May 24th, 2016
Canadian Auctions Adopt the National Auto Auction Association’s (NAAA) National Certification Standards
The move expands the NAAA’s uniform system for certifying used vehicle quality to the broader North American remarketing community.
Frederick, MD. — Effective June 1, 2016, Canada’s auto auctions will officially implement a national uniform system of standards to ensure consistency and accuracy in the certification of wholesale used vehicles. Adoption of the National Certification Standard (NCS), pioneered by the NAAA, will make the program accessible to the association’s entire North American membership while benefiting the remarketing industry overall.
NAAA, which represents more than 335 member auctions and 100 associate members both domestic and international, launched the groundbreaking program in 2011. After conducting extensive research the primary goal is to establish a universal, yet streamlined set of consistent certification standards that embodied an industry consensus. In addition, it has been endorsed by the International Automotive Remarketers Alliance (IARA).
The program offers three quality levels — Platinum, Gold and Silver — to manage the requirements of a broad range of vehicle types. A checklist of 48 basic criteria provides a clear system that addresses vehicle selection, with well-defined requirements for inspection, reconditioning, and marketing.
NCS guidelines are available in English and French (as well as Spanish) on NAAA’s website – naaa.com. The website will also provide metric conversion of measurements and all changes required to conform to Canadian Federal and Provincial laws and regulations.
“Since its initial implementation in the U.S. over five years ago, NCS has proven effective with achieved its goals of building, promoting a greater understanding including trust and confidence among auctions, buyers and sellers” said Frank Hackett, Chief Executive Officer NAAA.
“Auctions here have seen that NAAA Certified means better business practices that translates to better business success, and we’re glad that our Canadian members have decided to employ this easy-to-use tool that, while comprehensive in its scope, requires only a minimal investment of time for both training and application by auction staff,” Hackett said.
Dan Heinrich the Sr. Vice President of Remarketing at GM Financial agrees that NCS delivers more than just a simple ratings system.
“We use the Gold and Silver standards in the U.S. for our vehicles because we’ve found that reconditioning to those levels brings more value as a consignor for at least two reasons,” Heinrich noted. “First, it’s the extra time and effort put into the work to meet those standards, and second certification by the program instills confidence in our buyers.”
His colleague at GM Financial, John Paonessa, Vice President of Canadian Remarketing, believes that NCS can do the same for the Canadian remarketing community.
“This system creates a common method of comparison and transparency in transactions — whether in-lane or online, at any auction, anywhere — which builds trust by removing doubt,” he said. “And that promotes peace of mind and a higher degree of comfort among auctions, buyers and sellers for the benefit of all. We look forward to launching the program at GM Financial’s June 14 elite sale at Manheim Toronto.”
As Canada’s largest privately owned fleet management and leasing company, Jim Pattison Lease’s Gerry Corcoran, National Director Commercial Remarketing Sales said they are excited and eager to join the program.
“From our beginning in 1961, we’ve used good common sense every day in resolving subjective evaluations of damages and defects in everything from writing condition reports to arbitration decisions, but having a uniform set of standards will be helpful to our auction staff and valuable to our customers,” Hackett said. “Adopting the program guarantees that everyone is on the same page and NCS certification gives us that seal of a quality vehicle recognized across the industry.”
Hackett noted implementation of the program is an industry wide process that will require a period of time to roll out. “We encourage Canada’s auctions to adopt NCS as soon as possible and inform their national accounts that they’re on board with the program,” he advised, adding that downloadable promotional materials are available online from NAAA to assist members with their participation.