Grading
The NAMA grading scheme delivers key benefits to all the parties involved in the wholesale transaction of a used vehicle. It is designed to facilitate the buying and selling process of a used vehicle in a condition that is better understood by both parties.
A shared language for vehicle condition
The NAMA grading scheme delivers key benefits to all parties involved in the wholesale transaction of a used vehicle. It is designed to facilitate the buying and selling process in a condition that is better understood by both parties.
With a better understanding of a vehicle’s condition, it is possible to more accurately anticipate a selling price that is consistent with the typically observed prices for similar vehicles in the same trading period, subject to similar market conditions.
“Over 90% of vehicles sold at auction are currently graded — in excess of 10 million vehicles have been given a grade since the scheme launched.”
Five condition grades
Based on the external condition of a vehicle, assessed on a points system by type and severity of damage.
Trained inspectors
Grades are assessed by inspectors at each auction, specifically trained and working to a strict standard.
Voluntary, widely adopted
The scheme is completely voluntary but has a wide take-up within the auction sector.
Consistent across centres
Provides a consistent, transparent grading of vehicles across different auction centres nationwide.
Vehicle Grading For Cars
The scheme consists of 5 grades, termed 1 to 5. There is also an unclassified grade for vehicles that are badly accident damaged or require high levels of repair. NAMA members may choose to give certain cars an unclassified grade probably if they are very high mileage or old.
Grade 1
- Vehicle panels may have minor defects including dents up to 30mm, scratches up to 25mm
- Chips up to 10mm on glass
- Bumpers may have areas of scratches up to 100mm
- Wheels can be affected with scratches or corrosion
- Interior may have minor scuffing due to wear & tear and replacement of minor trim items may also be required
Grade 2
The vehicle may have numerous defects as in Grade 1 plus 1 of the following:
- Paint defects larger than 25mm on a panel or 100 mm on a bumper
- Dent larger than 30mm
- Defect to glass larger than 10mm
- Significant trim / part could also be required
Grade 3
The vehicle may have defects as in Grade 1 & 2 plus it could also include or have a combination of:
- Paint defects larger than 25mm on a panel or 100 mm on a bumper
- Up to 3 panels / bumpers affected with dents larger than 30mm
- Significant trims or parts could also be required
Grade 4
The vehicle may have defects as in grade 1, 2 & 3 it could also include or have a combination of:
- A panel with significant damage i.e. over 1/3 or a significant crack to a bumper
- Up to 10 panels with paint defects larger than 25mm or 100mm on a bumper
- Up to 7 panels / bumpers affected with dents larger than 30mm
- Multiple trims or parts could also be required
Grade 5
The vehicle may have defects as in grade 1, 2 ,3 & 4 it could also include:
- More than 2 panels / bumpers with significant cracks or damage i.e. over 1/3 of the panel
- 8 or more panels / bumpers affected with dents larger than 30mm
- 11 panels or more with paint defects larger than 25 mm or 100mm on a bumper
- Up to 1 structural panel* with significant damage i.e. over 30% of the panel (*roof & rear quarters)
- Significant tears, holes or cuts in convertible roof
Grade U
Vehicles in this grade could fall into the following categories
- Recorded items that exceed the criteria of Grade 5
- Substantial accident damage – visible substantial accident damage
- Major parts missing – multiple significant parts missing from either the interior or exterior
- Multiple unrecorded items – vehicles which are uneconomical to appraise
Vehicle Grading For Light Commercials
The scheme has 5 grades which are based on the cosmetic condition of a vehicle. The grades are determined by algorithms that calculate the grade by analysing the type and severity of damage. At each auction location vehicles are assessed by inspectors who have been specifically trained to inspect vehicles and work to the NAMA standard.
Grade 1
- Vehicle panels may have minor defects including dents up to one third of a panel or scratches on two panels
- May require a replacement windscreen
- Bumpers may have scratches
- Wheels can be affected with scratches or corrosion
- Interior & load area may have minor scuffing due to wear & tear and replacement of minor trim items may also be required
Grade 2
The vehicle may have numerous defects as in Grade 1 plus the following:
- 5 Paint defects on panels or bumpers or require a replacement bumper
- 3 Dents up to a third of a panel each
- Interior & load area may require replacement of major trim or have dents over that of general wear & tear
Grade 3
The vehicle may have defects as in Grade 1 & 2 plus it could also include or have a combination of:
- An additional 4 panels with paint defects
- An additional 3 panels with dents up to a third of a panel
- One non structural panel with damage greater than a third of its surface area
- Interior & load area may require multiple items of trim or parts replacing and have dents over that of general wear & tear
Grade 4
The vehicle may have defects as in grade 1, 2 & 3 it could also include or have a combination of:
- An additional non-structural panel with damage greater than a third of its surface area
- An additional 8 panels with paint defects or scratches
- An additional 6 panels affected with dents up to a third of panel
- May have a structural panel requiring replacement
- Interior & load area may require significant items of trim or parts replacing and have dents significantly over that of general wear & tear
Grade 5
The vehicle may have defects as in grade 1, 2 ,3 & 4 it could also include:
- Multiple panels with significant damage greater than a third of its surface area
- All panels affected with dents
- All panels or more with paint defects
- Interior & load area may require major and significant items of trim or parts replacing and have major and significant dents over that of general wear & tear
Grade U
Vehicles in this grade could fall into the following categories
- Recorded items that exceed the criteria of Grade 5
- Substantial accident damage– visible substantial accident damage
- Major parts missing – multiple significant parts missing from either the interior or exterior
- Multiple unrecorded items – vehicles which are uneconomical to appraise
Benefits of Grading
The aim of the NAMA grading scheme is to provide structure, systems and training that removes the subjectivity that may otherwise exist.
- A defined condition promotes the best possible price and encourages buyers to bid with confidence.
- Vehicles of specific grades attract certain buyers, helping sellers reach the best audience.
- Reserve prices can be assessed more critically, reducing vehicles exceeding or falling short without apparent reason.
- Condition values permit a more accurate comparison against guide prices.
- Consistent, transparent grading across different auction centres.
- Consistent grading across auction centres lets buyers target vehicles of interest, saving time.
- For individual sales, buyers can quickly identify vehicles that are of interest.
- More confidence to buy online, knowing they're purchasing a vehicle of known condition.
- Grading is supported by a detailed inspection carried out by a trained inspector in appropriate conditions.
- Greater certainty around condition means transactions are conducted more efficiently, reducing disagreements.
- Provides a role definition and competency framework for recruiting and developing vehicle inspectors.
- Provides a ready-made training resource for the training of vehicle inspectors.
Setting the standards of service & performance
To support the grading scheme, NAMA has developed guidelines covering the inspection environment, appraiser training, regular audits and dispute resolution.
Inspection Environment
Vehicles should be washed before inspection and appraised in a well-lit, dry environment — ideally under cover.
Trained Inspections
Inspections are carried out by trained appraisers, proficient in recording damage and repairs objectively.
Appraiser Training
Appraisers are trained to the NAMA standard and re-tested every six months, earning a certificate of competence.
Regular Audits
Inspections are audited using a minimum 2.5% sample, reviewed at least twice a year, internally or by a third party.
Approved Software
Inspection software is available from providers such as Kingfisher and Techinspect, or bespoke systems meeting NAMA standards.
Arbitration
In case of a dispute, NAMA’s National Conciliation Service is available to undertake arbitration and conciliation.