arbitration policy
⭐ Very Disappointing Auction and Arbitration Policies
My experience with OPENLANE has been extremely disappointing. Their arbitration policies are frustrating and do not provide the protection buyers expect. You can purchase a vehicle believing you have some warranty or arbitration coverage, only to find out that your options are extremely limited.
The whole point of arbitration should be to protect buyers when there are legitimate issues with a vehicle. Unfortunately, the policies often make it feel like buyers have no real protection at all. You take the risk, spend your money, and when a problem comes up, getting a fair resolution can be extremely difficult.
In my opinion, OPENLANE needs to improve its arbitration process, make its policies clearer, and provide better protection for dealers who buy vehicles through their platform. An auction platform should offer a fair and transparent arbitration process, not leave buyers feeling like they have no options.
Based on my experience, I am very disappointed with their arbitration policies and the lack of meaningful support when problems arise. I would strongly encourage other dealers to read every detail of the arbitration terms before bidding.
My experience with OPENLANE has been extremely disappointing. Their arbitration policies are frustrating and do not provide the protection buyers expect. You can purchase a vehicle believing you have some warranty or arbitration coverage, only to find out that your options are extremely limited.
The whole point of arbitration should be to protect buyers when there are legitimate issues with a vehicle. Unfortunately, the policies often make it feel like buyers have no real protection at all. You take the risk, spend your money, and when a problem comes up, getting a fair resolution can be extremely difficult.
In my opinion, OPENLANE needs to improve its arbitration process, make its policies clearer, and provide better protection for dealers who buy vehicles through their platform. An auction platform should offer a fair and transparent arbitration process, not leave buyers feeling like they have no options.
Based on my experience, I am very disappointed with their arbitration policies and the lack of meaningful support when problems arise. I would strongly encourage other dealers to read every detail of the arbitration terms before bidding.
Show more
MQmasod qasomi
Zero stars!
I have had an extremely frustrating experience with Openlane, and after evaluating the platform from a dealer’s perspective, I have significant concerns about how the system operates compared with a traditional U.S. dealer auction.
1. The Auction Closing Process
Let’s start with the buying process. Auctions close at midnight, which creates an obvious problem for dealers operating on the East Coast. Why should a dealer have to stay awake until 1:00 a.m. Eastern time simply to participate in an auction?
The standard response is that dealers can use the “AutoBid” feature. However, that creates two significant problems.
First, most dealers are not intending to purchase every vehicle on which they place a bid. A dealer may be monitoring and bidding on 10 or 20 vehicles because they are looking for one or two that fit their inventory needs. AutoBid creates the risk that the dealer wakes up the next morning having purchased multiple vehicles simply because the system continued bidding on their behalf.
Second, the way Openlane handles AutoBid appears fundamentally different from a traditional auction. If I establish a maximum bid of $20,000, the other bidders may not see that amount, but Openlane can apparently communicate that amount to the selling dealer. Even more concerning, if the vehicle does not sell and is subsequently relisted, the system can apparently repost my maximum bid as the current/high bid and I am the “leader”.
I am not aware of a traditional dealer auction in the United States where a vehicle runs through the auction, fails to sell, is relisted the following week, and the auction automatically establishes the previous bidder’s maximum bid as the new high bid. That is not how I understand the competitive bidding process at a traditional auction.
2. The Platform Does Not Operate Like a Traditional Auction
One of the primary reasons I wanted to use Openlane was to replicate some of the efficiencies of a physical dealer auction without having to sit through 100 vehicles before reaching the two or three I am actually interested in purchasing. It would also allow me to bid on multiple vehicles simultaneously without physically running between lanes.
However, Openlane does not appear to function like a traditional U.S. dealer auction in several important respects.
Instead, the platform often feels more like a combination of CarMax, AutoTrader, and an online auction platform. Vehicles can apparently be relisted repeatedly until they eventually sell through Openlane or to a retail customer.
That creates a fundamentally different buying environment from a traditional wholesale auction, where vehicles actually run through a sale and are subject to established auction procedures, arbitration policies, and market-based bidding.
The “Buy It Now” pricing is another significant concern. In many cases, the asking prices appear to be 20–30% higher than what comparable vehicles are bringing at Mannheim auctions across the country. If the objective is to purchase wholesale inventory, pricing vehicles substantially above established wholesale market values does not make the platform particularly attractive to dealers.
3. Auction Times and Time-Zone Issues
Another major problem is the way auction closing times are presented.
