Terms and Policies will be updated July 1, 2019.
Vehicle Condition Arbitration Policy
Purpose of the Arbitration Policy
Transparent and Fair Resolution Process.
ACV Auctions strives to create an arbitration experience that
is transparent and fair for both the buyer and seller of vehicles
through the ACV platform. In the event a concern arises with regard to
the vehicle condition, the buyer and seller agree to resolve such
concern through ACV’s arbitration process, and ACV agrees that it will
strive to find a fair resolution to all legitimately brought concerns
that are covered by this policy. In the event of any conflict between
this policy and Federal, State, and Local laws, such laws shall
supersede these policies where applicable.
ACV Auctions’ Role in Sale of Vehicles:
Notwithstanding ACV Auctions’ inspection of any vehicle,
ACV Auctions makes no representations or guarantees regarding
any vehicle sold or offered for sale.
ACV Auctions is not a party to the sale. The sales contract, the
bill of sale, and notwithstanding ACV Auctions facilitation
thereof, the title transfer is between the seller and buyer
only. ACV Auctions title policy may be viewed at
How and When to Use the Arbitration Process at ACV Auctions
If a buyer has received a vehicle that has an undisclosed issue that
is covered for arbitration under this policy, the buyer may notify ACV
by contacting through the ACV Auctions application. If the buyer is
unable to access the arbitration process through the application, it
may also reach out by email to email@example.com or by
phone at 716-796-6976 (choosing the arbitration option) within the
designated timeframe. ACV will investigate the claim made by the
buyer and determine the appropriate resolution, if any.
Buyer will have 10 calendar days from the date of purchase to raise
any and all concerns about vehicle condition. The date of purchase
counts as day 1 for the purpose of calculating this timeframe. However,
if the buyer uses the transportation services available through
ACV Auctions or its subsidiaries, buyer will have the greater of
10 calendar days from the date of purchase or two calendar days
after the date the vehicle is delivered to buyer to raise
concerns through the arbitration process. Buyer may, at the
time of auction, purchase an extended arbitration option for any
given vehicle which would give the buyer either an additional 10
or 20 calendar days, depending on the option purchased, during
which to request arbitration with regard to the applicable vehicle.
In order to fully investigate the claim regarding vehicle
condition, ACV Auctions may require the buyer to provide evidence of
the claim and assist in diagnosis of any condition issues within
a specified timeframe, in order to determine the best resolution.
This may include the buyer:
submitting photos or other evidence of the vehicle condition to
ACV Auctions within two (2) calendar days of the request,
taking the vehicle to a third party diagnosing facility
designated or approved by ACV Auctions and providing evidence
of such facility’s receipt of the vehicle,
permitting an ACV Auctions vehicle inspector or third party
inspector to inspect the vehicle on the buyer’s lot, or
other potential evidence as requested.
If the buyer is unable or unwilling to provide the requested
evidence of the vehicle condition within the timeframe requested,
ACV Auctions will close the arbitration related to such vehicle and
the buyer will not be permitted to reopen the arbitration.
ACV Auctions makes the final binding decision upon both the buyer
and seller on all arbitration matters.
Possible Resolutions to Arbitration.
Resolutions to an arbitration may include payments or credits to
the buyer to cover, at ACV Auction determined wholesale rates, parts
and labor to repair covered vehicle condition issues as set forth in
this policy, the cancellation of the sale, potential resolution
without further action, or other resolutions in the discretion of
ACV Auctions. ACV may determine that payment for parts and labor
expenses, at wholesale rates, associated with any arbitration claim
is appropriate before the deal can be cancelled. ACV also reserves
the right to cancel a sale rather than determine that payment should
be made for parts and labor expenses. In each case, the buyer and
seller agree that ACV will make the decision in its sole discretion.
One Arbitration Only.
