KING AUTO AUCTION, INC.

5620 HENDERSONVILLE RD.

FLETCHER, NC 28732

 

POLICY & RULES

 

GENERAL ARBITRATION POLICIES

 

                    The sales at the Auction are intended to promote fair and ethical treatment to both the Buyer and Seller.  If the Auction determines that the transaction is not fair and ethical to either party, the Seller and Buyer agree that the Auction may cancel the sale, at its sole discretion.

 

                    The Auction makes no representations or guarantees as to the description, equipment, history, warranties, service policy, title status, accuracy of odometer on any vehicle sold or offered for sale.  The Auction does not guarantee or get involved in any factory or dealer warranty coverage issues on vehicles sold or offered for sale at the Auction.

 

                    The decision of the Arbitration Department is final and binding on both the Buyer and Seller.  The Auction reserves the right to assess an arbitration fee to the Buyer if an arbitration claim is deemed invalid or frivolous.  Any arbitration must be properly documented in writing and signed by the Arbitrator.  If the arbitration is valid, the Auction reserves the right to assess an arbitration fee to the Seller if they knowingly omit an announcement.  This fee is in addition to any charges associated with the arbitration procedure, such as fees at a specialty shop or transportation costs to and from a garage, etc.

 

                    The Auction is not a party to the contract of the sale.  The sale contract is between the Seller and Buyer, only.  The Seller is required to give the Federal Odometer Mileage Statement in connection with any auction sale, as required by the DMV, as well as a Damage Disclosure Statement.  The Auction is not responsible and does not guarantee the accuracy of odometer readings, odometer statements or damage disclosure statements. 

 

                    Any vehicle sold “AS-IS” is NOT SUBJECT to mechanical arbitration.

 

ONLINE BIDDING

 

                    All online purchases made by off-site customers must be paid for no later than 12:00 noon on the day after the auction (Friday), via wire transfer, electronic check or floor through accepted floor plan companies.  New customers must read the auction policies and rules, sign that you agree to those terms and fill out a new dealer application.  Payments received after noon on Friday will incur a $50.00 late fee per vehicle purchased.

 

                    For all online purchases, there will be an additional $50.00 charge in addition to the applicable buyer’s fee charged for onsite purchases, for each vehicle purchased online.

 

                    You must be a licensed automobile dealer, registered to conduct business at King Auto Auction to participate in our Auction Edge Simulcast auctions.

 

                    Floor bidding will have precedence in case of tie bids. 

 

LOT SALES

 

                    Any sale in which the Auctioneer does not state the selling price of the vehicle or “sell across the block” is considered a “LOT SALE”

 

                    All Lot Sales are conditional until the Buyer pays for the vehicle.  Up until the time of payment, the sale is not binding on either party.  Once a Lot Sale has been paid for, the vehicle becomes “AS-IS” for the Buyer.  The Buyer should check out all Lot Sale vehicles carefully before purchasing, since they are not arbitratable for any reason, including frame or unibody damage.   Vehicles sold as Lot Sales after going across the block, are still subject to the announced conditions noted on the auction block invoice. 

 

                    All vehicles bought or sold on the premises, must be processed through the auction office.  Failure to do so will result in being barred from attending the Auction.

 

                    Sellers may guarantee Lot Sales, but must do so in writing.

 

IF SALES

 

                    “If” Sales are binding to the buyer until noon on the day after the auction.  In the event the auction is not able to reach the buyer, the approved “if” sale stands until contact can be made.  In the event an “if” sale is declined and a counter offer is made, the auction will contact they buyer when the offer is accepted.  Make sure you give us your best contact number on your dealer application in order to expedite these sales in a timely manner.

 

RULES FOR ALL TYPES OF SALES

 

                    All vehicles consigned to the Auction must have a Vehicle Identification Number (VIN#) plate attached to the vehicle.  Those vehicles having a reassigned VIN plate by the state, must be announced or will be subject to sale cancellation or Buyer return.  The Auction reserves the right to refuse the sale of any vehicle in which the VIN plate appears altered in any way.

 

                    The Auction reserves the right to review any audio or video documentation for verifying accuracy of the sale, in case of disputes. 

 

                    The Auction does not guarantee any information listed in electronic data vehicle history data bases, such as Car Fax, Auto Check, etc., and may not arbitrate the vehicle, based solely on that data.

 

                    The Auction does not guarantee any warranty books, VIN plates or year of kit vehicles, trailers, motorcycles, water craft, recreational vehicles, antique or modified vehicles.  All of these vehicles are sold “As-Is” and have no odometer or frame guarantee.  The Auction does not guarantee titles on water craft.

 

                    All guarantees stated by the Seller are those of the Seller, only.  The Auction does not make any guarantees, expressed or implied, as to the accuracy of those guarantees.  The Auction assumes no responsibility for vehicle records, manuals, service records, warranties or history. 

 

                    The Auction reserves the right to reject any vehicle that management judges to be unsafe.

 

                    Engines or Rear End noises that are typical of a particular model or manufacturer, unless deemed excessive by the Arbitrator, cannot be arbitrated. 

