Auction Terminology

•Announcement — A note about the vehicle’s condition listed on the vehicle summary report when listed for sale.

•Arbitration — Third party dispute resolution. This service is provided by auction houses to protect the interests of both buyers and sellers to ensure the transaction has been properly represented.

•"As Is" (See Red Light) — Specifics on what constitutes an "as is" vehicle vary among auctions. Generally “as is” refers to vehicles six years or older which have more than 100,000 miles registered on the odometer or vehicles on which the odometer is suspect.

•Auction Access — The national dealer registration system used at some NAAA member auctions. It allows a dealer to register electronically and reserve a bidder badge. The system allows a dealer to be pre-registered automatically at participating member auctions.

•Auction Guarantee — Guarantees vary among auctions, but usually cover the drivetrain, including the engine, transmission, and rear end.

•Bidder Badge — A credential that indicates a buyer's bidder number for a specific sale. The buyer is registered with Auction Access, and the bidder number is connected to the buyer's Auction Access account.

•Bidder Number — The number issued to each qualified buyer on sale day.

•Bill of Sale — A document provided by a seller showing the name of the purchaser and the purchase price. It becomes the basis for the calculation of sales and other taxes.

•Black Book — Wholesale prices guidebook.

•Block — The auctioneering and business transaction station in each auction lane.

•Block Clerk — The person who records transaction information in the lanes.

•Block Ticket — An invoice. A computer-printed paper trail generated by the auction house that documents the auction from registration through sale.

•Blue Light — A signal at an auction for when an assignable title does not accompany the vehicle. The seller has 30 days to provide an assignable title to the auction. During the auction, a blue light is turned on during bidding.

•Buyer's Fee — A fee paid to the auction house by the winning bidder. The amount of the fee varies.

•Condition Report — A report completed by the selling dealer or auction house on each unit that is to be sold. The condition report includes a description of the vehicle (make, model, optional equipment, etc.); the condition and estimated repairs needed on the body, interior, and/or for any mechanical defects; and a summary of the estimated repair costs.

•Consignment — Vehicles assigned to an auction for sale.

•Consignor — Someone who provides vehicles for sale at the auction. Consignors include automakers selling program cars, rental and corporate fleet operators, and individual dealers.

•Float—Extra time offered to dealers to pay for vehicles they have purchased at auction.

•Floorplanning — A dealer's vehicle inventory line of credit.

•Floor Price — The seller's asking price for a vehicle.

•Frame Damage — Any damage to the frame or frame members of a vehicle.  Refer also to the NAAA Frame Policy.  Also called structural damage.

•Frontline Ready — Vehicles that are in retail-ready condition and ready to be put in the frontline of a dealer's lot.

•Get Money — An instruction given to the auctioneer to if the car even if the bid is way off the floor, or if without a floor. 

•Green Light — Auction term for a vehicle that is sold with some buyer protection as to its condition. During the auction, a green light is turned on during bidding.

•If-Bid — An offer made between a buyer and a seller, but not binding on either party until the sale is completed. It is usually facilitated by the auction house. The buyer agrees to buy the vehicle "If" the seller will accept the offer within a specified period of time.

•Independent Dealer- A used vehicle dealer who is not associated with a manufacturer.

• Inventory Turn- A measure of a dealer’s operations that calculates how quickly they sell or “turn” their inventory.

•Lane — The passageways in front of the auctioneer where vehicles travel to the block to be put up for sale.

•Lights — (See Blue, Green, Yellow, Red) Color signals at an auction house that indicate the condition of a vehicle up for bid.

•PMR — Pipeline Market Report. A wholesale pricing guide maintained by Auction Edge based on independent auction sales.

•Post-Sale Inspection — An inspection service that ensures a purchased vehicle matches its announced condition. Auction personnel test drive the car and inspect its frame and mechanical condition to ensure quality and performance before sending it to the dealer's lot.

•Reconditioning (Recon) — The process of correcting mechanical and cosmetic defects to prepare a vehicle for resale. Auctions typically provide these services to consignors because their investments are more than fully recovered through the lanes.

•Red Light — Indicates a vehicle is offered "as is." During the auction, a red light is turned on during bidding.

•Remarketing — All services as well as the actual transfer of a vehicle from seller to buyer.

•Repossession — The process by which the lessor or financial institution obtains possession of a vehicle from a lessee. Repossession can be either voluntary or through legal measures taken upon default of the lease.

•Repping—The presence of the consignor’s representative on the block or online to represent a vehicle in the auction lane.

•Reserve Price — Also called “the low.”  In most cases, the minimum price a seller is willing to accept.

•Ringmen — Individuals positioned among auction attendees to spot bidders for the auctioneer and to assist prospective bidders with information.

•Run Numbers — (a) Numbers assigned to a vehicle or a consignor's group of vehicles when lane reservations are made; (b) Position in the lane during an auction.

•Salvage — A vehicle that is sold for the value of its salvageable parts.

•Salvage Bid — An offer to purchase a salvage vehicle. Frequently the minimum standing bid at an auction.

•Seller's Fee (Sale Fee) — The fee paid by the seller to the auction house after the vehicle is sold. The fee usually is based on the sale price of the vehicle.

•Simulcast Auction —A live online auction where dealers can bid in real time on vehicles in the lanes.

•Title — A legal document issued by the state showing the owner's name and the vehicle's mileage at the time of sale.

•"Title Absent" (or "Title Attached") Transactions — When the title is not available on auction day and must be produced and delivered to the auction house by the seller within a certain period of time.

•Total Loss — A severely damaged vehicle that must be sold for salvage. Also an insurance term for a vehicle which the insurer decides should not be repaired.

•Trade-in — A vehicle that is sold to either a new or used car dealer as part of the purchase of another.

•Vehicle Identification Number (VIN): A 17-digit combination of letters and numbers that identifies an individual vehicle. It is located on the driver’s side of the dashboard at the base where the windshield glass and dashboard meet. Each digit or letter in the VIN provides information about the vehicle.

•Wholesaler — A dealer who buys vehicles at auction—or from a dealer or another wholesaler—and resells them in a wholesale market rather than consumers.

•Yellow Light — A vehicle that is being offered with certain conditions that are announced prior to sale. Buyers cannot take these conditions to arbitration. A yellow light is illuminated while bidding is underway on such a vehicle.