Vehicle Condition Arbitration Policy

VEHICLE CONDITION ARBITRATION POLICY

Effective: May 15, 2024

1.     Transparent and Fair Resolution Process. ACV Auctions Inc. (“ACV”) strives to create an arbitration experience that is transparent and fair for both the buyer (“Buyer”) and seller (“Seller”) of vehicles sold through the ACV online marketplace (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 it will strive to find a fair resolution to all legitimately brought concerns that are covered by this Arbitration Policy. In the event of any conflict between this Arbitration Policy and Federal, State, and Local laws, such laws shall supersede this Arbitration Policy where applicable.

3.     Title Policy; Terms of Service; Definitions. ACV’s Title Policy located at https://www.acvauctions.com/title-policy (“ACV’s Title Policy”) and ACV’s Terms of Service located at  https://www.acvauctions.com/legal/terms-of-service (“ACV’s Terms of Service”) apply to all transactions originating through ACV’s online marketplace (the “ACV Platform”).

2.     NAAA Arbitration Policy. Except as modified in this Arbitration Policy, for vehicles sold through the ACV Platform, ACV follows the applicable arbitration-related terms of the NAAA Arbitration Policy (the “NAAA Policy”), a current copy of which can be found at https://www.naaa.com/2024_Arbitration_Documents/NAAA_Arbitration_Policy_8_5_24.pdf

4.  How and When to Use the Arbitration Process at ACV

a.     General. If a Buyer has received a vehicle that has an undisclosed issue that is covered for arbitration under this Arbitration Policy, the Buyer may notify ACV by contacting ACV’s arbitration team through the ACV Platform.  A Buyer is only eligible to have the issue reviewed by ACV’s arbitration team if the Buyer has paid for the vehicle and submitted a request for arbitration prior to the expiration of the arbitration window set forth below. For all eligible Buyers, ACV will investigate the claim made by the Buyer and determine the appropriate resolution, if any. Buyer is required to complete the checkout process within twenty-four (24) hours after the Buyer’s bid is accepted by the Seller (“Timely Checkout”). Failure to do so may void Buyer’s rights to receive any arbitration services hereunder.

b.        Timing. Subject to the last sentence of this clause b., Buyer will have ten (10) calendar days from the date of purchase (i.e., the date Buyer’s bid is accepted by the Seller) (the “Standard Arbitration Window”) to raise any and all concerns to be reviewed through the arbitration process. The date of purchase counts as day one (1) for the purpose of calculating this timeframe. However, if the Buyer has selected transportation services from ACV’s transportation affiliate (currently, ACV Transportation LLC and hereafter referred to as “ACV Transportation”), then Buyer will have the greater of (i) the Standard Arbitration Window, or (ii) four (4) calendar days after the date the vehicle is delivered to Buyer through the ACV Transportation services, to raise concerns through the arbitration process. The date of delivery counts as day one (1) for the purpose of calculating this timeframe. Such additional grace period for using transportation services through ACV Transportation is not considered part of the Standard Arbitration Window for purposes of this Arbitration Policy. Notwithstanding the foregoing, for a period of up to ninety (90) days from ACV’s acceptance of a Buyer’s ACV Platform registration and until such Buyer’s completion of up to five (5) vehicle purchases through the ACV Platform, ACV may delay delivery of a pickup slip to such Buyer, and so long as such Buyer has completed a Timely Checkout for a vehicle purchase, the arbitration window time periods above will be extended for the length of the pickup slip delay.

c.        Extended Arbitration Windows. Buyer may, at the time of purchase, choose to purchase an extended arbitration option for any given vehicle which would give the Buyer either an additional ten (10) or twenty (20) calendar days from the end of the Standard Arbitration Window, depending on the option purchased, during which to request arbitration with regard to the applicable vehicle.  However, if the Buyer has selected transportation services from ACV Transportation then the extended arbitration period will begin at the later of (i) the date the vehicle is delivered to Buyer through the ACV Transportation services, with the date of delivery counting as day one (1) for the purpose of calculating this timeframe, or (ii) the end of the Standard Arbitration Window. Buyers purchasing an extended arbitration option are still obligated to promptly remove the vehicle from the Seller’s lot after purchase in accordance with the timeframe set forth in ACV’s Terms of Service.

