Arbitration Policy
Updated November 8, 2023
Overview
Otolane is an online used vehicle auction platform (the "System") exclusively for the use of registered motor vehicle dealers. The goal of the System is to provide a user-friendly, honest and efficient means for the buying and selling of vehicles dealers.
At Otolane, we encourage our valued customers to familiarize themselves with this policy in depth and to not conduct any business via the System until they have done so.
Any revisions or changes to the policy may be subject to change and Otolane will do its best to inform customers within a reasonable timeframe of any changes.
This policy is not in place to be used as a bargaining tool to negotiate lower pricing on vehicles. It is important for all buyers to understand that when purchasing in the used vehicle wholesale marketplace, there is a certain level of wear and tear that should be expected along with all mechanical, body and miscellaneous other disclosures provided on the platform within a vehicle’s listing.
We have added a quick reference below to give our customers an idea as to whether a vehicle is eligible for arbitration. Only undisclosed issues are eligible for arbitration and are subject to the dollar thresholds described under Section 5—General Policies. Please refer to the table below:
Icon
Meaning
Arbitration Eligibility
Disclosure Warnings and/or Vehicle Damage
Ineligible
AS-IS
AS-IS Vehicle - A seller must disclose anything that will materially affect the value of a vehicle. Therefore, any major mechanical issue still requires disclosure.
Title and branding issues (including total loss), structural damage, odometer issues (rollback, TKU)
Disclosure
Explanation
Timeframe
ABS Defective
If the anti-locking system is not operational and the repair is over the threshold
Standard
Accident Repair
If there is a claim of $3,000 or more ($2,000 in BC) or if the estimate amount is $3,000 or more
Standard
Adjacent Panels Replaced
If two (2) or more adjacent panels have been replaced. Bumper panels are excluded
Standard
Air Bags Missing/Defective
If the airbags are missing or not operational and the repair is over the threshold
Standard
Alternative Fuel or Conversion
If the vehicle uses propane or natural gas or ever had propane or natural gas fuel system
Standard
Excessive Rust
If the vehicle has excessive rust that affects the integrity of the frame or any structural component
Standard
Fire/Flood Damage
If the vehicle has been damaged due to a fire or flood - Flood meaning the vehicle has been damaged by water or other liquid that has penetrated the vehicle to a level of the floorboards or higher
Extended
Grey Market
If the vehicle was ever registered in a country other than Canada or the United States in the past 36 months or manufactured not in compliance with North American standards
Standard
Incorrect Vehicle Badging
If the vehicle has any logo, badge, decal, emblem or similar markings that do not match the make, model or series of the vehicle
Standard
Irreparable
If the vehicle title is branded as irreparable and not roadworthy and deemed for parts or scrap
Extended
Salvage
If the vehicle title is branded as such and not roadworthy and deemed salvage
Extended
Rebuilt
If the vehicle title is branded as such and considered road worthy
Extended
Total Loss/Insurance Write off
If the vehicle is deemed as such by an insurance company whether title is branded or not If the vehicle is bought from a salvage auction - disclosure is required
Extended
Title Branded
If the vehicle title is branded - the brand must be declared
Extended
Major Repairs
When the repair costs exceed the arbitration dollar threshold, the seller must disclose the defective component - Major components include:
Standard
Engine - Transmission - Power Train - Electrical system - Air Ride Suspension - AC system (AC Needs Repair applies strictly to vehicles 5 years old or newer)
Standard
Computer Components - Fuel System - Emissions System (including Catalytic Converters)
Standard
Anti-Locking Braking System - Hail Damage - Interior Damage
Standard
Sub Frame Damage - Hidden Undercarriage Damage
Extended
Manufacturer Repurchase
If the vehicle has been repurchased by the manufacturer under the Canadian Arbitration Plan or under the laws of any jurisdiction including the U.S.A. lemon law
Standard
Material Variation
If the vehicle varies materially from the manufacturer's original specifications
Standard
Mileage Discrepancy
Minor odometer discrepancies of less than 3,000 km or 5% (whichever is less) are not subject to arbitration. Any vehicle with a mileage discrepancy of 3,000 kms or more or 5% (whichever is less) is subject to arbitration.
