NAAA Policy Changes - Client Awareness
New NAAA policy updates will be I effect as of April 3.
The digital arbitration policy is not the only portion that changes so please review all the NAAA policy changes. CTA: View full policy at NAAA.com. Metro Dallas digital arbitration policy will shift to a flat 10 days from the original sale day, this comes as NAAA announced a minimum 7-day digital arbitration window in their updated policy guidelines. The in-lane arbitration policy remains “Sale Day Only”. The new policy ensures buyers have a greater confidence and peace of mind in transacting through digital channels.
Additional details on the changes are provided below. Please refer to the NAAA policy for more information
Arbitration Dollar Threshold – Minimum Dollar Amount Increases from $600 to $800.
Online Arbitration Timeline – 2/10 Rule – 2 Day Bill of Lading provision is removed and industry minimum standard is introduced.
Revised NAAA Policy: “Online – Minimum industry standard = 7 calendar days. Timeframe may be extended per local auction policy.”
Metro Dallas policy will exercise the “local auction policy” provision and will provide a flat 10 days of arbitration coverage for Digital transaction (Simulcast, OVE).
Timelines for History Items – Increase arbitration time to 30 days for most critical “History” items. This will align with historical items that are non-mechanical. The new 30-Day items would include:
Not Actual Miles/True Miles Unknown
Total Loss and Salvage Retention along with Bonded, Insurance and/or Salvage Titles
Lemon Law/Manufacturer Buyback
Taxis and Livery/Law
Previous Canadian and Grey Market Vehicles
Voided Factory Warranty
As/Is Limited Guarantee – extended disclosure requirements for the following items to include Limited Guarantee and Limited As-Is.
State Issued Vin Plates
Fuel Conversion
Logo or Decal Misrepresentation
Lemon Law Policy – Titles – Adds requirement to disclose any title related contingencies or disclosure requirements.
Vehicle Wraps – Exterior Cosmetic Wraps that exceed 50% of vehicle exterior panels now require announcement.
Not Subject to Arbitration – Provides more clarity on several confusing elements.
Wearable Items – Adds “Other Suspension Parts to list of non-arbitral items (such as brakes, belts, hoses, etc.)
Vehicle Electrical Accessories (for vehicles over 4 years old)
Remove the word “electrical” from policy and specifically define limits on vehicles older than 4 model years (i.e., 2023, 2022, 2021, 2020 model years are arbitral, 2019 and earlier are non-arbitral)
Examples of Vehicle Accessories (Entertainment Systems, Power Windows, Heated Seats, Navigation Systems, Sunroofs/Moonroofs, etc.)
Convertible Tops Position statement to separate from accessories and define as non-arbitral due to their critical function in vehicle safety.
Oil leaks are NOT arbitral unless “fluid is actively dripping and visible by inspection.”
NAAA Position Statements
Position Statement on Chip Shortage
Due to global supply chain challenges and the related impact on new vehicle production, stated options may not be fully operable on certain late model vehicles. Therefore, the lack of functionality due to missing our substituted OEM chips will not be subject to arbitration.
Position Statement on Subscription Services
The auction does not guarantee the transferability of options, equipment or software services that are based on owner or user subscriptions or fee-based agreements (i.e., Auto Pilot, Self-Driving, Satellite Radio, etc.). Furthermore, any required technical or software updates are the responsibility of the Buyer and not subject to arbitration.