Vehicles may be advertised as ending at 9:00 p.m., yet the actual closing time zone appears to in Portugal where they must have the bulk of their business I guess. If it’s a US based business why are we not using US time zones??
A U.S.-based dealer auction should clearly communicate the closing time in the dealer’s applicable U.S. time zone or, at minimum, provide an unmistakable indication of the actual closing time.
If Openlane expects dealers to meet strict payment deadlines, transportation deadlines, and other contractual obligations, the auction closing process should be equally precise.
4. The Double Standard
Open lane expects me to do follow their outlined rules but tends to change their side of the rules to fit their narrative, and when you call them out in it they get defensive and provide very poor responses!
5. Condition, Inspection, and Arbitration
Perhaps my biggest concern is the risk associated with vehicle condition.
Based on my experience and conversations with other dealers, it appears that vehicles purchased through Openlane need to be approached with the assumption that the buyer may ultimately be responsible for accepting the vehicle largely “as is.”
I know dealers who have attempted to resolve significant condition issues through the arbitration process and have had little success.
For example, a good friend purchased a one-ton diesel truck through the platform. The vehicle’s inspection report indicated that the transmission shifted properly. However, the inspector apparently only drove the vehicle a very limited distance around a parking area and verified first, second, and reverse.
After my friend received the truck, it would not exceed approximately 35 mph, even with the pedal on the floor. The problem ultimately resulted in approximately $8,000 in repairs. Openlane offered approximately $1,500 toward the repair.
That is a substantial difference between the cost of the repair and the resolution offered.
Under the traditional dealer-auction model, he would have never owned that vechile!
BUYER BEWARE!!! This is not a dealer auto auction!! I have purchased from auctions in Dallas, Houston, OKC, Tulsa, Springfield, Kansas City, St. Louis, and too many others to count…. Never have I seen and dealer auto auction operate like this!
1. The Auction Closing Process
Let’s start with the buying process. Auctions close at midnight, which creates an obvious problem for dealers operating on the East Coast. Why should a dealer have to stay awake until 1:00 a.m. Eastern time simply to participate in an auction?
The standard response is that dealers can use the “AutoBid” feature. However, that creates two significant problems.
First, most dealers are not intending to purchase every vehicle on which they place a bid. A dealer may be monitoring and bidding on 10 or 20 vehicles because they are looking for one or two that fit their inventory needs. AutoBid creates the risk that the dealer wakes up the next morning having purchased multiple vehicles simply because the system continued bidding on their behalf.
Second, the way Openlane handles AutoBid appears fundamentally different from a traditional auction. If I establish a maximum bid of $20,000, the other bidders may not see that amount, but Openlane can apparently communicate that amount to the selling dealer. Even more concerning, if the vehicle does not sell and is subsequently relisted, the system can apparently repost my maximum bid as the current/high bid and I am the “leader”.
I am not aware of a traditional dealer auction in the United States where a vehicle runs through the auction, fails to sell, is relisted the following week, and the auction automatically establishes the previous bidder’s maximum bid as the new high bid. That is not how I understand the competitive bidding process at a traditional auction.
2. The Platform Does Not Operate Like a Traditional Auction
One of the primary reasons I wanted to use Openlane was to replicate some of the efficiencies of a physical dealer auction without having to sit through 100 vehicles before reaching the two or three I am actually interested in purchasing. It would also allow me to bid on multiple vehicles simultaneously without physically running between lanes.
However, Openlane does not appear to function like a traditional U.S. dealer auction in several important respects.
Instead, the platform often feels more like a combination of CarMax, AutoTrader, and an online auction platform. Vehicles can apparently be relisted repeatedly until they eventually sell through Openlane or to a retail customer.
That creates a fundamentally different buying environment from a traditional wholesale auction, where vehicles actually run through a sale and are subject to established auction procedures, arbitration policies, and market-based bidding.
The “Buy It Now” pricing is another significant concern. In many cases, the asking prices appear to be 20–30% higher than what comparable vehicles are bringing at Mannheim auctions across the country. If the objective is to purchase wholesale inventory, pricing vehicles substantially above established wholesale market values does not make the platform particularly attractive to dealers.
3. Auction Times and Time-Zone Issues
Another major problem is the way auction closing times are presented.
Vehicles may be advertised as ending at 9:00 p.m., yet the actual closing time zone appears to in Portugal where they must have the bulk of their business I guess. If it’s a US based business why are we not using US time zones??
A U.S.-based dealer auction should clearly communicate the closing time in the dealer’s applicable U.S. time zone or, at minimum, provide an unmistakable indication of the actual closing time.