Extended
Odometer 5 Digit
If the odometer is a 5-digit odometer and has over 100,000 kms or miles
Standard
Odometer Broken/Faulty
If the odometer is broken/faulty - a statement to that effect of total distance traveled in unknown and last true known mileage is required to be declared if known
Extended
Odometer in miles
If the odometer is in miles - if the vehicle is a previous US - requires two declarations
Standard
Odometer Replaced
If the odometer has been replaced - a statement to that effect of total distance traveled - if unknown a statement of TKU may also be required
Extended
Odometer Rollback
If the odometer has been rolled back - a statement to that effect of total distance traveled - if unknown a statement of TKU may also be required
Extended
Odometer Unreadable
If the odometer is not readable - a statement to that effect of total distance traveled - if unknown a statement of TKU may also be required
Standard
TKU
If the total distance traveled is unknown - a statement to that effect - If the last true known distance is known through reliable records - a statement of the last true known mileage with date is required
Extended
Out of Province
If the vehicle has been registered in another province a disclosure of each province is required PLEASE NOTE: SOLD IN ONTARIO: A vehicle remains out of province if the vehicle has been registered for less than 7 consecutive years in Ontario. A disclosure of each province is required
Standard
Paint Work
If the vehicle is a current model year and newer - a disclosure of PPW is required
Standard
Previous Daily Rental
If the vehicle was used as a daily rental a disclosure is required (unless subsequently owned by a non-dealer)
Standard
Previous Driving School
If the vehicle was used as a driving school vehicle a disclosure is required
Standard
Previous Emergency Services
If the vehicle was used for emergency services a disclosure is required
Standard
Previous Police Vehicle
If the vehicle was used as a police cruiser a disclosure is required
Standard
Previous Racing Vehicle
If the vehicle was used in organized racing a disclosure is required
Standard
Previous Taxi/Limo
If the vehicle was used as a taxi or limo a disclosure is required
Standard
Stolen and Recovered
If the vehicle was stolen and recovered a disclosure is required
Extended
Structural Alteration
If the vehicle's structure has been altered ex. shortened, lengthened, modified suspension, used as a snow plough, fifth wheel or hitch a statement to that affect is required
Standard
Structural Damage
If the vehicle has structural damage that meets the definition of structural damage as per industry standards in Canada- a statement to that effect is required
Extended
Structural Accident Repair
If the vehicle has structural repair that meets the definition of structural repair, as per the industry standards in Canada PLEASE NOTE: Structural repair must meet the UVMS - Used Vehicle Measurement Standards
Extended
Structural Accident Replacement
If the vehicle has structural replacement that meets the definition of structural replacement under the industry standards in Canada PLEASE NOTE: Structural Replacement must meet the UVMS - Used Vehicle Measurement Standards
Extended
U.S. Vehicle
If the vehicle has been registered in the United States or manufactured not in compliance with Canadian standards, a disclosure is required
Standard
VIN Plate
If the vehicle's dash VIN plate has been changed, removed, altered or replaced it can only be offered for sale if replaced in accordance with provincial and federal regulatory requirements. No vehicle can be offered for sale if the original VIN plate is not intact, unless declared as changed, as stated above.
Standard
Warranty Cancellation
If the vehicle's warranty has been cancelled by the manufacturer or if the manufacturer has given notice to cancel, a statement to that effect is required. Any warranty cancellation given after the date of sale will not be subject to arbitration
Standard
Vehicle Information
If the vehicle's year, make, model and trim level are not accurate and affects the value of the vehicle EX: 2 WD instead of 4WD - Manual transmission instead of automatic - 2015 instead of 2016, etc
Standard
Total Loss/Insurance Write off
If the vehicle is deemed as such by an insurance company whether title is branded or not If the vehicle is bought from a salvage auction - disclosure is required
Extended
Ownerships
If the vehicle ownership has not been transferred to the buyer seven (7) business days after the vehicle has left the seller's possession the buyer can file for arbitration
Extended Once filed - the seller has 48 hrs
Liens
No vehicle is to be offered for sale with an active Lien - all vehicles are required to be free and clear of any Liens. If a vehicle sold has a Lien - the buyer can file for arbitration
Extended Once filed - the seller has 48 hrs