d.        Investigation. In order to fully investigate the arbitration claim, ACV may require the Buyer to provide evidence of the claim and assist in diagnosis of any undisclosed condition issues within a specified timeframe, in order to determine an appropriate resolution. This may include the Buyer:

i.      submitting photos, video or other evidence of the vehicle condition to ACV within two (2) calendar days of the request by ACV,

ii.    taking the vehicle to a third party diagnosing facility designated or approved by ACV and providing evidence of such facility’s receipt of the vehicle,

iii.   permitting an ACV vehicle inspector or third party inspector to inspect the vehicle on the Buyer’s lot, or the Buyer taking the vehicle to a third party at ACV Auction’s option, or

iv.   providing 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 will close the arbitration related to such vehicle and the Buyer will not be permitted to reopen the arbitration.

e.        Final Determination. Buyer and Seller agree that ACV makes the final binding decision upon both the Buyer and Seller on all arbitration matters.

f.         Possible Resolutions to Arbitration. Resolutions to an arbitration may include payments or credits to the Buyer to cover, at ACV’s determined wholesale rates, parts and labor to repair covered vehicle condition issues as set forth in this Arbitration Policy, the cancellation of the sale, potential resolution without further action, or other resolutions in the discretion of ACV. Generally, ACV is likely to determine that payment for parts and labor expenses, at wholesale rates, associated with any arbitration claim is appropriate instead of a transaction being cancelled. However, ACV, in its sole discretion, may choose to cancel a sale rather than determining that payment should be made for parts and labor expenses. In no event will a Buyer be entitled to a remedy through arbitration for more than the price such Buyer paid for the vehicle. The cost of the repair is determined by ACV based on ACV’s estimate of wholesale dealer cost, which means used, remanufactured, and/or aftermarket parts, as well as a wholesale labor rate of $90 for internal combustion engine vehicles and $100 for electric vehicles.

g.        Maximum Payout for Vehicles Valued at $5,000 or Less. For any arbitrated vehicle having a sales price of $5,000 or less, and for which it has been determined that Buyer is entitled to payment or credit under this Arbitration Policy, the maximum amount of any such payment or credit shall be twenty-five percent (25%) of the sales price for such vehicle.

h.        One Arbitration Only. The Buyer should inspect the vehicle upon delivery and determine all issues or concerns with the vehicle and notify ACV of all vehicle condition issues at the same time. Once an arbitration for a given vehicle has been completed and closed by ACV, no new concerns may be raised by the Buyer for arbitration related to that vehicle.

i.         If Reparation is made to the Buyer. If 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.

j.         If a Sale is Cancelled. In the event ACV, in its sole discretion, determines that cancellation of the sale is the appropriate resolution after the vehicle has been delivered to the Buyer, the vehicle will be transported to another location by ACV, the Seller, or another third party, at ACV’s discretion. The Buyer will be responsible, at its own cost, for the safety and security of the vehicle, and any damage that occurs to, or theft of, the vehicle until it can be transported from the Buyer’s lot. ACV will not be responsible to pay the Buyer any fees associated with Buyer’s or its third party’s storage or security of the vehicle until it is transported from Buyer’s lot. Buyer and Seller agree that, in the event the transaction is cancelled as the result of a vehicle condition arbitration claim, either party may be required by ACV to transfer ownership to the next Buyer either through the ACV Platform or otherwise, and Buyer and Seller agree to cooperate with such transfer and promptly provide and facilitate the processing of any title paperwork related thereto. In the event of a cancellation and so long as ACV receives the required negotiable title paperwork from the Buyer, Buyer will recoup the purchase price and Buyer fee paid to ACV for the original purchase of the vehicle upon ACV’s receipt of such title paperwork. For the purpose of clarity, only ACV (and not Buyer or Seller) can cancel a sale under this Arbitration Policy and Buyer’s sole remedy for any such cancellation is recoupment of the purchase price and Buyer fee as described above.