The buyer should inspect the vehicle upon delivery and determine all
issues or concerns with the vehicle and notify ACV Auctions of all
vehicle condition issues at the same time. Once an arbitration for
a given vehicle has been completed and closed by ACV Auctions, no new
concerns may be raised by the buyer for arbitration related to
If Reparation is made to the Buyer.
If a price adjustment is made, or a credit or repair payment is made
to the buyer, the vehicle becomes “As-Is, No Arbitration” property of
the Buyer, and is not subject to any further arbitration.
If a Sale is Cancelled.
In the event ACV Auctions determined that cancellation of the sale is
the appropriate resolution after the vehicle has been delivered to
the buyer, ACV or the seller, in ACV Auctions’ discretion, will
transport the vehicle to another location. The buyer will be
responsible, at its own cost, for the safety and security of the
vehicle until it can be transported from the buyer’s lot.
What Can Be Arbitrated (Vehicle Condition).
In order for the buyer to request arbitration and to be
eligible for reparation based on the vehicle condition, each of the
following criteria must be met:
The defect or concerning condition was not disclosed in the
condition report, in a CARFAX report, or otherwise by the
seller or ACV Auctions;
A single mechanical defect with a repair cost in excess of $500.
The cost of the repair is determined by ACV Auctions based on
wholesale dealer cost, which means used,
remanufactured, and/or aftermarket parts as well as a wholesale
labor rate of $85.00 for gas vehicles and $100 for non-gas vehicles.
This minimum does not apply for cosmetic damage that was not
disclosed to the buyer; and,
The defect is not included in the list of items in this policy that
are not eligible for arbitration.
What Cannot Be Arbitrated (Vehicle Condition).
The vehicle should not be brought for arbitration
and will not be eligible for any reparation in the event any of the
following are applicable:
Kit vehicles, homemade vehicles, non-factory add on parts, and
modified vehicles are sold “As- Is” and cannot be arbitrated
The vehicle makes noises or demonstrates conditions that are inherent
or typical to a particular model or manufacturer, unless
deemed “excessive” by the diagnosing dealership on non- warranty
items. OEM dealer warranty guidelines will be used to determine
whether the condition is excessive.
The issue with the vehicle is related to wearable items, regardless
of repair cost. For purposes of this policy wearable items would
include, but are not limited to: tires, wipers, brake pads, shoes,
rotors, belts, lines & hoses, seals & gaskets (except head gaskets
with an active dripping leak), lubricants/fluids, spark plugs &
wires, ignition coils, timing belts, bulbs, filters, shocks &
struts, suspension, exhaust and standard transmission clutches.
Vehicles may not be arbitrated solely on Electronic Vehicle History
Data (EVHD). Examples of EDVH include CARFAX, AutoCheck, NMVTIS, etc.
ACV Auctions only verifies CARFAX reporting. However, ACV Auctions
may investigate EVHD based on information found in CARFAX for
information that may impact arbitration.
The vehicle has more than 300 miles more than the odometer
reading listed in the auction at time of sale.
If a disclosure is made about any component or part of a vehicle,
such component or part is not able to be arbitrated.
ACV will not arbitrate any installed Plow, 5th wheel hitches
or towing packages.
Mileage cannot be arbitrated for vehicles that are 10 years or older
and/or deemed exempt from odometer and title disclosure laws. Note
that a buyer may arbitrate mileage discrepancies for these vehicles
where the seller disclosure of mileage differs from the actual odometer
Vehicle accessory electrical defects on vehicles 4 model years old
Title discrepancies must be disclosed by the seller including, but
not limited to: not actual miles, salvage, theft recovery, stolen
vehicle, flood damage, gray market, replica, Lemon Law buybacks and
trade assist. No vehicles are allowed to be sold through the ACV
Auctions platform related to which there is any title washing that
would cause a title discrepancy to be undisclosed. The seller will
be solely and fully liable for any damages associated with title
Seller must be the rightful owner of the vehicle and may not sell any
vehicle owned by a third party through ACV Auctions.
