ARBITRATION NEWS FROM GREG MAHUGH
August 5, 2008
We have held a number of town hall meetings over the course of this year; the purpose of these meetings has generally been two fold:
1. To ask you how we can do a better job of providing policies that promote an environment for
buying and selling at DAA, and:
2. To give you insight into how we intend the policies and policy changes to work and be used.
We have made - and will be making - some important changes to our lane monitors and arbitration policies.
Lane Monitors – We have all grown to rely more and more on the automated delivery of information related to vehicles and transactions. The lane monitors that we installed last year are the most accurate and complete record of information that we have for each consigned vehicle. We will be adding two new fields to the vehicle information this week:
1. Current Title State
2. Original Title State
This information will be derived from the Autocheck (Experian) data that we purchase and should allow bidders to make more informed decisions before buying.
Additionally, the “drive type” is displayed on all vehicles with conforming VINs. With the proliferation of vehicles that can be configured as either 4WD or 2WD, we are not requiring that the auctioneer make a verbal announcement of either. We do expect bidders and sellers to look at and rely on the monitors and the information shown there.
Arbitration Policy Change - We will be introducing a new “White Light” sale status in the next few weeks that will be the default standard for vehicles offered with between 100,000 and 150,000 miles and less than 10 years. The coverage under the “white light” will be focused on the primary drive train and will not cover:
1. Non-structural corrosion
2. Minor valve train and upper engine noise
3. Check engine lights (non-transmission related)
4. Defects that would cost less than $500 to repair per occurrence
(all repair estimates based on DAA shop standard pricing)
At the same time, we will return to the policy of “green light” being the standard for all vehicles under 100,000 miles and less than 10 years old with no exceptions or reduction in coverage at 75,000 miles. Seller can always select the appropriate light status for any vehicle offered.
Regards,
Greg Mahugh
Senior Vice President
General Manager
If you have questions or comments regarding the above information,
please click here to send us an email.