k.        What Can Be Arbitrated (Vehicle Condition). In order for the Buyer to request arbitration and to be eligible for any remedy based on the vehicle condition, each of the following criteria must be met:

i.      The defect or concerning condition was not disclosed in an Electronic Data Vehicle History condition report;

ii.    The odometer reading has not increased by 150 miles or more over the miles indicated on the ACV Platform at the time of purchase. In the event of a live appraisal, a vehicle will not be eligible for arbitration in the event the odometer reading has increased by 150 miles or more over the miles indicated on the title; and

iii.   The vehicle is otherwise compliant with the Arbitration Guidelines of the NAAA Policy and is not otherwise excluded pursuant to such terms.

5.     Seller's Responsibilities. In addition to Seller’s obligations under the NAAA Policy, Seller agrees to the terms below.

a.        Seller must abide by ACV’s Title Policy and ACV’s Terms of Service.

b.        In the event of a successful arbitration by the Buyer, Seller is responsible for reimbursement of the amounts determined by ACV 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, Seller will be responsible at its cost to transport the vehicle from the Buyer’s lot.  Notwithstanding the foregoing, if ACV performed the vehicle condition inspection, the Buyer identifies cosmetic damage that was on the car at the time of the inspection but not disclosed in the inspection report (including in any pictures), and the damage would otherwise be covered by this Arbitration Policy, ACV will cover the cost of the repair of such cosmetic damage.

c.        For arbitrations occurring after the Seller has been paid, Seller is required to promptly return the payment to ACV if the transaction is cancelled as a result of arbitration.

d.        Seller is responsible to disclose and allow ACV to disclose the complete and accurate condition of the vehicle and title, including without limitation, the vehicle’s accident history. In the event Seller (including any of its employees and agents) has not disclosed the complete and accurate condition of the vehicle or title, inaccurately represented the features or condition of the vehicle, or otherwise tampered or interfered with full disclosure of the vehicle condition or title, there is damage or theft of the vehicle or the vehicle is tampered with before or after the condition report is written, or the Seller otherwise acted with gross negligence or willful misconduct resulting in incomplete or inaccurate disclosure, and whether or not Seller participates in ACV’s GO GREEN program described below, Seller will be responsible for all costs associated therewith, including arbitration costs, relisting costs, and all costs, liabilities, and losses sustained by ACV, the Buyer, and any affected retail customer. Further, if the transaction is cancelled for any of the foregoing reasons, the Seller: (i) shall promptly return the proceeds from the original sale to ACV, (ii) 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 (iii) will be responsible to refund vehicle transportation expenses incurred by the Buyer or ACV.

e.        Without limiting any of Seller’s disclosure obligations hereunder for any vehicle listing, Seller must disclose modified, or inoperable Catalytic Converters.

6.     Buyer's Responsibilities

a.     Buyer will inspect the vehicle immediately upon arrival at Buyer’s location. The Buyer must verify the Seller’s representations and promptly notify ACV of any discrepancies within the time frame as stated in this Arbitration 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 odometer.

b.     Prior to making an offer to buy the vehicle through ACV, the Buyer is responsible to review all condition reports, pictures, and disclosures made available by the Seller and ACV.

c.     Buyers are also responsible for observing and understanding the Sale Light System, which are a non-binding, subjective indicator of the various sale conditions for the vehicle.

d.     The Buyer is financially responsible and assumes all risk of damage and loss on the vehicle beginning at the point of pick up (by the Buyer or its agent) or delivery (by third party transporter).

e.     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 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.

f.      The Buyer will not have any repairs performed prior to ACV validating the claim. Cost for any repairs performed prior to validation of the claim will not be covered by arbitration. If the Buyer makes any changes to the vehicle pending completion of arbitration, the Buyer shall be liable for any and all work done to the vehicle and any result thereof. Additionally, Buyer will not be eligible for any remedy through arbitration for a vehicle that has been sold by Buyer after purchase (either wholesale or retail, and whether valid or voided) and before an arbitration claim is resolved.

g.        Buyer must abide by ACV’s Title Policy and ACV’s Terms of Service.

