Arbitration Policy

Last Modified: April 2022

Acceptance of the Arbitration Policy. This Arbitration Policy (the “Policy”) is entered into by and between You (also referred to as a Buyer or Seller as hereafter defined) and Carmigo, Inc. (“Carmigo,” “we,” or “us”). This Policy, together with the Carmigo Terms of Service and the Carmigo Website Privacy Policy, govern your access to and use of Carmigo.io, including any content, functionality, and services offered on or through Carmigo.io (the “Website”), whether as a guest or a registered user. By using the Website, clicking to accept or agree to the Terms of Service when this option is made available to You, or clicking “Bid”, “Proxy Bid” or “Buy It Now”, You accept and agree to be bound and abide by this Policy. If You do not want to agree to this Policy, You must not access or use the Website.

Changes to the Policy. We may revise and update this Policy from time to time in our sole discretion. All changes are effective immediately when we post them. Your continued use of the Website following the posting of a revised Policy means that You accept and agree to the changes.

Purpose of the Policy. Carmigo seeks to create an arbitration process that is transparent and fair to individuals and commercial sellers selling their vehicles through the Website (a “Seller”) and automobile dealers purchasing vehicles through the Website (a “Buyer”). In the event a concern arises with regard to a vehicle’s condition, Buyer and Seller agree to resolve such concern through Carmigo’s arbitration process, and Carmigo agrees that it will strive to find a fair resolution to all legitimately brought concerns that are covered by this Policy. In the event of any conflict between this Policy and federal, state, and local laws, such laws shall supersede this Policy where applicable.

Carmigo’s Role. Carmigo provides services to facilitate the exchange of vehicles between a Seller and Buyer. Carmigo is not a party to the sale of any vehicle that occurs through the Website.

The Arbitration Process. If Buyer receives a vehicle that has an undisclosed issue that is covered for arbitration under this Policy,  Buyer may submit a request for arbitration by submitting a claim in the Buyer Dashboard or by emailing Carmigo at support@carmigo.io. Buyer is only eligible to have the issue reviewed by Carmigo if Buyer has paid for the vehicle and submitted a request for arbitration prior to the expiration of the arbitration window set forth below. Upon receipt of a request for arbitration by an eligible Buyer, Carmigo will investigate the claim and determine the appropriate resolution, if any.

Buyer will have three (3) days from the date Buyer receives physical possession of the vehicle to submit a request for arbitration (the “Standard Arbitration Window”). For anything cosmetic related, Buyer will have one (1) day from the date Buyer receives physical possession of the vehicle to submit a request for arbitration. Buyer may, at the time of purchase, choose to purchase extended arbitration options which would give Buyer an additional seven (7) or fourteen (14) days from the end of the Standard Arbitration Window, respectively, to submit a timely request for arbitration. Additional Arbitration days will not include anything cosmetically related.

In order to fully investigate the arbitration claim, Carmigo may require Buyer to provide evidence of the claim and assist in diagnosis of any undisclosed condition issues within a specified timeframe, in order to determine the best resolution. Upon Carmigo’s request, Buyer shall:

  • Provide photos or other evidence of the vehicle’s condition within two (2) days.
  • Take the vehicle to a third party diagnosing facility as designated or approved by Carmigo and provide evidence of such facility’s receipt of the vehicle.
  • Permit a Carmigo vehicle inspector or third party inspector to inspect the vehicle at Buyer’s place of business or other location as designated by Carmigo.
  • Provide other potential evidence as reasonably requested.

If Buyer fails to promptly provide the requested evidence, Carmigo will close the arbitration investigation and Buyer will not be permitted to reopen the investigation.

