased via Simulcast and/or OVE.
Reference: NAAA Arbitration Policy
WHAT CAN A BUYER DO IF A SELLER MISSTATES MILEAGE ON AN OVE OR MANHEIM EXPRESS LISTING?
Buyers may arbitrate vehicles sold on OVE or Manheim Express if the Seller’s disclosed mileage is understated by more than 200 miles.
Reference: Policy for OVE and Manheim Express
ARE SELLER’S ALLOWED TO OFFER A GUARANTEE ON VEHICLES SOLD FOR $3,000 OR LESS?
Yes, a Seller may offer these vehicles with a Limited Guarantee announcement.
Reference: $3,000 and Under Arbitration Policy
DO ANNOUNCEMENTS SUCH AS “ENGINE LIGHT OVER $800” EXEMPT THE SELLER FROM ARBITRATION?
No, the specific defect should be announced.
Reference: NAAA Arbitration Policy (Section 3, paragraph 6)
DO “ALTERED EMISSIONS” OR “ALTERED EXHAUST” EXEMPT A SELLER FROM ANNOUNCING MISSING EMISSION COMPONENTS? (I.E. CATALYTIC CONVERTERS)?
No, specific announcement required for missing emission components.
Reference: NAAA Arbitration Policy (Appendix I)
CAN WE SELL A VEHICLE IN KILOMETERS?
No. All vehicles must show miles per hour on the speedometer and miles traveled on the odometer.
Reference: NAAA Arbitration Policy (Section VI)
CAN WE SELL A PROPERLY IMPORTED AND CONVERTED FORMER CANADIAN VEHICLE?
Yes, “Previous Canadian” disclosure is required for any vehicle (regardless of manufacturing origin) having been registered in a Canadian province. Additional announcements may be required as well due to the use in Canada (i.e. Full or partial voided warranty)
Reference: NAAA Arbitration Policy (Section VI)
CAN A BUYER ARBITRATE FOR UNDISCLOSED STRUCTURAL DAMAGE IF THE CAR SOLD FOR $3,000 OR LESS?
No. Vehicles selling for $3,000 or less are only subject to arbitration for odometer issues (present and history) and title issues (present and history) unless announced as “Limited Guarantee”. If announced as “Limited Guarantee”, Buyers may arbitrate for defects that the Limited Guarantee covers as per the NAAA Arbitration Policy Appendix 1.
Reference: $3,000 and Under Arbitration Policy
WHAT DOES DRIVABLE MEAN ON A CONDITION REPORT?
DRIVABLE: This limited condition indicates a vehicle could or could not start and move forward when the condition report was completed. This is not an announcement/ guarantee of road worthiness or likelihood to remain DRIVABLE.
Reference: Manheim Marketplace Policies
WHAT ARE SOME EXAMPLES OF “WEARABLE ITEMS”?
Tires, wipers, brake pads, shoes, rotors, belts, hoses, lubricants/fluids, timing belts, bulbs, filters, suspension components, shocks, struts, etc.
Reference: NAAA Arbitration Policy
CAN YOU ARBITRATE FOR A SUNROOF OR CONVERTIBLE TOP THAT DOESN’T WORK?
Sunroofs are accessories and not subject to arbitration after four model years while convertible tops are integral to the function of a convertible vehicle and are, therefore, arbitral.
Reference: NAAA Arbitration Policy (Section VII, paragraph 4-j)
WHAT DOES THE ANNOUNCEMENT “VEHICLE WRAP” OR “WRAPPED VEHICLE” COVER RELATIVE TO ARBITRATION?
This announcement alerts the buyer that more than 50% of the exterior panels are covered by vinyl or other similar coatings. Due to this wrap, cosmetic defects may not be visible to the auction or buyer. Therefore, defects covered by the wrap are not subject to arbitration.
WHAT DO THE DIFFERENT SALE LIGHTS MEAN? GREEN, YELLOW, RED?
Reference: NAAA Arbitration Policy
TITLES
Arbitration includes specific policies relating to vehicle titles. This section provides further detail pertaining to titles at auction.
DOES THE 200-MILE ARBITRATION LIMIT APPLY FOR VEHICLES RETURNED FOR LATE OR NO TITLE?
No, however, the vehicle must be returned in the same or better condition (separate from the mileage) and the Buyer may be subject to excessive mileage charges.
FOR LATE TITLE ARBITRATIONS, DO WE CHARGE FOR EXCESSIVE MILES DRIVEN ON LATE TITLE RETURNS?
Yes. Buyers may be assessed a penalty for excessive mileage for any vehicle returned with more than 500 miles above what is noted on the Bill of Sale.
Reference: Excessive Mileage Guideline
IF AN ABSENT OR LATE TITLE CLAIM IS FILED, WHAT TIME PERIOD IS ALLOWED FOR THE SELLER TO PRESENT THE TITLE TO THE AUCTION?
Once a Buyer files a claim or notice to return a vehicle, the Seller has until the end of the “next business day” to provide the title to the auction.
Note: Title claims filed after 3:00 PM (local auction time) will not be processed or acknowledged until the following business day.
Reference: NAAA Arbitration Policy (Section IV, paragraph 9)