Seller must ensure that all vehicles listed for sale must have a
public Vehicle Identification Number (VIN) plate attached to the
Disclosures are required for any matters that are required to be
disclosed under local, state or federal statutes or regulations.
Disclosures must be made by the seller to ACV Auction’s vehicle
condition inspector to be included in the vehicle condition report
Even if the vehicle is covered by a manufacturer’s warranty, the seller
is still responsible to disclose any known defects.
In the event of a successful arbitration by the buyer, the seller is
responsible for reimbursement of the amounts determined by ACV Auctions
to cover expenses for parts and labor associated with repair of
vehicles arbitrated for undisclosed conditions. In the event the
transaction is cancelled based on the arbitration, the seller will
be responsible at its cost to transport the vehicle from the buyer’s
For arbitrations occurring after the seller has been paid, seller is
required to promptly return the payment to ACV Auctions if the
transaction is cancelled as a result of arbitration.
Sellers must disclose the following. Failure to disclose the following
may result in an arbitration related to these issues and reparations
being made by the seller to the buyer, or possible cancellation of
permanent structural damage, any structural alterations,
structural repairs or replacements (certified or non- certified).
After-market accessories installed to or removed from the
Towing packages installed (or removed) where new holes are
drilled, manufacturer’s holes are enlarged, or if the towing package
is welded or brazed to the structure.
Multiple access holes (regardless of size) or singular access
holes greater than 5/8". Access holes between 1/4" and 5/8" are
subject to disclosure based upon location and condition of
Corrosion of structural components which result in a perforation
in the frame.
Structural tear damage (i.e. transport tie down) if more than 1"
in length (measured from tear start/stop points).
Any defects or damage that are “visible” or “cosmetic” in nature.
Any vehicles having a reassigned VIN plate by the State in place
of the original VIN plate.
The Seller must disclose accurate odometer reading, inoperative
Odometer / TMU
Mechanical defects in excess of $500 per item.
Vehicle accessory electrical defects in excess of $500 per item
on vehicles 4 model years old or less.
Vehicles not equipped with A/C.
Paintwork (bumpers and brush touches not included).
Voided factory warranties.
Salvage vehicle, (including current title or history REPORTED BY
CARFAX ONLY), previous Taxi, Livery and Emergency vehicles.
Flood Damage current or history (including documented by DMV
or Insurance Company).
Missing Catalytic Converters.
Buyer will inspect the vehicle immediately upon arrival at Buyer’s
location. The Buyer must verify the Seller’s representations and
promptly notify ACV Auctions of any discrepancies within the time
frame as stated in this policy. Buyer will verify odometer reading
upon arrival at Buyer’s location. The mileage on the odometer must
be the same as when the vehicle was purchased, as set forth in the
bill of sale, if the buyer wants to arbitrate related to an inoperable
Prior to making an offer to buy the vehicle through ACV Auctions, the
buyer is responsible to review all condition reports, pictures,
and disclosures made available by the Seller and ACV Auctions.
Buyers are also responsible for observing and understanding the sale
lights (Green, Green/Yellow, Red, Red/Yellow and/or Blue), which are
a non-binding, subjective indicator of the various sale conditions
for the vehicle.
If the buyer makes any changes to the vehicle pending completion of
arbitration, or before receiving title to the vehicle, the buyer shall
be liable for any and all work done to the vehicle and any result
thereof. Buyer shall not sell the vehicle before it receives title
to the vehicle. Neither seller nor ACV Auctions shall be liable for
any vehicle sale or repairs made by the Buyer before the title is
received by the Buyer.
The buyer is financially responsible and assumes all risk of loss on
the vehicle from the point of pick up (by the buyer or its agent) or
delivery (by third party transporter) until arbitration is final.
The Buyer or Buyer’s agent (transporter or driver) must document any
damage at the time of pick-up prior to removing the vehicle from
its location. ACV Auctions and the seller will not be responsible
for any damage not identified in writing as of the time of
pick-up of the vehicle once the vehicle is removed from the location.
