Auction Rules

All selling announcements shall be made by auctioneer only, and all representations by the seller must
be announced through the auctioneer. It is the seller’s obligation to fairly represent the vehicle and to correct any errors made by the auctioneer as to “announced conditions.” It is the purchaser’s obligation to watch lights and listen to “announced conditions.”

  1. Complaints. All complaints and rejections must be handled through the arbitration office within the acceptable arbitration period as set forth in the NAAA Arbitration Policy Matrix. Incorporated herein by reference. Both buyer and seller must await the decision of the arbitration office before leaving the auction premises.
  2. “AS-IS”. Vehicles sold “AS-IS” are not subject to arbitration except for those listed in Section 1 (i) – (y), subject to the arbitration period as set forth in the NAAA Arbitration Policy Matrix, incorporated herein by reference.The sale of any vehicle that has been arbitrated becomes an “AS-IS” transaction. Purchase transactions not occurring at the block also shall be “AS-IS” transactions unless guaranteed by the seller in writing.SEE  AUCTION POLICY – “AS-IS” DOLLAR AMOUNT, MODEL, YEARS, AND MILEAGE IS SUBJECT TO AUCTION POLICY.
  3. Finality of Arbitration. No future arbitration will be permitted for any reason, with the exception of only the following (sale day is day one):
    • fuel conversion reported within 7 days;
    • non-original engine (excludes items replaced under manufacturer warranty) – calendar year and up to 4 years old reported within 7 days;
    • voided factory warranty reported within 7 days;
    • frame/unibody damage (existing, altered or repaired) Needs to be reported within 72 hours, Sale day is day one;
    • flood damage as determined by auction inspection reported within 7 days;
    • state issued VIN plates, incl. kit vehicles reported within 7 days;
    • taxis, delivery vehicles, police cars, government vehicles that are calendar year and up to 4 years old reported within 7 days;
    • previous Canadian that are calendar year and up to 4 years old (unless state or local law supersede) reported within 7 days;
    • Lemon law / Manufacturer’s  Buyback reported within 7 days;
    • vehicles being sold with no title (bill of sale only) reported within 7 days;
    • all broken odometers must be arbitrated within 7 days;
    • salvage vehicles, reconstructed vehicles, theft recovery vehicles and stolen vehicles (including history) reported in 7 days;
    • gray market vehicles reported within 7 days;
    • insurance and/or salvage titles (including history) reported within 7 days;
    • vehicles being sold with a CO, MSO or repo affidavit title (if required by state law) reported within  7 days after receipt of title;
    • pending state or local DMV fees or taxes over $100 due on vehicle (if required by state) reported within 7 days after receipt of title;
    • any state required damage disclosure reported within 7 days after receipt of title;
    • flood damage history (discovered by DMV or insurance company records) reported within 120 days.Items (a) – (c) are not subject to arbitration for vehicles sold “AS-IS.” Item (k) must be reported to purchaser prior to leaving the auction premises, or will be addressed via the depreciation formula as described in the NAAA Arbitration Policy, incorporated herein by reference. Transactions for Items (k) – (n) can be rescinded if arbitrated within the stated time limits; however, arbitrations initiated after the stated time period will be addressed via the depreciation formula described in the NAAA Arbitration Policy, incorporated herein by reference.
  4. Return of Vehicle to Buyer. If after arbitration the vehicle is returned to the seller for failure to announce one of the conditions listed in (a) through (g) above, seller shall pay sell and buy fees. Buyer must notify South Bay Auto Auction of its intent to arbitrate and return any vehicles to the auction 24 hours in advance. South Bay Auto Auction may approve or deny buyer’s request to arbitrate and return the vehicle. If approved for arbitration, the buyer must follow all directions by the auction relative to returning the vehicle or the arbitration request will not be recognized by the auction. Return of the vehicle to the auction does not negate the buyers financial obligations under the pending sale and any vehicles delivered to and left on auction premises without auction approval remain the sole responsibility of the buyer. Buyer assumes all risk of loss once the vehicle is in the possession of the buyer and pending arbitration.
  5. Visible Defects. Visible defects are not subject to arbitration (e.g. Hail damage, body damage, glass, lowered, lifted, Cargo cage hook-up.)
  6. Inoperative Gauges. Vehicles with inoperative gauges or lights except for odometers as set forth above are not subject to arbitration.
  7. Arbitration Decisions. South Bay Auto Auction’s arbitration manager will make the final decision on all arbitrations.
  8. Payment for Vehicles. Auction is not a party to the contract of sale. The sales contract is between the seller and buyer only. South Bay Auto Auction is not obligated to pay for any vehicle for any reason.
  9. Stolen Vehicles. Seller shall settle all stolen vehicles sold through the auction at the purchase price less 2% per month for every month from the date of sale.
  10. Window Information. Mileage and other information printed on the windows of any vehicle is for the convenience of the dealer only. This information is not to be relied upon as complete and/or accurate and is not subject for arbitration.
  11. Additional Details. Refer to the NAAA Arbitration Policy for additional details
  12. Non-Runner Vehicles. Non runner vehicles are strictly AS-IS including odometer, salvage, and total loss.
  13. PSI. Must be requested same day regardless of final or offer.


