What is the Limited Guarantee?
Updated: May 4, 2015
The NAAA Standards Committee benchmarked various auction company and consignors versions of the 'powertrain only' guarantee and created the NAAA Limited Guarantee.
The Limited Guarantee is indicated in the lanes and electronically via announcement and/or the yellow light only. Disclosure requirements for defects or issues over the NAAA's policy dollar amount threshold include the follow areas/items:
- Major Components
- Engine problems
- Cracked or Repaired Block
- Transmission problems
- 4x4 System problem
- Vehicle History Issues
- Structural Damage/Certified Structural Repair or Replacement/Structural Alteration
- Not actual miles/Inoperative Odometer
- Salvage or Reconstructed/Theft Recovery/Stolen vehicles (including history)
- Flood Damage (by Auction Inspection, discovered by DMV and/or Insurance company records)
- Lemon Law/manufacturer's buyback
- Grey Market Vehicles
- Vehicles being sold with no title (Bill of Sale only)
- Bio-Hazard vehicles as required by law
- Other Issues
- Vehicles being sold with a CO, MSO, or Repo Affidavit title (if required by law)
- Pending state or local DMV fees or taxes over $100 due on vehicle (if required by law)
- Any disclosure required by law
The Limited Guarantee can be offered on all vehicles including vehicles priced $3,000 or under.
All Time Periods and Mechanical defect dollar limits are according to the Arbitration Guidelines section of the latest version of the NAAA Arbitration Policy.