The buyer will not have any repairs performed prior to ACV Auctions
validating the claim. Cost for any repairs performed prior to
validation of the claim will not be covered by arbitration.
ACV vehicle condition inspectors drive the vehicle around the
seller’s lot, but the vehicles are not tested at road speeds,
and provide an on-site lot visual inspection of the vehicles
listed through ACV’s platform, including exterior, interior,
undercarriage and frame (without lifting the vehicle).
Additionally, a mechanical inspection includes checking the engine
oil and coolant, starting and running the engine, and driving the
vehicle in the lot to test the functionality of the transmission by
getting the transmission into first gear and reverse.
Although ACV may disclose the same issue on different vehicles in
different ways, if an issue is disclosed in any manner, it will
not be eligible for any reparations through arbitration.
As a professional used car buyer, you can expect that the cars
you buy on ACV may have some of the imperfections listed below
and may need any or all of the following services performed to get
them into retail-ready condition. Although we may not disclose all
of these items in the condition report, it should be considered
normal and reasonable for any wholesale auction purchase, and
therefore, these issues are not subject for adjustment.
Interior and exterior cleaning and detailing to remove dirt,
dust, grime, stains, smells, pet hair, gum and food residue.
Wet-sanding and buffing to remove surface level scratches
and blemishes on the exterior body and paint.
Seepage that is not considered an active dripping leak.
Reconditioning or replacement of fogged or hazed headlights,
fog lights, or tail lamps.
Non-functioning proximity sensors and lane detection sensors.
Repair of any and all aftermarket accessories.
Removal of decals, bumper stickers, vehicle wraps, and window
tint, and any subsequent paint damage that could occur from
Power seat functions including lumbar, heated & ventilated,
memory, power tilt/telescoping steering wheel and steering
wheel controls, power mirrors including defrost, and
Keys that are a combination key/fob, it may need a battery or
dealer programming. Only one key that starts and unlocks the
vehicle manually may be provided. Any duplicates will need to
be made by the buyer.
Issues that can be remedied by utilizing existing manufacturer
warranty need to be resolved through that process.
Light Indicator System for ACV Auctions.
ACV Auctions’ light indicators for vehicles sold through its platform
are described below. This light indicator system is used as a high-level
indication of the basic condition of the car, but the buyer is
responsible for reviewing the condition reports, pictures, disclosures,
and other information provided by the seller and ACV Auctions to
accurately determine the condition of the vehicle before making a
purchase decision. Please note that ACV Auctions’ light indicator
system is different from those used by other companies, and a buyers
will not be permitted to arbitrate a vehicle solely based on the light
indicator used with any given vehicle.
Green Light –
A green light indicates that the vehicle’s basic mechanical system
and frame are all in proper functioning condition unless otherwise
disclosed. Please note that the use of a green light indicator
does not mean that the vehicle is without any defects or issues.
If a defect or other issue is not disclosed to the buyer, the
buyer may request arbitration from ACV Auctions to seek
reparations related to such defect or issue pursuant to this policy.
Yellow Light –
A yellow light indicates that the vehicle has one of the defects
identified below. The defect will be disclosed as part of the
disclosures made to the buyer in the condition report, pictures,
or other disclosure available through ACV Auctions’ platform.
When a yellow light is present, it will be coupled with either a
green light or a red light, and is intended to call the buyer’s
attention to one of the defects listed at
Red Light –
A red light indicates that the vehicle is being sold AS-IS and may
be arbitrated for vehicle condition only if, in addition to the
other criteria set forth in this policy, it has undisclosed salvage
title, current or prior structural damage or TMU (True Mileage
Unknown). Title may be arbitrated on a red-light vehicle only if it
has non-transferable or branded title, or if it has undisclosed
Blue Light –
A blue light indicates that a vehicle is being sold with the title
absent. A transferable title does NOT accompany the vehicle, and the
Seller has 30 calendar days (or in California, 45 calendar days) to
provide a transferable title to ACV Auctions.
