ACV Buyer's Guide

ACV Buyers Guide

Lights, Disclosures, Limitations & Red Light Arbitrations

What This Is: A clear, concise guide to help buyers understand arbitration eligibility and disclosure standards on ACV Auctions.

What This Isn’t: A replacement for ACV’s posted legal Arbitration terms. Want to dive into the legalese? Click here.

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Auction Lighting System Explained

Each vehicle on ACV is assigned a light color that determines the level of arbitration protection and disclosure expectations:

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🟢 Green Light

A vehicle is subject to arbitration for undisclosed major mechanical, structural issues, and excess wear and tear based on ACV and NAAA Arbitration Policy

🟡 Yellow Light

A vehicle has known issues and the disclosed component is not eligible for arbitration. 

🔴 Red Light

A  vehicle is sold as-is with limited arbitration. Only high-risk, undisclosed issues qualify. (See “Can I arbitrate a Red-Light Vehicle” section below)

🔵 Blue Light

Indicates that the title is not present at the time of sale. Seller must provide title within 30 days (45 days if the Seller is in California).

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What Counts as a Disclosed Condition?

Conditions visible or documented in the listing at the time of sale are considered disclosed and are not eligible for arbitration. This includes:

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Why Excess Wear and Tear Must Be Disclosed

Vehicles are expected to show normal wear consistent with their age and mileage.  However, sellers must disclose any damage that exceeds reasonable expectations regardless of auction light. Excess wear and tear, if not disclosed, may be grounds for arbitration under specific conditions.

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Examples of Normal v. Excess Wear and Tear

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What Is Not Eligible for Arbitration Per NAAA Guidelines

The National Auto Auction Association (NAAA) defines a set of conditions that are not eligible for arbitration, regardless of vehicle lighting or sale type. These standards help create consistency and clarity across the industry. Some examples of items that are not arbitrable, per NAAA: 

• Beyond Timeframe: Any claim submitted beyond the stated arbitration window (including extended periods available through ACV Transportation or add-on Buyer Assurance products) are automatically deemed in valid

• Mechanical Issues < $800: Any individual defect  that is expected to cost less than $800 based on wholesale parts and auction labor rates is not arbitrable.

• Cosmetic Normal Wear and Tear: Expected based on vehicle age and mileage; includes minor dents, scratches, and worn interiors.

• Parts subject to Wear: Brakes, clutches, belts, hoses, wipers, tires and other wearable parts are not arbitrable.

• Noise and Vibration: Unless tied to a misrepresented drivability claim or structural defect.

• Fluid Leaks: Minor leaks are common and not subject to arbitration unless excessive and undisclosed.

• Non-Safety Accessories: Failures of non-safety features like radios, window switches, air conditioning, sunroofs, etc. are not eligible for arbitration

• Vehicle Modifications: Aftermarket alterations are not arbitrable unless misrepresented.

• Warranty Eligible Repairs: Any issue that is covered by an OEM warranty or is a known factory or inherent defect is not eligible for arbitration.

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Can I Arbitrate a Red Light Vehicle?

Yes, but only for specific high-risk issues that were not disclosed prior to the sale. For example: 

• Undisclosed Structural Damage: Meets NAAA definition and was not listed

• Title or Vehicle History Issues: Missing, branded, or non-transferable titles

• Odometer Tampering: Mismatch between title and vehicle or rollback

• Incorrect Representation: Wrong trim, year, engine, or VIN mismatch

• Vehicle Not Drivable: If described as drivable but is unsafe or inoperable

• Catalytic Converter Missing: If removed and not disclosed

• Severe Biohazard or Odor: If not reasonably discoverable in photos or CR

• Undisclosed Cosmetic Excessive Wear & Tear: See “Why Excessive Damage Must be Disclosed” section above

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What Cannot Be Arbitrated on Red Light Vehicles

These issues are generally considered part of an as-is sale and are not valid grounds for arbitration:

• Mechanical Problems: Transmission slip, A/C not functioning

• Cosmetic Wear (Normal Wear & Tear): Scratches, dings, faded paint

• Minor Interior Wear: Stains, worn seats or panels

• Noise or Vibration: Unless tied to safety/drivability and misrepresented

• Battery or Tire Condition: Unless unsafe or completely absent and undisclosed

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What to Do If a Vehicle Is Inoperable Upon Pickup

If you arrive to pick up a vehicle and it is inoperable—despite being listed as drivable—here’s how to proceed to protect your rights and ensure timely resolution:

1. Confirm the Listing: Check the listing to ensure the vehicle was not represented as inoperable or unsafe to drive
2. Document the Condition: Take clear photos and/or video of the issue (e.g., flat tires, dead battery, engine won’t start).
3. Do Not Attempt to Drive: Avoid moving the vehicle if doing so could worsen damage or create safety risks.
4. Notify ACV Immediately: Contact ACV’s Customer Service Team before removing the vehicle from the seller’s lot.
5. File an Arbitration Claim Promptly: Submit an arbitration claim through the ACV platform within the required timeframe.
6. Retain Transport Records: Keep transport invoices and pickup documentation as part of your evidence.

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ACV Purchase Protection

Buyers participating in the Purchase Protection program at the time of purchase will have a limited right to cancel the vehicle sale if their transaction meets certain conditions. To be eligible for cancellation, the vehicle transaction must meet the following criteria:

1. The vehicle does not fall within any of the following categories:
   
   • Red-light vehicles
   • Vehicle sale price of $75,000 or more
   • Vehicles with mileage of 175,000 miles or more at the time of sale
   • Exotic vehicles as determined by ACV (which includes, but is not limited to Bentley, Bugatti, McLaren, Lamborghini, Ferrari, and similar vehicles)
   • Powersports, heavy equipment, electric vehicles, and Class 4 or higher vehicles

2. The defect or condition for which arbitration is sought is valid and has an ACV estimated repair cost of $800 or more (in each case, as determined by ACV pursuant to ACV’s Arbitration Policy).

3. The vehicle sale amount does not exceed 110% of the estimated vehicle amount determined by ACV in its sole discretion.

4. The vehicle is otherwise eligible for arbitration based on the conditions set forth in ACV’s Arbitration Policy.

If ACV determines that the transaction qualifies for cancellation, Buyer will receive a refund equal to the buy fee paid by Buyer as well as the purchase price of the vehicle. Full details of the policy can be found here: https://www.acvauctions.com/legal/purchase-protection-terms

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