After completing the investigation, Carmigo will make a final decision on all arbitration matters that shall be binding upon Buyer and Seller. The final decision may include (i) payments or credits to Buyer to cover, at Carmigo’s determined wholesale rates, parts and labor to repair covered vehicle condition issues as set forth in this Policy, (ii) the cancellation of the sale, (iii) resolution without further action, or (iv) other resolutions in the discretion of Carmigo. Generally, Carmigo is likely to determine that payment for parts and labor expenses, at wholesale rates, associated with any arbitration claim is appropriate instead of a transaction being cancelled. In no event will Buyer be entitled to a remedy through arbitration for more than the price Buyer paid for the vehicle. Once an arbitration for a given vehicle has been completed and closed by Carmigo, no new concerns may be raised by Buyer for arbitration related to that vehicle.

In the event Carmigo, in its sole discretion, determines that cancellation of the sale is the appropriate resolution after the vehicle has been delivered to Buyer, the vehicle will be transported to another location by Carmigo. Risk of loss will remain with Buyer until the vehicle is removed from Buyer’s premises. Carmigo will not be required to pay Buyer any fees associated with Buyer’s or its third party’s storage or security of the vehicle until it is transported from Buyer’s premises. Buyer and Seller agree that, in the event the transaction is cancelled as the result of an arbitration claim, either may be required by Carmigo to transfer ownership to the next buyer either through the Website or otherwise, and Buyer and Seller agree to cooperate with such transfer and promptly provide and facilitate the processing of any title paperwork related thereto. In the event of a cancellation, Buyer will recoup the purchase price and any Buyer’s fee paid to Carmigo for the original purchase of the vehicle once Carmigo receives the required negotiable title paperwork from Buyer.

What Can Be Arbitrated. In order for Buyer to request arbitration and to be eligible for any remedy based on the vehicle condition, each of the following criteria must be met:

  • The defect or concerning condition was not disclosed in the vehicle announcements or otherwise listed on the Website.
  • A single mechanical defect with a repair cost in excess of $500. The cost of the repair is determined by Carmigo based on wholesale dealer cost, which means used, remanufactured, and/or aftermarket parts as well as a wholesale labor rate of $85 for gas vehicles and $100 for non-gas vehicles. This minimum does not apply for cosmetic damage that was not disclosed to Buyer.
  • The defect is not included in the list of items in this Policy that are not eligible for arbitration.

What Cannot Be Arbitrated. The vehicle should not be brought for arbitration and will not be eligible for any remedy related to any of the following:

  • If a disclosure is made about any component or part of a vehicle, such component or part is not able to be arbitrated
  • Vehicle is eligible for manufacturer warranty
  • Any modified vehicles or aftermarket add ons if announced – (Include, but not limited to Lift kits, trailer hitches, towing package,electronics, engine, transmission)
  • Vehicles 2011 or older
  • Anything less than $500 total cost to repair which includes labor and eligible parts
  • The vehicle makes noises or demonstrates conditions that are inherent or typical to a particular model or manufacturer, unless deemed “excessive” by the diagnosing dealership on non-warranty items. OEM dealer warranty guidelines will be used to determine whether the condition is excessive.
  • The issue with the vehicle is related to wearable items, regardless of repair cost. For purposes of this Policy, wearable items would include, but are not limited to: tires, wipers, brake pads, shoes, rotors, belts, lines and hoses, seals and gaskets, lubricants/fluids, spark plugs and wires, ignition coils, timing belts, bulbs, filters, shocks and struts, suspension, exhaust and standard transmission clutches.
  • Vehicles may not be arbitrated solely on Electronic Vehicle History Data (EVHD). Examples of EDVH include CARFAX, AutoCheck, NMVTIS, etc. Carmigo only verifies CARFAX reporting. However, Carmigo may investigate EVHD based on information found in CARFAX for information that may impact arbitration.
  • Vehicles are not eligible after they have been driven more than  75 miles or 3 days after delivery.
  • Vehicle accessory electrical defects on vehicles four (4) model years old or older.
  • Cannot arbitrate leaks of any kind on vehicles with 100,000 miles or more. 
  • Damage of any kind that occurred after the vehicle is delivered to the buyer.
  • Secondary electronics (e.g. lane departure systems, radar cruise control, cross traffic detection, parking sensors, cameras, etc.)

