By Dane Hulse | Auto Auction Review
Let me see if I’ve got this straight about arbitration.
Online auctions invite dealers to buy nationwide. Expand your buying radius and access more inventory. Buy with confidence with our platform that streamlines the process across multiple regions.
But effective June 15, 2026, ADESA discontinued extended arbitration protection for certain Carvana wholesale purchases using its transportation program.
Under ADESA Clear’s policy, buyers generally have 10 calendar days from the sale date to file an arbitration claim. Not from delivery. From the sale.
Here’s where it gets interesting.
Auto Auction Review is currently reviewing a dealer complaint involving a vehicle purchased through ADESA Clear. The dealer arranged shipping through Carvana’s transportation network, not an independent carrier.
The vehicle reportedly arrived with a significant mechanical problem. When the dealer attempted arbitration, ADESA denied the claim because the deadline had expired.
Let’s be clear. These aren’t third-party dealer consignments. We’re talking about Carvana’s own wholesale inventory, sold through ADESA, where buyers at Carvana inspection centers cannot obtain a PSI. Add Carvana’s transportation network and an arbitration clock that starts on sale day, and tell me exactly when the buyer is supposed to inspect the vehicle.
Think about that. The buyer used Carvana’s own transportation network—a service affiliated with the company selling the vehicle—yet the arbitration clock continued running while the vehicle was in transit.
Now, we’re still reviewing the facts and aren’t prejudging the outcome. We’ve received ADESA’s response and are prepared to escalate the matter if the dealer wishes.
But somebody explain this to me.
Why buy a vehicle online or out of state, use the seller’s own transportation network, and risk losing your arbitration rights because of transportation delays beyond your control?
I bought and sold wholesale vehicles for decades. I understand AS-IS, arbitration deadlines, and buyer responsibility. But I also understand something pretty basic.
You can’t inspect a vehicle you don’t have.
And when the transportation company is affiliated with the seller, why should the buyer bear the consequences of a delivery delay?
How does that make sense?
If auctions want dealers buying nationwide, their arbitration policies ought to make nationwide buying practical.
AAR welcomes ADESA’s explanation.
Because buy with confidence shouldn’t mean hope your car gets there in time.