7.     Buyer's Expectations

a.        ACV vehicle condition inspectors drive the vehicle around the Seller’s lot, but the vehicles are not tested at road speeds. ACV provides an on-site visual inspection of the vehicles listed through the ACV Platform, including exterior, interior, undercarriage and frame (without lifting the vehicle).

b.        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.

c.     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.

d.     As a professional used car buyer, Buyer can expect that the cars Buyer purchases through the ACV Platform may have imperfections and may need repairs to get them into retail-ready condition. Although ACV may not disclose in the condition report all items that are subject to wear and tear, it should be considered normal and reasonable for any wholesale auction purchase, and therefore, these issues are not eligible for arbitration claims.

8.              Sale Light System. ACV follows the NAAA Sale Light System. See the NAAA Policy for details. 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 to accurately determine the condition of the vehicle before making a purchase decision. Vehicles lacking a properly assigned title or reassignment to transfer a title at time of sale must sell “Title Absent,” with the Blue light on. Vehicles lacking lien release or a valid repo affidavit for a repossessed vehicle (where allowed by law) must be sold “Title Absent,” with the Blue light on. Vehicles having only a five (5) digit odometer must sell as Red light vehicles.

9.     GO GREEN® Policy.

a.     ACV offers to certain Sellers a GO GREEN program which, if the Seller chooses to participate in such program and ACV 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 this Arbitration Policy as set forth below. This is being offered as an assurance service to Sellers to show ACV's commitment to stand behind ACV's inspection report. 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 Platform.

b.     Notwithstanding anything to the contrary in this Arbitration Policy, for vehicles that sell for less than $75,000, the GO GREEN program provides the Seller with protection against defects in the vehicle that are not disclosed in ACV’s condition report (“Undisclosed Vehicle Defects”) that are unknown to the Seller and otherwise might result in either the cancellation of the transaction or liability for costs for repair. Specifically, in return for payment of the fee to participate in the GO GREEN program, ACV: (i) will release the Seller from its obligations under Sections 5.b. and c. of this Arbitration Policy, (ii) will pay to the Seller the full sale price paid by the original Buyer even if the transaction is later cancelled, and (iii) will cover any costs due to the Buyer pursuant to this Arbitration Policy.

c.     Notwithstanding anything to the contrary in this Arbitration Policy, for vehicles that sell for $75,000 or more (“High Value Vehicles”), the GO GREEN program provides the Seller with protection against solely cosmetic defects on the vehicle that are not disclosed in ACV’s condition report (“Undisclosed Cosmetic Vehicle Defects”) that are unknown to the Seller and otherwise might result in either the cancellation of the transaction or liability for costs for repair. Specifically, in return for payment of the fee to participate in the GO GREEN program for High Value Vehicles, ACV: (i) will release the Seller from its obligations under Sections  5.b. and c. of this Arbitration Policy solely with regard to cosmetic damages, (ii) will pay to the Seller the full sale price paid by the original Buyer even if the transaction is later cancelled based on the cosmetic damage, and (iii) will cover any costs for the cosmetic damage due to the Buyer pursuant to this Arbitration Policy. For High Value Vehicles, even if the Seller participates in the GO GREEN program, the Seller will remain subject to Sections  5.b. and c. of this Arbitration Policy with regard to all non-cosmetic damage to the High Value Vehicle including but not limited to mechanical issues, frame damage, and vehicle history discrepancies. As such the Seller will remain responsible to pay the Buyer any costs associated with all undisclosed non-cosmetic damages, and in the event the transaction is cancelled related to non-cosmetic damage, the Seller will accept the return of the vehicle at the Seller’s expense and return to ACV all amounts paid to the Seller for the High Value Vehicle.

