Policy Guide

Table of Contents

• Vehicle Registration Policy
• Selling Light System
• Arbitration
• Title Information
• General Policy
• NAAA Structural Damage Policy

Vehicle Registration Policy

Registration Hours

Monday - 8:00 AM to 5:00 PM

Tuesday - 8:00 AM to 8:00 PM

Wednesday - Doors open 7:30 AM to 5:30 PM

Thursday - 8:00 A.M to 5:00 PM

Friday - 8:00 AM to 5:00 PM

• Reserved numbers are not transferable to another dealer.
• Late cars may be run at the end of the lane.
• The first fifteen numbers in each lane are free re-runs, if properly registered, represented in proper sequence, and are a "NO SALE" the first time across the block.
• The last twenty vehicles in each lane qualify for a free registration for the following week's sale if unsold. Units must be reregistered on sale day and remain on PADE's property.

Pre-Registration for Vehicles on Premises before Monday

• Reserved numbers may be obtained before Monday morning if the vehicles are on PADE's premises and keys are in the office, or at a PADE authorized reconditioning shop.
• The auction will assign numbers as close to the requested numbers as possible.
• Pre-registered vehicles cannot be removed from the premises.
• No substitutions on pre-registered vehicles.

Dealer Express

• Dealer express lanes are open to any registered dealer.
• Numbers are reserved in blocks of 10 or more for lanes 6, 7 and 8, and blocks of 5 or more for lane 9, and may run any vehicle regardless of year, make or model, with the exception of oversized units.
• Reserved numbers are assigned on Tuesday evenings for the following week's sale. Requests for dealer express blocks can be directed to the auction until 5PM on Tuesday evening.
• Lane and number assignments are based upon a prior run history. For additional information, contact the auction.

Cancellations

• Open number cancellations will be taken Mondays up until 5PM with no cancellation fees. After Monday at 5PM, any unused number or pre-registered cancellation will be subject to a $40 fee.

Gate Passes

• All units must have a PADE bill-of-sale or gate pass in order to leave the premises.
• Gate passes may be obtained on sale day at the auction block, the kiosks or at the registration office.
• Security guards are not authorized to issue gate passes.

Selling Light System

Green Light—"Drive"

• Buyers should thoroughly check and road test every car to determine if it is properly represented.
• Buyers have NINETY MINUTES from time of sale OR ONE HOUR after the close of the last lane, whichever comes first, to register a complaint in the arbitration office.(See arbitration guidelines.)
• Any vehicle unsafe to drive on the highway may be rejected when sold with a "Drive" only.

Yellow Light—"Listen"

Sold with a "Drive" subject to the following conditions which must be announced:

• Defects in engine, transmission and drive train, flood vehicles, police vehicles, taxi's, and frame damage (repaired or not). (See NAAA structural damage policy.)
• Vehicles sold with a "Repo Pack" will be sold under the "Listen" Light.
• Sellers are responsible to ensure that all mileage discrepancies are properly announced on the auction block and are noted on the bill-of-sale when sold.
• Sellers must announce if the odometer is broken, repaired, replaced, inaccurate, or in excess of 100,000 or 200,000 miles, etc. even if sold as "not actual miles".
• Vehicles sold "exempt" cover all odometer discrepancies.
• Inoperable or inaccurate odometers must be announced on any vehicle.
• Odometers that register in kilometers must be announced.

Purple Light—"4x4"

• It is at the discretion of the seller to disclose that a vehicle is four-wheel drive or all-wheel drive. If the purple light is not on, the buyer should assume two-wheel drive.

Red Light—"As Is"

• Sold with "NO DRIVE", there is no arbitration except for odometer, flood or title discrepancy.
• Vehicles sold for under $2000 are considered "AS IS".
• Announcements or "window memos" regarding the merits of an "AS IS" vehicle are prohibited unless they are safety related.
• All Title Brands, and flood vehicles must be announced even if sold "As-Is." PADE will not assume responsibility for title brands discovered after 90 days from date of sale.

Blue Light—"Title Delay"

• Assignable title does not accompany car.
• PADE reserves the right to reject the title, if not received in 10 working days, excluding weekends and national holidays.
• Buyer is cautioned not to spend any money on a titled-delayed vehicle, not to excessively drive the vehicle, not to damage the vehicle, or sell the vehicle until the title arrives.
• Special arrangements must be made with the auction in advance, if the vehicle is to be returned for lack of title. If title has been mailed to buyer, the vehicle cannot be returned. No refunds will be given unless the auction's instructions are followed.
• A service fee will be deducted from the seller's check for vehicles sold without an assignable title. The title delay fee is retained by PADE even if the vehicle is returned for no title.
• Drafts cannot be exchanged for checks.
• If "Title Delay" is not announced on the block, and the vehicle is sold without assignable title, the buyer has the right to reject the car. If accepted, the seller will be charged an additional fee.
• In matters of interpretation of title policy, the decision of auction management shall be final.