 

                    Standard transmissions cannot be arbitrated for manual clutches unless completely inoperative.

 

                    All mechanical arbitrations must be brought to the Arbitrator within 30 minutes of the close of the sale.

 

                    The Arbitrator will only inspect the defect or defects which the Buyer has asked to be on the arbitration form.  Each vehicle is allowed only one chance at mechanical arbitration.  If price adjustment is made and accepted, the vehicles becomes “As-Is” and is not subject to further arbitration for mechanical defects or adjustments.  The decision of the Arbitrator is final and binding to both Buyer and Seller.

 

 

LIGHT SYSTEM

 

                    The Auction has a standardized light system to describe the condition and/or announcements related to the sale of the vehicle.  The light system is as follows:

 

                    GREEN LIGHT – (Ride & Drive) – The green light signifies that the vehicle is guaranteed under the conditions outlined in the Sale Day and As-Is Arbitration section, except for specific announcements made prior to the sale.

 

                    YELLOW LIGHT -  (Announcements)  - The presence of the yellow light indicates that an announcement has been made as to a known condition and the vehicle cannot be arbitrated for that particular condition.

 

                    RED LIGHT – (As-Is) – Vehicles selling under the red light cannot be arbitrated for any reason and the winning bidder must pay for the vehicle.

 

                    BLUE LIGHT – (Title Attached or Title Unavailable) – The blue light indicates that the title is not present for delivery at the time of sale.  The Seller has a maximum of 28 days to produce the title and no money should be spent on the vehicle until the title is received.

 

 

                    The Seller must understand that the sale lights are a binding representation of vehicle conditions and is, therefore, responsible for ensuring that their vehicles sell under the correct light in the lane.

 

                    The Buyer is responsible for listening to announcements made by the Auctioneer or Seller, related to the vehicle, prior to the start of the sale for each vehicle. The Buyer is also responsible for observing and understanding the light system.

 

 

SELLER RESPONSIBILITIES

 

                    Seller will be held responsible for the accuracy of any representation (verbal or written) made by the Seller or Auctioneer at the time of sale, independent of vehicle light designation or guarantee offered.  This includes year, model, mileage, announced conditions and the corresponding lights under which the vehicle is sold. 

 

                    The Seller is responsible for reimbursement of all reasonably documented expenses incurred by the Buyer (excluding profit, commissions and detail charges) on vehicles arbitrated for unannounced conditions not detectable through vehicle inspections, such as stolen vehicles, odometer, title discrepancies, frame damage, flood damage, etc.).  Expense reimbursements will be at the sole discretion of the Auction and will be at the sole discretion of the Auction, which may be limited to reasonable and documented expenses and transportation, only.

 

                    Title brandings or discrepancies must be announced, including salvage, disclosure requirements, previous salvage, theft recovery, not actual miles, odometer replacements, flood or fire history and Lemon Law buyback.

 

                    All titles must be in the seller’s name, either on the title or by re-assignments.  It is the Seller’s responsibility to ensure that a vehicle’s title is negotiable in the state in which the Auction resides and that the title is free and clear of all lines and encumbrances.

 

                    Seller is responsible for the correct VIN numbers on titles and vehicles.  All vehicles registered at the Auction are subject to inspection by the FBI, State Law Enforcement Agencies, Local Police Authorities or the National Auto Theft Bureau.  Seller shall be solely responsible for the repurchase of any vehicle sold through the auction and found to be stolen prior to the date of sale.

 

                    Seller has the responsibility to produce a negotiable and marketable title to the Auction within 28 days of the sale date.  There is an additional fee for vehicles sold title attached.

 

                    All multi-purpose and utility type vehicles are assumed to be 4x2 unless otherwise announced; however, if a 4x2 multi-purpose or utility type vehicle has been altered in appearance to resemble a 4x4, a 4x2 announcement is required.

 

 

BUYER RESPONSIBILITIES

 

                    Buyers must inspect vehicles prior to and immediately following the sale, or within is 30 minutes of the sale.  The Buyer must verify the Seller’s representations and notify the Auction immediately of any discrepancies within the time frame, as stated in the Arbitration Policy.

 

                    Buyers must verify odometer reading and operation before leaving the Auction.  Mileage must be the same as the originally recorded miles at time of sale if arbitrated for inoperable odometer.

 

                    Bidders must follow the Auctioneer’s cadence on price; any misunderstanding concerning price must be addressed at the drop of the Auctioneer’s hammer and not following the sale of the vehicle.  As earlier stated, all sales are electronically recorded. It is also the Bidder’s responsibility to watch for lights and listen to announced conditions before placing bids.  Once the vehicle is sold, Buyers should check the Bill of Sale to confirm that the vehicle price and announcements are correct before legible printing and signing their name to the Bill of Sale.  The Auction will not arbitrate defects visible from the block or announced conditions.

 

                    Buyers must inform the Auction immediately of any discrepancies as to Seller’s representations, warranties and descriptions.  Arbitration will be limited to the specific defects described by the Buyer upon placing the vehicle in arbitration.

