Manheim Limited Powertrain Inspection Policy

Updated: February 12, 2018

The Limited Powertrain Inspection (LPI) is a basic powertrain only inspection that is aligned with the National Auto Auction Association's Arbitration Policy. LPI’s are based on the objective and subjective expertise of Manheim inspectors.

The LPI is conducted at a point-in-time as near to the conclusion of the vehicle sale as possible.  This assessment of the vehicle is a one-time inspection conducted under the vehicle operating conditions at that time; therefore, it is not feasible to inspect a vehicle in conditions identical to normal day-to-day operating state.

  1. LPI Guarantee
  • The Inspected Components (see list below) of a vehicle that passes LPI inspection criteria will come with a 7-day guarantee of function or condition.
  • The LPI guarantee is non-transferable and void if the vehicle is resold during the guarantee period.
  • Vehicles submitted to arbitration under an LPI must have 150 miles or less accumulated on the odometer between the time the odometer reading is recorded at the auction and the date of claim.
  • Manheim performs these inspections on a good faith basis and stands behind these passed components, whether Manheim provides this guarantee directly or in agreement with the seller.  If an Inspected Component is found defective during the guarantee period, Manheim reserves the right to remediate any valid complaints/problems estimated at auction wholesale repair cost.
  • In the event of a valid claim for defect related to an Inspected Component that was not identified by the LPI, Manheim will reimburse expenses incurred by the Buyer (excluding profit, commissions, and detail charges) on vehicles arbitrated. The amount of reimbursement that qualifies under these guidelines will be at the sole discretion of Manheim and will be limited to reasonable and documented expenses at auction wholesale repair cost.
  1. Vehicle Eligibility

The following vehicles sold at Cox Automotive U.S. Marketplaces are eligible for LPI:

  • Green light vehicles (Ride & Drive) equal to or greater than 125,000 miles
  • Green & Yellow light vehicles (Ride & Drive with Caution) equal to or greater than 125,000 miles
    • Items disclosed by the seller will not be inspected and/or guaranteed under LPI
  • Yellow light vehicles (Limited Guarantee)
    • Items disclosed by the seller will not be inspected and/or guaranteed under LPI
  • Vehicle Purchase Price over $3000
  1. Ineligible Vehicles

The following vehicles are ineligible for LPI:

  • Vehicles sold under Green light (Ride & Drive) under 125,000 miles
  • Vehicles sold with a price of $3000 or under
  • Vehicles sold in the TRA sales lane or Specialty Sale units, Motorcycles
  • Vehicles sold As-Is or deemed automatic As-Is per NAAA policy and Manheim policy (i.e. Kit / homemade vehicles, recreational vehicles, vehicles with major modifications, structural modifications, engine modifications, chipped ECU, etc).
  • Vehicles 20 years or older (Antique vehicles)
  • OVE offsite vehicle purchases not transported to a Manheim facility for processing
  • Vehicles with branded titles or defects that are eligible for a branded title, including, but not limited to: flood damage, salvage, rebuilt, lemon-law or trade-assist buybacks, TMU, et al.
  • Heavy Duty Trucks & Heavy Equipment categorized in Class A and B with Gross Vehicle Weight Rating (GVWR) of 26,000 pounds or heavier

Box trucks, such as:

  • Delivery drivers
  • Couriers
  • Furniture delivery

Trailers:

  • Tractor-trailers
  • Tractor-trailer buses
  • Truck and trailer combinations (Double and triple trailers)
  • Livestock carriers

Large buses, including:

  • City buses
  • Tourist buses
  • School buses
  • Segmented buses

Trucks:

  • Straight trucks
  • Dump trucks with small trailers
  • Flatbeds

Tanker vehicles

 

 

  • Exotic and/or handmade vehicles (including but not limited to):

AMC H1

Ford GT

Mitsubishi Lancer Evo

Aston Martin

Lamborghini

Nissan GT-R

Audi R8

Lexus IS-F, LFA, and F/F Sport

Panoz

Bentley

Lotus

Porsche 911

DMC 12

Maserati

Rolls-Royce

Dodge Viper

Maybach

Subaru WRX

Ferrari

McClaren

 

Fisker

Mercedes SLR models

 

  1. Inspection Components

The items checked within the performance of the LPI are:

  • Structure check
  • Engine function and operation
  • Transmission engages and functions
  • Drivetrain engages and functions
    • 4X4 system engagement
    • Differential engagement
  • Hybrid / Electric Battery check

 

  1. Sale and Arbitration Conditions

The LPI purchase is subject to the following.