Arbitration

The buyer has NINETY MINUTES from time of sale to register a complaint in the arbitration office.

Fleet/Lease vehicles must be arbitrated within one hour of the close of the fleet/lease lanes.

Any price adjustments eliminate further arbitration for mechanical defects.

Dealers must finalize arbitrations prior to the close of the arbitration office; failure to do so may result in the forfeiture of arbitration of said vehicle.

The auction must be notified within 7 days of purchase on the following discrepancies; previously voided factory warranty, structural damage, damage to engine cradles, blocks, and drivetrain housings that require replacement, and vehicles determined to be police, taxi, or flood damaged.

Any irregularity in odometer reading must be brought to auction management before the close of the arbitration office on sale day. The auction will not become involved in mileage disputes.

Sellers are required to buy back any vehicle with documented mileage discrepancy discovered within 90 days of sale.

No Arbitration or Rejection on the Following:

1. Obvious visible defect
2. Power accessories
3. Air conditioning
4. Smoking or blow-by (unless excessive)
5. Oil leaks & transmission leaks (unless excessive)
6. Steering and brakes, unless declared unsafe
7. CV joints and bearing/hub assemblies
8. Warning lights and gauges, except for temperature, oil, and SRS lights.
9. Engine or drivetrain noises that are inherent or typical to a particular model or manufacturer, unless deemed "excessive" by the Auction.

Frame Policy

Must be announced or sold "AS IS":

• NAAA Structural Damage Policy
• Minor components welded or removed from the frame, including trailer hitches, bumpers, etc. and minor dents in the frame or minor tie down hole tears that do not affect the structural integrity of the frame, are not considered frame damage.

The Following Must Be Arbitrated Before the Closing of Arbitration Office on Sale Day:

1. Inoperable or inaccurate odometers. "AS IS" units included.
2. Missing catalytic converters & major emission components.
3. Missing or deployed airbag.
4. Any vehicle misrepresented by advertisement, logo or decal is arbitratable; any exceptions must be announced under the "Yellow Light."
5. Vehicles pending in Post Sale Inspection

Title Information

Title Conditions That Must Be Announced

• All Title Brands
• Improper Reassignments & Signatures
• Wrong Year or Make
• Mileage Discrepancies Including Exempt
• Salvage Certificates

Unacceptable Titles

• Mileage Write Overs
• Alterations
• Wrong or Missing Digits
• Erasures or White Outs
• Severed Titles
• Missing Forms
• Canadian or Foreign Titles

Certificate of Origin

• Vehicles sold on Certificate of Origin must be announced.
• Only Franchised Dealers for make of car being sold may sell on Certificate of Origin.
• Buyer and seller must sign a special release form; PADE will not be responsible to buyer if sales tax is applicable.

Title Settlement

• Titles for vehicles sold with titles must be turned in at the appropriate settlement window within 2 hours of the vehicle sale, or the close of the auction lanes, whichever occurs first.
• Titles may be submitted any time prior to Wednesday's sale; pre-posted titles will be checked and entered into the system.
• The auction will not be responsible for mailed titles that become misdirected or lost; a lost title is not a valid reason for vehicle return.

General Policy

Abandoned Vehicles

• Vehicles left on PADE property over 30 days will be considered abandoned and may be removed by a licensed salvor.
• Dealers may contact the salvor to discuss redemption of towed vehicles and negotiate any towing and/or storage fees that have been accrued.

Announcements

• Seller assumes full responsibility for making any and all announcements at the time of sale.
• It is the Seller's obligation to correct any errors made by the auction as to announced "Conditions."
• PADE will not assume responsibility for omissions, incorrect year or model, improper equipment listings, failure to make announcements on the auction block, or verbal commitments between buyer and seller.
• It is the Buyer's obligation to watch lights and listen to announced "Conditions." Failure to do so is not grounds for rejection.

Buyers

• Buyers should carefully examine vehicles before bidding, listen to announced conditions and watch lights.
• The mileage and year crayoned on the car window is only a guide and should not be relied upon. It is the buyer's responsibility to verify the actual odometer reading before bidding.
• Vehicles may not be test driven until you have signed the bill-of-sale. Please check serial number and plate before settlement.
• All bidders must have a current bidder badge and valid auction card, which must be presented immediately upon completion of purchasing a vehicle. Anyone bidding without valid auction card will be subject to prosecution.
• All vehicles must be settled for on sale day by payment or floorplan. Unpaid vehicles will incur a service fee.

