Arbitration Policy

The following are rules governing the arbitration process

Arbitration & The light System:The light system is comprised of three colors:

  • Red Light: A red light means AS IS. If a vehicle is on a red light this means that the buyer assumes all risk and liability for any repairs or issues that the vehicle has. Reasons for a vehicle being sold on a red light are usually due to age and high mileage. (vehicles with 125,000 miles and higher are red light vehicles) Other reasons can be due to lack of warranty or guarantee from the seller, or vehicles that need repair. (Most vehicles sold by government entities are sold on a red light, regardless of age or mileage.) Vehicles that are sold on a red light cannot be arbitrated.
  • Yellow Light: A yellow light means CAUTION. If a vehicle is sold on a yellow light, this means that bidders need to pay close attention to the vehicles announcements, as the vehicle may not meet the restrictions of a red light vehicle, however issues do exist. A vehicle can not be arbitrated for announced issues or conditions.
  • Green Light: A green light means the vehicle is CLEAR of any known issues, and that it does not have the restrictions of a red or yellow light. Typically green light vehicles have passed a preliminary, limited inspection. A more thorough inspection (PSI) of a green light vehicle can be purchased before bidding on a vehicle, that will protect the winning bidder from any liability in the event that there is any issues found (costing over $500 dollars) during the PSI. Green light vehicles can be arbitrated if they have certain arbitration faults according to the national arbitration guide lines.
  • The light system supercedes arbitration rules. Only vehicles with a green light are eligible for arbitration.

Qualifying Conditions

  • Fleet, Bank, Credit Union, and Finance Co. Vehicles: Less than 150,000 miles on the odometer and bid price over $2,000.00.
  • Dealer, Individual, and Auction owned vehicles: Bid price $2,000.00 or below is AS-IS. Bid price over $2,000.00, mileage under 150,000 is with a drive.
  • Donation, Charity, State, City, County and other municipality vehicles: Not subject to arbitration under any circumstances. (see Frame Damage/Flood Damage and Odometer Problems sections below.)
  • Time Limit: Bidders should plan to pay in full well before the 2:00 p.m. Friday deadline in order to have sufficient time to arbitrate vehicle.
  • Refund: If the existence of the serious un-announced defect is verified and would cost over $500.00 to repair, Houston Auto Auction will refund all monies received for that vehicle.
  • Frame Damage/Flood Damage: Must be returned for arbitration within 48 hours of sale.
  • Odometer Problems: All vehicles more than 9 years old are Exempt from odometer discrepancy laws and therefore, are not eligible for arbitration for any odometer problems. All broken odometers must be reported within 48 hours of notification that the vehicle has been sold. This is very specific and different from odometer fraud. Odometer Fraud is a federal crime, and should be reported to the auction as soon as the purchaser knows or should have known of such fraud.

Avoid arbitration hassles by purchasing a 7 day Post Sale Inspection.

With a PSI (Post Sale Inspection), if we find any issues with the vehicle(s) that you have won in auction, that qualify for arbitration, you will be covered 100%.

Mechanics giving an inspected car a thumbs up

We guarantee our Post Sale Inspections

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At HAA you can bid with confidence