 

                    Buyers guarantee that sufficient funds are available and will remain on deposit at the Buyer’s bank to cover all checks.  Until payment and title is received, the Buyer should not offer the vehicle for sale.  Online Buyers must pay the following day by means of wire transfers to the Auction’s bank and an additional fee of $50.00 is charged to bid online.

 

                    Buyers must pay the bid price plus a Buyer’s Fee.  Floor Plan payments must be established at the time of sale.

 

                    Buyers agree to be held liable for any and all work done to a vehicle prior to returning the vehicle to the Auction, if returned due to title discrepancies or delays.

 

                    Buyers must thoroughly check and test drive every vehicle.  If there is a problem, a complaint must be properly filed with the Arbitration office within the established arbitration time limit (30 minutes after sale of vehicle).  Buyer assumes responsibility for mechanical failure after leaving the Auction once the arbitration period is over.

 

                    Mileage, model and other information written on the window of sale vehicles or printed in run lists, is for the convenience of the Buyer and is not to be relied upon as accurate or complete.  Buyers should satisfy themselves as to year, mileage, model type and/or equipment, by viewing the actual vehicle prior to bidding.  The Auction will not arbitrate vehicles based on incorrect information written on a vehicle or on printed materials.

 

 

SALE DAY AND AS-IS ARBITRATION

 

               Vehicles that have any defects listed elsewhere, conditions or discrepancies that were not disclosed or announced at the time of sale, must be reported to the Auction within the time frame noted (3 minutes), in order to be eligible for arbitration.

 

               Any single defect having a repair cost of $500.00 or more, is arbitratable on Green Light vehicles.  Cost of repair is to be determined by the Arbitrator.  Single defects of less than $500.00 are deemed minor and are not subject to arbitration. 

 

               Any vehicle selling for less than $2000.00, becomes As-Is, regardless of the light it was sold under.

 

 

TITLE POLICY

 

                    The Auction assumes no responsibility for expenses incurred on vehicles returned because of a late title.  Buyers should make no repairs until the title is received.

 

                    If a title problem is due to a clerical error or incomplete documentation, the Auction shall be given reasonable time after receiving notice, to have the error corrected.  Title problems are usually not created by the Auction and it has no control over the time required either to acquire a title from the Seller or to correct errors created by the Seller.  Buyer and Seller agrees that the Auction is not responsible for odometer mileage nor the information contained in the odometer mileage statement.  The Auction is also not responsible for the information disclosed in the Damage Disclosure Statement. 

 

                    Non-titled vehicles – Non-titled vehicles, trailers, ATVs, etc. or anything else sold, where a title is not required, is sold with a Bill of Sale, only.  These units will also be subject to sales tax unless a completed sales tax exemption form is on file with the Auction.

 

                    Sellers will not be paid for vehicles until a transferrable title is received.  Sellers will not be paid for vehicles in arbitration until the issue is resolved.

 

                    Foreign titles, such as Canadian titles, are no acceptable.

 

                    Applications for duplicate titles will not be accepted.

 

                    Seller has a maximum of 28 days from day of sale (sale day is Day 1), to present title to the Auction; however, after 15 days, an additional fee is charged to the Seller.  After 28 days, it is the Buyer’s option to either return the vehicle in the same condition as received, or wait a reasonable period of time for the title.  Anyone not having a transferable title on day of sale, must sell “Title Attached” and pay the applicable fees for such. 

 

                    Buyers are cautioned not to sell or make any repairs on the vehicle until the title is received.  Repairs are not refundable.  If title has been mailed from the Auction to the Buyer, Buyer may not return the vehicle.  Buyers are required to notify the Auction one (1) business day prior to returning the vehicle.  If a valid, negotiable title is presented within the 1-business day period, the transaction will stand.  Returned vehicles must be received in the same condition as when purchased, with no advancement in miles over 250 miles from mileage showing at the time of purchase.  Seller will be responsible for the buy fee plus reasonable transportation expenses to and from the Auction on vehicles returned due to no title.

 

                    Any title brandings must be announced from the block.

 

                    All titles received on title attached sales will either be mailed via Certified Mail or held at the Auction for pickup.

 

 

 

STRUCTURAL DAMAGE POLICY

 

                    Seller must disclose structural damage, repairs or replacements, as outlined in this policy, prior to selling a vehicle.  These declarations could be:

  1.  Structural Damage – The vehicle has structural damage and /or repairs and will not be subject to arbitration under this policy.
  2. Certified Structural Repairs – The vehicle has sustained damage to a specifically identified structural component, which has been repaired and the vehicle has been certified to be within the Used Vehicle Measurement Standard (UVMS).  The vehicle, if properly announced, may be arbitrated only for improper repair of the designated are, existing damage or repairs to other areas, or failure to be within the UVMS.
  3. Structural Alteration – The vehicle has an altered frame or unibody as specifically announced.  The vehicle can be arbitrated only for damage or repairs to structural components other than those disclosed or in the event of improper alteration.  Such a disclosure should be made for the following alterations unless they are clearly obvious by the appearance of the vehicle.
  4. Frame lengthened or shortened.