Canadian auctions adopt NAAA certification standards

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Come June 1, Canada’s auto auctions will officially implement a national uniform system of standards.

The adoption of the National Certification Standard (NCS), pioneered by the National Auto Auction Association, will make the program accessible to the association’s entire North American membership while benefiting the remarketing industry overall.

Proponents of the move insist it will ensure consistency and accuracy in the certification of wholesale used vehicles.

NAAA, which represents more than 335 member auctions and 100 associate members both domestic and international, launched the 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, French and Spanish on NAAA’s website. 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 NAAA chief Frank Hackett.

“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, senior V-P 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.”

GM Financial’s John Paonessa said the company would launch 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.

Implementation of the program is an industry wide process and will likely 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,” Hackett advised, adding that downloadable promotional materials are available online from NAAA to assist members with their participation.