Canadian Vehicles

• Sellers must inform Registration/Operations that a vehicle is a Canadian vehicle at time of Registration.
• Sellers must bring Canadian vehicles to Auction Security the day prior to Sale Day with paperwork.
• Vehicles are sold under the Yellow Light.
• Sellers are also required to have U.S. titles; U.S. D.O.T. Release form (unless 30 days has passed from time registered improter examined vehicle) and the seller is responsible to ensure that the vehicle meets all applicable U.S. D.O.T standards for importation.

Children

• Due to insurance and safety regulations, no children will be permitted at PADE unless in possession of a valid drivers license. NO EXCEPTIONS!

Component Replacements

• On vehicles 5 years old or newer, replacement engines and/or drive train components must be announced if they are NOT the same model as the original, or if they are older than the original.
• On older units, replacement components must be comparable to original equipment.

Dealer Parking and Vehicle Storage Areas

• The parking area on the south side of Rt. 295, opposite the selling lot, is for sale day dealer parking.
• Storing vehicles or loading transports on the blacktop is not permitted.
• Parking on Industrial Road is prohibited by township ordinance.
• Storage areas are provided as an added service for registered dealers. PADE's security regularly patrols these areas, however, the auction is not responsible for damage, loss, or theft of any vehicle left on the premises.

Dealer Registration

• PADE is a participating Auction Access Auction - individual auction policies apply.
• Only currently licensed and properly registered dealers may transact business at PADE.
• All persons signing a bill-of-sale must be registered, in writing, with the auction as an authorized representative.
• Dealer is responsible for all business transacted by representatives under the company name at PADE until terminated in writing and ID card is returned to the auction.
• All changes of ownership, authorized representatives, banking information, addresses or telephone numbers must be reported to the Credit Office at the time of change.
• Only company checks in the business name will be accepted. Drafts and personal checks are not acceptable. Buyers' checks are deposited immediately.
• Service fees will be charged on all returned checks.

Electronic Data Vehicle Histories

• The auction does not guarantee information listed in any electronic data vehicle history (i.e., Carfax, Auto Check, etc.) and will not arbitrate solely on EDVH data.

Gas Policy

• It is every seller's responsibility to make sure that vehicles brought here for sale have an adequate supply of fuel.
• Vehicles that are determined to be out of fuel will be automatically provided with enough fuel to run through the auction, and the seller of the vehicle will be charged a service fee.

Gray Market Cars

• "Gray Market" cars are not acceptable for sale.

Handicap Parking

• Handicap parking is available by request, contact security or operations for details.

Odometer Statements

• Odometer statements are incorporated in our bill-of-sale and must be signed by the seller at the time of registration and by the buyer at the time of purchase.
• Federal law requires that both buyer and seller sign and print their names.

Reconstructed, Major Damage History, Recovered Theft or Salvage Vehicles

• Reconstructed, major damage history, recovered theft, and salvage; covers all frame problems plus structural and component changes, and the vehicles must be announced accordingly even if sold "AS IS".
• All vehicles with reconstructed, major damage, recoverd theft, salvage or flood history must be announced in accordance with information provided by auction protection system, and must be arbitrated within 90 days of the sale.

Revving Engines

• Due to safety considerations, revving engines is strictly prohibited.

Sale of Antiques or Miscellaneous Units

• Auction does not guarantee the year of any antique or miscellaneous unit.
• Motorcycles, Recreational Vehicles, Watercraft, Trailers, Snowmobiles, Non-Factory 4-Wheel Drive Conversions, or any other units that cannot be properly test-driven are sold "AS IS."
• The buyer assumes full responsibility for defects.
• Any vehicle that may be titled or registered in the state of Pennsylvania must be sold with proper documentation showing proof of ownership. These vehicles may not be sold as; "bill of sale, no title."
• Any miscellaneous vehicle sold without a title must be announced as "bill-of-sale, no title."

S.O.S. - (Sold Outside), "IF", O.B.D. (Off Block Deal)

S.O.S. Sales

• Vehicles sold before crossing the block are strictly between the buyer and seller and are not binding on either until the sale has been consummated.
• After settlement the vehicle becomes the "AS IS" property of the buyer.

"IF" Sales

• Accepted "If" bids are binding on the buyer for one hour and following approval are subject to the normal auction arbitration policies.

O.B.D.

• Vehicles sold after crossing the block are "Off Block Deals" and are binding on both parties and subject to all auction policies.
• All vehicles purchased or sold on premises must be paid through Auction Office; failure to do so will subject both buyer and seller to loss of trading privileges.

Speed Limit

• For your safety, the speed limit on PADE property is 10 mph at all times.

Tampering

• Persons found tampering with or removing equipment from vehicles will be subject to suspension from the sale and will be prosecuted.
• Dealers will be held responsible for the actions of their employees.

Test Driving

• No test driving is permitted on PADE premises; a properly signed bill-of-sale is required for release for all test drives.

Tipping

• PADE's staff tries try to render the best possible service to each customer. Tipping could spoil the spirit of that service and, therefore, is prohibited.