Go GreenTM Policy and Practices
ACV Auctions offers to certain sellers a Go Green program which, if
the seller chooses to participate in such program and ACV Auctions
conducts the vehicle inspection, puts together the vehicle condition
report, and the vehicle is a green light vehicle, would revise the
seller’s obligations and responsibilities under ACV Auctions’ vehicle
condition arbitration policy as follows. Any seller that chooses to
participate in the Go Green Program, must pay the associated fee for
every green light vehicle the seller sells on the ACV Auctions
Notwithstanding anything to the contrary in the arbitration policy,
the Go Green program provides the seller with protection against unknown
physical defects in the vehicle that otherwise might result in either
the cancellation of the transaction or liability for costs for repair.
In return for payment of the fee to participate in the Go Green program,
ACV Auctions will (i) pay to the selling party the full sale price
paid by the original buyer even if the transaction is later cancelled,
and (ii) cover any costs due to the buyer pursuant to the arbitration
policy as a result of an arbitration related to vehicle condition. If
the seller participates in the Go Green program, and a transaction is
later cancelled, the seller will permit ACV Auctions to relist the vehicle
under the seller’s name on ACV Auctions’ platform in order to sell the
vehicle to another buyer. ACV Auctions, having already paid seller for
the vehicle based on the original sale, will retain the proceeds from such
subsequent sale. Under the Go Green program, if the vehicle does not sell
on ACV Auctions’ platform after a cancellation of an original transaction,
ACV Auctions may sell the car in the seller’s name to a recycling center
or other service to remarket or resell the vehicle. While as part of the
Go Green program ACV Auctions assumes the risk of gain or loss on the
disposition of an unwound vehicle, ACV Auctions does not assume
ownership of the vehicle or any other risks from defects, such as
personal injury or property damages resulting from a defect in a
vehicle. A Go Green participating seller agrees to cooperate fully and
promptly as directed by ACV Auctions, at seller’s expense, with transfer
and, if applicable, the resale of the vehicle, including without
limitation providing any updated resale/reassignment documentation
necessary for ACV Auctions to resell the vehicle if the original
transaction is cancelled.
Sellers who participate in the Go Green program will remain fully
responsible for any issues with vehicle titles. If a transaction
is cancelled due to a title issue, (i) the seller shall promptly
return the proceeds from the original sale to ACV Auctions, (ii)
ACV Auctions will not be obligated to relist the vehicle on ACV
Auctions’ platform unless and until the title issue is resolved,
and (iii) the seller shall be responsible, at the seller’s cost,
to remove the vehicle from the buyer’s lot or the applicable
storage facility within ten (10) calendar days after cancellation
of the transaction and if desired, to transport the vehicle back
to seller’s lot, and (iv) seller will be responsible to refund
transportation expenses incurred by the buyer for vehicles
where a title could not be produced within the applicable timeframe.
If an arbitration is based on an undisclosed defect that seller would
have learned about upon reasonable inspection, or an undisclosed defect
that is otherwise known to seller, then, notwithstanding the seller’s
participation in the Go Green program, the seller shall remain liable
for the costs of parts and repair of the vehicle or the refund of the
full payment price to the buyer and return of the vehicle to the
seller’s lot. Further, if seller changes ACV Auctions’ condition
report in any way, or if there is damage to the vehicle or the vehicle
is tampered with after the condition report is written, the seller
shall be responsible for all liability associated with each of the
foregoing. In the event seller engages in fraudulent activity under the
Go Green program (i) seller will be liable for any harm caused thereby,
(ii) the seller will be disqualified from the program, and (iii) ACV
Auctions may seek other remedies in law and in equity. ACV Auctions
reserves the right to refuse participation in the Go Green program
for any seller.
ACV may amend this Arbitration policy (including the Go Green Policy)
at any time and any such amendments will be effective as of the date
the amended policy is posted on the ACV Auctions website unless
otherwise specified in therein.