To PSI or Not to PSI? That is the question.
The decision about whether to get a PSI from an auction is between you and your wallet. Here are some questions and answers I can share that may help clarify things while you make your decision.
A PSI is a “Post-Sale Inspection” and generally includes a 5-Minute inspection and a short test drive along with additional arbitration protections, such as an extended time frame to arbitrate. Generally filed under the “assurance” suite of products, the same idea may be called different things at different auctions. There are different levels of PSI, such as an LPI or Frame Inspection, but those are for another post. This will focus on your standard 7- or 14-day PSI.
Does the PSI ensure I will get a front-line ready car? No. Not at all. Never. What it does do is give you a better chance at avoiding cars with major issues, and getting a good resolution if you do.
I bought a green light car and it passed PSI, and now I get it to my lot and it’s toast! Is someone going to pay for this?! Yes, in fact someone will pay for it. If you are within time, and the issue wasn’t caused by negligence after taking possession, then either the auction or the seller will be on the hook. Keep in mind, I didn’t say “will void the sale immediately.” Even with a confirmed issue, the auction may insist on the resolution being a sale price adjusted for repairs or resale assistance or something else entirely, a voided sale is not always the only acceptable outcome.
I bought a car with a PSI, and it passed. Afterwards, I couldn’t pick it up until day 15 post sale. I then found it had a bad engine. Do I have a valid claim? No. Whether or not you were able to pick up a vehicle doesn’t change the time frame you have for arbitration. I recommend planning ahead for transport and a second inspection to ensure you don’t miss the time frame and put everyone in a bad spot.
Why does it seem random whether the auction pays out on a PSI arbitration or the seller pays out? Good question. It’s not actually entirely random. The auction reviews the circumstances of each case and determines whether 1. It’s within PSI time frame 2. The issue would have been observable by the tech during a PSI inspection (commonly a “no” for higher-gear transmission issues and intermittent issues, sellers are generally on the hook for those) 3. Whether the seller held back information 4. If the buyer had opportunity to take note of the issue prior to sale (did you read the announcements?) or was negligent after taking possession. There is more that is considered, and each case is reviewed on its own merit.
How do you know? I have been in the trenches, so to speak, for the last 11 years. Also, you can read about PSI policies on each auction website to better understand the specifics at your favorite spots. There are some variations in coverage between auction brands, and some auctions do things completely differently, so you should definitely read for yourself if this kind of protection is available at your auction.
A PSI seems like just another way for the auction to make money off of me. Yes, of course. Hopefully the product has some value to those who buy it. Could it be better? Yes. Does it do what it’s supposed to do? Mostly. This is why each buyer should review their situations, and why sellers should anticipate the PSI when selling greenlight cars.