  • The buyer is responsible for the LPI fee regardless of vehicle pass or fail.
  • The sale of the vehicle is NOT contingent upon the availability of the LPI.
  • A “failed” LPI results when the Inspected Components of a vehicle meet arbitration policy criteria, which make the vehicle eligible for arbitration.  In such event:
    • The Buyer has the option to enter the arbitration process and:
      • Void the transaction, with the sale being unwound as “Buyer Withdrew”;
      • Or, complete the transaction on mutually agreeable terms with the Seller with the sale completed as “Buyer Bought”.
        • If terms are agreed and the sale is completed, the Buyer has no further right to arbitrate for any reason.
    • The Seller has the option to take back the vehicle with the sale being unwound as “Seller Withdrew”.
  • For in-lane vehicle and Simulcast purchases, a defect on a vehicle for which LPI was purchased and “passed inspection” is eligible for claim resolution if:
    • A defective component or condition is found within the guarantee period, based on the timeframe purchased;
    • A defective component or condition is within the scope of the inspection criteria;
    • A defective component or condition is estimated to cost $500 or more to repair or replace, with the estimate based solely on Manheim’s wholesale cost.
  • For OVE purchases, a defect on a vehicle for which LPI was purchased and “passed inspection” is eligible for claim resolution if:
    • A defective component or condition is within the scope of the inspection criteria;
    • A defective component or condition is estimated to cost $400 or more to repair or replace for a single item or $800 or more to repair/replace cumulatively, with the estimate based solely on Manheim’s wholesale cost.
  • For defect states noted above, the defect must be eligible for claim resolution with Manheim and Manheim reserves the right to remediate the claim.
  • Notwithstanding anything herein to the contrary, the seller remains liable for issues that fall under the required disclosures and timelines as per NAAA policy, and in such a case, arbitration with the seller may occur.
  • Any claim for arbitration under the LPI must be submitted within the guarantee timeframe (defined as the time between the date of completion of the LPI and the date of claim).   If a vehicle return is required, the vehicle must be returned within the stated deadline established by the facilitating location in the same or better condition as when sold.
  • If a vehicle is returned and Manheim assumes ownership, reimbursement of vehicle purchase price will not exceed 102% of MMR at the time of original purchase by the buyer.
  1. Inspection Methodologies and Non-Arbitral Items

Manheim’s  LPI inspections are based on our technician’s expertise, as well as with utilization of expert source information for items such as repair costs; items inherent to a vehicle based on make, model, year and other factors (e.g., “known conditions”); and, generally accepted practices and standards (e.g., “NAAA Leak classes”).  Manheim draws its conclusions on a good faith basis for each inspection from all of this observation, data and guidance, with the vehicle state as-is at the time the vehicle is inspected.

Certain temporary or non-material conditions will not qualify an inspection for failure, such as:

  • Y-codes that were cleared prior to inspection or were not active at time of inspection, if reason is known and deemed non-material;
  • Wearable items considered normal wear and tear;
  • Leaks, noise and other items that are generally considered inherent to that particular vehicle,
  • Note that Leak Class 3, per NAAA guidelines, would require the inspection to fail;
  • Other similar circumstances.

Manheim performs its inspections based on NAAA and industry best practices, with the following caveats in mind:

  • OEM-installed under body cladding will not be removed from the vehicle;
  • Vehicles may not be driven at speeds high enough to simulate all driving conditions;
  • Vehicles will not be driven for long durations to simulate extended driving conditions.

Note that buyers of PSI are encouraged to discuss the results with the PSI facilitating location.

  1. LPI Fail Resell Disclaimer

In the event that arbitration results in a sale being unwound based on a failed LPI, the seller shall either repair or disclose the results of the failed LPI when re-running the vehicle at Manheim.  Failure to do so may result in seller being held responsible for reimbursement of any subsequent failed LPI for such vehicle.

  1. Rights Reservation

Manheim reserves the right to modify, alter, discontinue or terminate this policy at any time for any reason whatsoever, with or without notice.  In addition, Manheim reserves the right to decline to offer this service to any person or entity at its discretion.