Carlay Arbitration Policy

Last Modified: August 2026

This Arbitration Policy is part of the Carlay Terms of Service and applies to everyone who uses Carlay.today or the Carlay dealer portal ("you"). Part 1 sets out how a Buyer may dispute a purchased vehicle whose condition, title, or mileage materially differs from its listing. Part 2 sets out how disputes between you and Carlay Inc. itself are resolved. Capitalized terms have the meanings given in the Terms of Service.

Part 1 — Vehicle Condition Arbitration

1.1 Purpose; inspection comes first

Carlay sales are AS-IS, WHERE-IS, and every purchase is contingent on the Buyer's inspection at the dropoff or pickup appointment. The appointment is the place to catch problems: anything you identified — or reasonably could have identified — by inspecting and test-driving the vehicle at the appointment must be raised then, before the sale is completed, and is not eligible for arbitration afterward.

Vehicle Condition Arbitration exists for the narrow set of problems an appointment inspection cannot reasonably reveal: hidden structural damage, title brands, odometer fraud, and latent mechanical defects. Carlay administers this process as a neutral platform. Carlay is not a party to the vehicle sale contract; arbitration outcomes bind the parties as a condition of using the Platform.

1.2 Eligibility

A claim is eligible only if all of the following hold:

Filed in time. Condition claims: within two (2) business days of taking possession. Title, brand, lien, and odometer claims: within ten (10) business days of taking possession, or two (2) business days of receiving the title, whichever is later.
Within the mileage allowance. The vehicle has been driven no more than 250 miles since possession, plus any miles driven under drive-away transport service arranged through Carlay (the "allowed mileage for arbitration" referenced in the Terms of Service transport section).
Vehicle preserved. The vehicle has not been retailed, wholesaled, titled or registered to a new owner, dismantled, materially altered, or repaired (except emergency repairs necessary to prevent further damage, with prior notice to Carlay).
Material. The claimed defect's documented repair cost is at least $500, or the claim concerns title status, brand, lien, or odometer accuracy (no dollar floor).

1.3 What is arbitratable

Eligible claims:

Undisclosed frame or structural damage
Undisclosed fire, flood, or water damage
Undisclosed title brand or history: salvage, rebuilt, lemon/manufacturer buyback, or a reported brand in a national title database (e.g., NMVTIS)
Odometer discrepancy: reading rolled back or a documented discrepancy exceeding the listed mileage by more than 500 miles
An undisclosed lien the Seller cannot satisfy
A latent major mechanical defect that existed at sale, was not stated in the condition report, and was not reasonably discoverable at the appointment inspection

Not arbitratable:

Anything disclosed in the listing's condition report or visible in listing photos
Anything identified, or reasonably discoverable, at the appointment inspection
Normal wear and tear consistent with age and mileage; cosmetic items; aftermarket parts
Repairs below the $500 threshold; market or price changes; buyer's remorse
Vehicles driven beyond the mileage allowance or not preserved per Section 1.2

1.4 How to file

Email support@carlay.today with the subject line "Arbitration — [VIN]" within the claim window, including: the VIN and listing reference, a description of the defect, photos or video, a written diagnosis or repair estimate from an independent shop, and — for title, brand, or odometer claims — the supporting title document or a vehicle history/NMVTIS report you obtained. Carlay will acknowledge within one (1) business day.

1.5 Process

Carlay reviews the claim for eligibility (Sections 1.2–1.3) and may request more evidence, an independent third-party inspection (cost initially split, reallocated to the losing party), or access to the vehicle. Stop driving the vehicle beyond the allowance while a claim is open.
Carlay presents the claim to the Seller, who has three (3) business days to respond with their own evidence.
Carlay issues a written determination, targeting ten (10) business days from filing.
The determination is final as to Platform remedies (Section 1.6) and Platform standing. It does not adjudicate the parties' underlying legal rights, which remain between Buyer and Seller under the Terms of Service.

1.6 Remedies

If a claim is upheld, Carlay will facilitate one of the following:

A price adjustment agreed between Buyer and Seller, or
Cancellation and unwind: the Buyer returns the vehicle to the Seller (return transport at the Seller's cost for an upheld claim) and the Seller refunds the purchase price.

If a claim is denied, the sale stands and any inspection costs advanced by Carlay may be charged to the Buyer.

1.7 Abuse of the process

Repeated meritless claims, misrepresenting a vehicle's post-sale condition or mileage, or using arbitration to renegotiate a fairly described purchase are grounds for claim denial, penalties, suspension, or termination.

Part 2 — Binding Arbitration of Disputes with Carlay Inc.

2.1 Scope

Except as provided below, any dispute, claim, or controversy between you and Carlay Inc. arising out of or relating to the Terms of Service, the Platform, or this Policy will be resolved by final and binding arbitration, not in court. This Part does not cover: (a) disputes between a Buyer and a Seller about a vehicle sale (see Part 1 and the Terms of Service); (b) claims that qualify for small-claims court, which either party may bring there; (c) either party's right to seek injunctive relief for intellectual-property infringement or misuse of Platform data.

2.2 Talk to us first

Before filing arbitration, send a written description of the dispute to support@carlay.today (subject "Legal dispute notice"). The parties will attempt in good faith to resolve it for thirty (30) days; arbitration may be filed only after that period.

2.3 Procedure

Arbitration is administered by the American Arbitration Association (AAA) before a single arbitrator — under its Consumer Arbitration Rules for individual Sellers, and its Commercial Arbitration Rules for dealers and commercial parties.
Governing law: the internal laws of the State of Delaware, consistent with the Terms of Service; the Federal Arbitration Act governs the interpretation and enforcement of this Part.
Hearing location: for individual Sellers, the county where the Seller lives or by videoconference, at the Seller's choice; for commercial parties, Wilmington, Delaware or by videoconference.
The arbitrator's award may be entered in any court of competent jurisdiction.

2.4 Fees

Each party bears the fees the applicable AAA rules assign it. For individual Sellers, Carlay will pay all AAA filing, administration, and arbitrator fees beyond the amount of the then-current AAA consumer filing fee.

2.5 Class action and jury waiver

BOTH PARTIES WAIVE THE RIGHT TO A JURY TRIAL AND AGREE THAT CLAIMS MAY BE BROUGHT ONLY IN AN INDIVIDUAL CAPACITY — NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS, CONSOLIDATED, OR REPRESENTATIVE PROCEEDING — AND THE ARBITRATOR MAY NOT CONSOLIDATE CLAIMS OR PRESIDE OVER ANY REPRESENTATIVE PROCEEDING. IF THIS WAIVER IS FOUND UNENFORCEABLE FOR A GIVEN CLAIM, THAT CLAIM (AND ONLY THAT CLAIM) PROCEEDS IN COURT.

2.6 Opt-out

You may reject this Part 2 without penalty by emailing support@carlay.today (subject "Arbitration opt-out") within thirty (30) days of first accepting the Terms of Service, stating your name, account email, and dealership (if any). Opting out of Part 2 does not affect Part 1, which is a Platform process, not a waiver of court rights.

2.7 Severability; survival

If any provision of this Part is unenforceable, the remainder stays in effect (except as stated in Section 2.5). This Policy survives termination of your account. If this Policy conflicts with the Terms of Service on dispute resolution, this Policy governs.