d.     If the Seller participates in the GO GREEN program, and a transaction is later cancelled for any reason covered by the GO GREEN program, the Seller will permit ACV to relist the vehicle under the Seller’s name on the ACV Platform in order to sell the vehicle to another Buyer. ACV, 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 the ACV Platform after a cancellation of an original transaction, ACV may provide the car in the Seller’s name to a wholesale dealer outside of the ACV Platform, a recycling center, or other service to remarket or resell the vehicle.

e.     Even if ACV relists a vehicle under the Seller’s name as part of the GO GREEN program, ACV 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, at Seller’s expense, with transfer and, if applicable, the resale of the vehicle, including without limitation providing any updated resale/reassignment documentation necessary to resell the vehicle if the original transaction is cancelled.

f.      Without limiting Seller’s other obligations under this Arbitration Policy, Sellers which participate in the GO GREEN program will remain fully responsible for the following:

i.      Any issues with vehicle titles, including but not limited to accurate disclosure of odometer readings.

ii.    Missing, modified, or inoperable Catalytic Converters.

iii.   Undisclosed Vehicle Defects that Seller knew about (either through their inspection or otherwise).

iv.   Seller’s fraudulent or deceptive acts or omissions including but not limited to:

1.     Tampering with a vehicle (before or after ACV’s inspection).

2.     Clearing diagnostic codes.

3.     Selling or attempting to sell a vehicle with missing or inoperative airbags.

4.     Disabling or unsetting monitors prior to ACV’s inspection.

5.     Resetting check engine lights or codes without successfully completing related repairs.

6.     Tampering with, influencing, or attempting to influence the revision of ACV’s condition reports or disclosures.

If an arbitration is based on any of the foregoing, then, notwithstanding the Seller’s participation in the GO GREEN program, the Seller: (i) shall remain liable for the costs of parts and repair of the vehicle, (ii) shall be liable for any harm caused thereby, and (iii) will be disqualified from the GO GREEN program. ACV may also seek any other available legal and equitable remedies. Further, if a transaction is cancelled due to any of the issues set forth in this Section 9.f., notwithstanding the Seller’s participation in the GO GREEN program: (A) the Seller shall promptly return the proceeds from the original sale to ACV, (B) ACV will not permit the vehicle to be re-listed on the ACV Platform unless and until the issue has been properly resolved or disclosed, (C) 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 (D) Seller will be responsible to refund transportation expenses incurred by the Buyer or ACV for the applicable vehicles.

g.     If arbitration claims related to Seller’s vehicles are more frequent than other ACV customers, or if ACV believes, in its sole discretion, that Seller is taking advantage of the GO GREEN program in any way, ACV may terminate Seller’s participation in the program. ACV reserves the right to refuse or terminate participation in the GO GREEN program for any Seller.

10.           Wisconsin Sellers Only. Unless otherwise notified by a Seller, ACV may auto-enroll Sellers selling their vehicles in Wisconsin into the GO GREEN program, in which case, all Seller vehicles being sold in Wisconsin and meeting the GO GREEN eligibility requirements will be deemed to be GO GREEN vehicles. Vehicles being sold in Wisconsin by Sellers who do not participate in the GO GREEN program or that do not meet the GO GREEN eligibility requirements must be listed as Red light vehicles.

11.           Conflicts. If any provision contained in this Arbitration Policy is in conflict or inconsistent with any provision in the NAAA Policy, ACV’s Title Policy and/or ACV’s Terms of Service, such conflict will be resolved by the following priority of documents: (1) ACV’s Terms of Service, (2) this Arbitration Policy, (3), ACV’s Title Policy, and (4) the NAAA Policy.

12.           Amendment of the Policy. 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 website unless otherwise specified in therein.

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