If Openlane expects dealers to meet strict payment deadlines, transportation deadlines, and other contractual obligations, the auction closing process should be equally precise.
4. The Double Standard
Open lane expects me to do follow their outlined rules but tends to change their side of the rules to fit their narrative, and when you call them out in it they get defensive and provide very poor responses!
5. Condition, Inspection, and Arbitration
Perhaps my biggest concern is the risk associated with vehicle condition.
Based on my experience and conversations with other dealers, it appears that vehicles purchased through Openlane need to be approached with the assumption that the buyer may ultimately be responsible for accepting the vehicle largely “as is.”
I know dealers who have attempted to resolve significant condition issues through the arbitration process and have had little success.
For example, a good friend purchased a one-ton diesel truck through the platform. The vehicle’s inspection report indicated that the transmission shifted properly. However, the inspector apparently only drove the vehicle a very limited distance around a parking area and verified first, second, and reverse.
After my friend received the truck, it would not exceed approximately 35 mph, even with the pedal on the floor. The problem ultimately resulted in approximately $8,000 in repairs. Openlane offered approximately $1,500 toward the repair.
That is a substantial difference between the cost of the repair and the resolution offered.
Under the traditional dealer-auction model, he would have never owned that vechile!
BUYER BEWARE!!! This is not a dealer auto auction!! I have purchased from auctions in Dallas, Houston, OKC, Tulsa, Springfield, Kansas City, St. Louis, and too many others to count…. Never have I seen and dealer auto auction operate like this!
Show more
MMicheal23858
Owner
I am a longtime dealer who has purchased more than 400 vehicles through OPENLANE, so my expectations are based on significant experience with their platform and arbitration process.
Unfortunately, my recent experience with the arbitration department was extremely disappointing. The biggest concern was not simply the outcome of the arbitration, but the lack of communication and accountability during the process. I was not given a reasonable opportunity to speak with a manager or supervisor to discuss my concerns or have the situation properly reviewed.
As a dealer who has spent considerable time and money doing business with OPENLANE, I expect a higher level of customer service, professionalism, and transparency. When an arbitration issue arises, dealers should have access to appropriate management when they believe their concerns have not been properly addressed.
I understand that not every arbitration decision will go in my favor, and I can accept a fair decision. However, I expect to be treated with respect and to have a reasonable escalation process available. Being unable to speak with a manager after purchasing more than 400 vehicles through the company is very disappointing.
I hope OPENLANE takes dealer concerns seriously and improves communication, transparency, and management accessibility within its arbitration department. Long-term customers deserve to feel that their concerns are heard and properly reviewed.
Unfortunately, my recent experience with the arbitration department was extremely disappointing. The biggest concern was not simply the outcome of the arbitration, but the lack of communication and accountability during the process. I was not given a reasonable opportunity to speak with a manager or supervisor to discuss my concerns or have the situation properly reviewed.
As a dealer who has spent considerable time and money doing business with OPENLANE, I expect a higher level of customer service, professionalism, and transparency. When an arbitration issue arises, dealers should have access to appropriate management when they believe their concerns have not been properly addressed.
I understand that not every arbitration decision will go in my favor, and I can accept a fair decision. However, I expect to be treated with respect and to have a reasonable escalation process available. Being unable to speak with a manager after purchasing more than 400 vehicles through the company is very disappointing.
I hope OPENLANE takes dealer concerns seriously and improves communication, transparency, and management accessibility within its arbitration department. Long-term customers deserve to feel that their concerns are heard and properly reviewed.
Show more
RRocky-max
Scammers!
This company will sell you piles of junk and when you arbitrate, you’ll be stuck with it. Run away!!
MMokoBella
DO NOT BUY CARS FROM THEM
I bought a Kia forte on Openlane that per their inspection had no issues. When the car arrived if was blowing smoke from the tail pipe. I took the car to a dealer as they requested. Kia found the cylinder walls were scored beyond repair and the car needed a new engine. $7700 repair. I forwarded all documents to Openlane. An arbitrator calls me and says they use an internal labor rate of $95 an hour (even thought they don’t do repairs) and he found a used engine at LKQ for $2100. So the best they will do is comp me 3 grand. I do not have a shop that will do the job for under 5 grand because no one does labor for $95 an hour. Now I have to lose money and have a car down for weeks because of their bad inspection. I took it a step further because the seller had bought the car from Manheim. Turns out they tried to arb it for the SAME ISSUE. So now not only is it just plain fraud but Openlane will still not take the car back.
Show more
Hhvntergvtherer