Seller Responsibilities.

  • Seller is bound by representations and warranties found in the Carmigo Terms of Service.
  • Disclosures are required for any matters that are required to be disclosed under local, state or federal statutes or regulations. Such disclosures must be made by Seller to Carmigo’s vehicle condition inspector to be included in the vehicle announcements.
  • Even if the vehicle is covered by a manufacturer’s warranty, Seller is still required to disclose any known defects.
  • Seller is required to disclose and allow Carmigo to disclose the complete and accurate condition of the vehicle and title. In the event Seller has not disclosed the complete and accurate condition of the vehicle or title, inaccurately represented the features or condition of the vehicle, or otherwise tampered or interfered with full disclosure of the vehicle condition or title, there is damage or theft of the vehicle or the vehicle is tampered with before or after the vehicle is inspected by Carmigo, or Seller otherwise acted with gross negligence or willful misconduct resulting in incomplete or inaccurate disclosure, Seller will be responsible for all costs associated therewith, including arbitration costs, relisting costs, and all costs, liabilities, and losses sustained by Carmigo, Buyer, and any affected retail customer. Further, if the transaction is cancelled for any of the foregoing reasons, Seller (i) shall promptly return the proceeds from the original sale to Carmigo, (ii) shall be responsible, at Seller’s cost, to remove the vehicle from Buyer’s premises or the applicable storage facility within ten (10) calendar days after cancellation of the transaction, and (iii) will be required to refund transportation expenses incurred by Buyer for the vehicle.
  • Without limiting the foregoing, Seller must disclose the following information. Failure to disclose the following may result in an arbitration related to these issues and reparations being made by Seller to Carmigo, possible cancellation of the transaction, and possible other liabilities to Seller;
  • Title discrepancies including, but not limited to: not actual miles, salvage, theft recovery, stolen vehicle, flood damage, gray market, replica, Lemon Law, manufacturer and/or dealership buy backs and trade assist. No vehicles are allowed to be sold through the Website related to which there is any title washing that would cause a title discrepancy to be undisclosed. Seller will be solely and fully liable for any damages associated with title washing.
  • Permanent structural damage, any structural alterations, structural repairs or replacements (certified or non- certified).
  • Improper and/or substandard prior repairs (not meeting OEM repair guidelines).
  • After-market accessories installed to or removed from the structure.
  • Towing packages installed (or removed) where new holes are drilled, manufacturer’s holes are enlarged, or if the towing package is welded or brazed to the structure.
  • Multiple access holes (regardless of size) or singular access holes greater than 5/8″. Access holes between 1/4″ and 5/8″ are subject to disclosure based upon location and condition of structural components.
  • Corrosion of structural components that result in a perforation in the frame.
  • Structural tear damage (i.e. transport tie down) if more than 1″ in length (measured from tear start/stop points).
  • Any defects or damage that are “visible” or “cosmetic” in nature.
  • Any vehicles having a reassigned VIN plate by the State in place of the original VIN plate.
  • Seller must disclose accurate odometer reading, non-functioning or defective odometer, and TMU.
  • Mechanical defects in excess of $500 per item.
  • Vehicle accessory electrical defects in excess of $500 per item on vehicles four (4) model years old or less.
  • Vehicles not equipped with A/C.
  • Paintwork (bumpers and brush touches not included).
  • Voided factory warranties.
  • Salvage vehicle, (including current title or history reported by CARFAX only), previous taxi, livery and emergency vehicles.
  • Flood Damage current or history (including documented by DMV or insurance company).
  • Missing Catalytic Converters.
  • Inaccurate model or trim badging, decals or identification.
  • Inoperable, missing, or defective airbags.
  • Any matters relating to the safety or integrity of the vehicle.

