For vehicles arbitrated for failure to produce title, Buyers may be assessed a penalty for excessive mileage for any vehicle returned with more than 500 miles above what is noted on the Bill of Sale.
For each mile over the 500-mile allowance, the charge will follow the IRS mileage rate (currently .625 per mile) but will not exceed 10% of auction sale price.
For lower priced vehicles, if the penalty exceeds 10% of the vehicle sale price, the Arbitrator may adjust the charge to the higher of $500 or 10% of auction sale price.
Example: $4,000 vehicle is returned with an additional 2,000 miles. The Arbitration will calculate 1,500 excess miles X .625 = $937.50. The Buyer is charged $500 since the calculated charge of $937.50 is higher than 10% of sales price.