Arbitration services shall be performed at the discretion of and pursuant to the arbitration policies of the Auction. In order to enter into arbitration, the Buyer must give the Auction notice of the undisclosed defects, condition or discrepancy within the times specified herein (by 12 noon day after sale day and in the case of frame vehicles, within three days from sale date. Sale day is day one.) If the Buyer fails to give such notice, the Auction shall have no duty or obligation to provide arbitration services. It is important for the Buyer to present vehicles to arbitration only if they have readily apparent defects, conditions or discrepancies that have not been disclosed. ONLY the arbiter will handle arbitration through the arbitration office.

  1. The Auction guarantee will be in effect until 12 noon day after sale day.
  2. All ten (10) year old and older vehicles, vehicles with over 150,000 miles, odometer discrepancies and broken odometers will be sold as-is unless otherwise announced.
  3. Any vehicle sold $2,500.00 or less is strictly as-is including frame.
  4. If the Auction arbiter determines the Buyer’s complaints to be without merit, the Buyer will be charged a $250.00 arbitration fee. If the Buyer’s complaint has merit then the Seller will be charged a $250.00 arbitration fee plus reasonable documented costs, expenses and transportation of the vehicle, which Buyer has expended, not to exceed $500.00 maximum.
    Full Auction fees will be charged to the consigner on rejected vehicles.
  5. Any deliberate misrepresentation of a vehicle will be grounds for arbitration at the Auction’s discretion. Deliberate misrepresentation may be grounds for terminating auction privileges.
  6. The arbiter may invoke his right to make a judgment call that may differ from published policy.
  7. Vehicles placed in arbitration must have a specific problem identified on the arbitration form. Arbitration is not an overall condition check of the vehicle, it is designed to verify or clarify specific problems found by the purchasing Dealer.
  8. Fleet Lease/ bank sellers from time to time may be granted their own arbitration policies. Please refer to that specific seller’s handout for up-to-date arbitration policy.
  9. CARFAX information is solely decided by arbitration. It is the Buyer’s responsibility to check. A vehicle may NOT be arbitrated due to any exception, event, odometer reading or any other discrepancy found in CARFAX, AUTOCHECK or any other vehicle history provider. It is the buyer’s responsibility to correct any errors with the history provider. Auction may or may not provide assistance in this matter at its sole discretion. Auction may review vehicle history reports to prevent fraud but any arbitration decision based solely on vehicle history reports will be at the sole discretion of the auction. Auction decision(s) will be final and binding on all parties.
  10. TITLES: SBAA guarantees title on vehicles sold through the auction. All titles must be free and clear of liens. All dealer consignment titles must be received within 45 days following the sale. All fleet lease/ bank sellers have 45 days to provide the title. During the allowed time frame the buyer has the rights to: (a) Return the vehicle to the auction for a full refund of the cost of the vehicle, (b) buyer fee, (c) transport charges, and (d) cost of expenses needed to prepare the vehicle for sale, not to exceed $500.00. Appropriate receipts must support all expenses claimed, which will be verified by the arbitration department. Any amount exceeding the $500.00 limit is not eligible for arbitration refund.

SBAA does not accept duplicate title applications or lien satisfied forms; If a car is bought with application for duplicate or lien package the vehicle cannot be resold at the auction.

Salvage title units that are announced at auction are sold AS-IS and are not eligible for arbitration for any reason.

Intentionally misrepresented or altered odometers will be handled on an individual basis. State and federal agencies will be notified and the seller will be banned from the auction.