Buyer Responsibilities.

  • Buyer will inspect the vehicle immediately upon the vehicle’s arrival at Buyer’s premises. Buyer must verify the representations made on the vehicle announcements and promptly notify Carmigo of any discrepancies within the time frame as stated in this Policy. Buyer will verify the odometer reading upon arrival at Buyer’s location with the understanding that the odometer will increase during transportation of the vehicle from Seller to Buyer. Buyer may not submit for arbitration any claim related to an inoperable odometer if the mileage on the odometer has increased by 300 miles or more over the total miles indicated on the Website at the time of purchase plus the number of miles the vehicle traveled during transportation from Seller to Buyer.
  • Prior to making an offer to buy the vehicle through Carmigo, Buyer is responsible for reviewing all vehicle announcements, condition reports, pictures, and disclosures made available by Seller and Carmigo.
  • If Buyer makes any changes to the vehicle pending completion of arbitration, or before receiving title to the vehicle, Buyer shall be liable for any and all work done to the vehicle and any result thereof. Buyer shall not sell the vehicle before it receives title to the vehicle. Neither Seller nor Carmigo shall be liable for any vehicle sale or repairs made by Buyer before the title is received by Buyer. Additionally, Buyer will not be eligible for any remedy through arbitration for a vehicle that has been sold by Buyer after purchase (either wholesale or retail, and whether valid or voided) and before an arbitration claim is resolved.
  • Buyer is financially responsible and assumes all risk of damage and loss on the vehicle beginning at the time the vehicle is loaded on to the transport and removed from Seller’s premises (i.e., FOB shipping point).
  • Buyer will not have any repairs performed prior to Carmigo validating the arbitration claim. Costs for any repairs performed prior to validation of the arbitration claim will not be covered by arbitration.

Buyer Expectations.

  • Carmigo vehicle condition inspectors drive the vehicle small distances, but the vehicle is not tested at road speeds. Carmigo provides an on-site visual inspection of the vehicle, including exterior, interior, undercarriage and frame (without lifting the vehicle).
  • Additionally, a mechanical inspection includes checking the engine oil and coolant, starting and running the engine, and driving the vehicle to test the functionality of the transmission by getting the transmission into first gear and reverse.
  • Although Carmigo may disclose the same issue on different vehicles in different ways, if an issue is disclosed in any manner, it will not be eligible for any reparations through arbitration.
  • As a licensed automobile dealer, Buyer can expect that the vehicles it buys on Carmigo may have some of the imperfections listed below and may need any or all of the following services performed to get them into retail-ready condition. Although we may not disclose all of these items in the vehicle announcements, it should be considered normal and reasonable for any wholesale auction purchase, and therefore, these issues are not eligible for arbitration claims.
  • Interior and exterior cleaning and detailing to remove dirt, dust, grime, stains, smells, pet hair, gum and food residue.
  • Wet-sanding and buffing to remove surface level scratches and blemishes on the exterior body and paint.
  • Seepage that is not considered an active dripping leak.
  • Reconditioning or replacement of fogged or hazed headlights, fog lights, or tail lamps.
  • Non-functioning proximity sensors and lane detection sensors.
  • Repair of any and all aftermarket accessories.
  • Removal of decals, bumper stickers, vehicle wraps, and window tint, and any subsequent paint damage that could occur from this process.
  • Power seat functions including lumbar, heated & ventilated, memory, power tilt/telescoping steering wheel and steering wheel controls, power mirrors including defrost, and extending functions.
  • Keys that are a combination key/fob,  which may need a battery or dealer programming. Only one key that starts and unlocks the vehicle manually may be provided. Any duplicates will need to be made by Buyer.
  • Issues that can be remedied by utilizing existing manufacturer warranty need to be resolved through that process.
  • Wear and tear on headlights, window glass, and paint including minor scratches, moisture behind the headlight lens, and paint chips.