Transports

• Transports are not allowed in the selling area at any time.
• Rollbacks are permitted, except when sale is in progress.

Unsafe Vehicles

• Sellers must report any unsafe vehicle to the Operations Office; PADE's management will determine if the vehicle will enter the selling lane or be sold in spot.

Vehicle Identification Number (VIN)

• All units must have legal and legible VIN plates and are subject to inspection by PADE's Vehicle ID Unit, State Police, FBI and NICB Agents.
• Units with VIN plates having replacement rivets will not be offered for sale.
• The sale of vehicles with warranty stickers, which are mutilated, missing, illegible or do not match the VIN, as well as illegible VIN plates, may be delayed in order to be checked by authorities.
• On Motor Homes, Dune Buggies or Kit Cars, the year of the chassis and the year of the body must be announced.

Wheelchairs

• For your protection, wheelchairs and personal motorized vehicles must be equipped with flags (the auction can provide these for you).

NAAA Structural Damage Policy

1. Seller's Disclosure Requirements: Seller must disclose structural damage, repairs or replacement as outlined in this policy prior to selling a vehicle at auction. The recommended declarations are:
   • Structural Damage - The vehicle has structural damage and/or repairs and will not be subject to arbitration under this policy.
   • Certified Structural Repairs - The vehicle has sustained damage to a specifically identified structural component, which has been repaired, and the vehicle has been certified to be within the Used Vehicle Measurement Standard (UVMS). The vehicle, if properly announced, may be arbitrated only for improper repair of the designated area, existing damage or repairs to other areas, or failure to be within the UVMS (see para. 3).
   • Structural Alteration - The vehicle has an altered frame or unibody as specifically announced. The vehicle can be arbitrated only for damage or repairs to structural components other than those disclosed or in the event of improper alteration. Such a disclosure should be made for the following alterations, unless they are clearly obvious by the appearance of the vehicle:
     • Frame lengthened or shortened.
     • Suspension altered.
     • After market accessories installed/removed.
     • No Disclosure is required for properly installed towing package.
2. Seller's Disclosure Not Required: No declaration will be required for existing insignificant damage or repair thereof. Insignificant damage is defined as:
   • Damage due to transport tie-down, improper jacking or lifting or contact with parking abutments and/or road debris, provided that the vehicle is within the UVMS.
   • Damage solely to glass or bolt-on components.
3. Used Vehicle Measurement Standard: For purposes of arbitration under this policy the Used Vehicle Measurement Standard (UVMS) specifications are:
   • The vehicle will measure to a tolerance of no more than +/-8mm of published specifications in length, width and height at all master control points; and
   • Symmetrically (comparative measure from side to side and point to point) the length, width and height must measure to a total tolerance of no more than 6mm. In each case the fender to door, door to door, and/or door to quarter panel gaps must indicate proper fit of the panels.
4. Measurement of Vehicles: Selling auction will, at its discretion, have a vehicle measured at a facility of its choice. Prior to measurement a vehicle must first visually indicate a physical condition to warrant the measurement. Purchaser will agree to pay for this measurement if the vehicle is within the UVMS. Seller will be responsible for charges if the vehicle is found to be beyond the UVMS.
5. Undisclosed Structural Damage or Repair: A vehicle may be arbitrated if it has undisclosed existing or repaired damage, which should have been disclosed under this policy, even though the vehicle is within the UVMS.
6. Arbitration Period: Buyer must arbitrate improperly disclosed structural damage within 7 calendar days from date of purchase. The vehicle must be returned to the selling auction, or to an auction or facility designated by the auction within 7 calendar days of arbitration.
7. Buyer's Reimbursement by Seller: In the event of improperly disclosed structural damage the Seller will be responsible to reimburse the Buyer for:
   • The actual price of the vehicle,
   • The buyers fee,
   • Inspection and arbitration fees incurred at the auction, and
   • Reasonable transportation costs actually incurred transporting the vehicle to and from the Buyer's dealership.

Rules are subject to revision periodically. Watch Market Reports and Bulletin Boards for special announcements. In matters of interpretation of Auction Policy, the decision of Auction Management shall be final. Please familiarize yourself with these policies and procedures. We value your business and are making every effort to make Wednesdays at PADE both pleasant and profitable for every dealer!

PADE is a wholesale vehicle auction that provides a forum where currently licensed vehicle dealers can buy and sell vehicles. PADE requires that all buyers and sellers follow its current "Policy Guide" in transacting business at PADE. However, it is important to understand that neither PADE nor its auctioneers make any independent inspections or representations concerning the condition of the vehicles that are offered for sale. Accordingly, buyers are reminded that they must inspect vehicles carefully prior to purchase. Both buyers and sellers are advised to read the back of the bill-of-sale for information concerning the liability of a seller for misrepresenting a vehicle at PADE.