1. Purpose & Master Agreements This Cancellation Policy (“Policy”) governs the rights and obligations of sellers and dealers who participate in transactions facilitated through the Bidbus platform (“Bidbus”). By accepting an offer on Bidbus, you acknowledge and agree to be bound by the terms set forth in this Policy. This policy serves as a targeted summary regarding cancellations and fees. For complete terms and conditions: Sellers must refer to the Bidbus Seller Terms & Platform Rules in their Seller Dashboard, and Dealers must refer to the Bidbus Dealer Participation Terms & Platform Rules in their Dealer Portal.
2. Seller Cancellation & Violations 2.1. Once a seller (“Seller”) accepts an offer from a dealer (“Dealer”), or the Reserve Price is met, the Seller enters into a binding agreement to complete the sale under the terms of the accepted offer.
2.2. A cancellation and subsequent penalty ONLY occur if the Seller violates the Bidbus Seller Terms & Platform Rules. 2.3. If the Seller violates the agreement by canceling, withdrawing, or otherwise failing to complete the transaction, the Seller shall be liable for a Cancellation Fee. This Cancellation Fee is equivalent to the standard Seller's Fee and is based on the final winning bid (sale price) of the vehicle:
Vehicles sold under $30,000: The Cancellation Fee is a flat $300.00.
Vehicles sold for $30,000 or more: The Cancellation Fee is 1% of the final sale price (e.g., a $52,000 sale incurs a $520.00 fee). 2.4. The Cancellation Fee is intended to compensate Bidbus and the Dealer for the time, administrative effort, and opportunity costs incurred as a result of the violation.
3. Dealer Cancellation & Seller Guarantee 3.1. Dealers are similarly bound to honor their winning bids. 3.2. If a Dealer fails to complete a transaction after winning an auction and does not provide a valid reason for withdrawal as defined in Section 4, the Dealer shall be liable for a penalty fee of five hundred dollars ($500 USD) (“Dealer Penalty”). 3.3. Seller Compensation: If Bidbus is unable to find an alternative buyer or resolve the dispute, and determines the Dealer’s rejection was invalid, the Seller may be eligible for compensation up to a maximum of $500.00 for the failed transaction.
4. Valid Reasons for Dealer Withdrawal 4.1. A Dealer may only withdraw from a winning bid if material, undisclosed issues are identified during inspection that substantially affect the vehicle’s condition, safety, or value. 4.2. Valid reasons for withdrawal include, but are not limited to:
Moderate or major accident damage not previously disclosed;
Significant mechanical or electrical malfunctions;
Severely worn, unsafe, or mismatched tires;
Structural, flood, or fire damage;
Any other material defect or misrepresentation that reasonably impacts the vehicle’s market value or safety.
5. Enforcement and Collection 5.1. Bidbus reserves the right to charge, deduct, or invoice the applicable fee (Cancellation Fee or Dealer Penalty) through the payment method provided by the responsible party or by other lawful means. 5.2. Failure to remit payment within the specified timeframe may result in suspension or termination of the responsible party’s Bidbus account and/or referral to a collections agency.
6. Mutual Obligation of Fairness 6.1. This Policy is designed to promote mutual trust and accountability among all Bidbus participants. 6.2. By using the Bidbus platform, both Sellers and Dealers agree to act in good faith and fulfill their respective commitments once an offer is accepted.
7. Summary
Seller Cancellation: A Cancellation Fee equivalent to the standard Seller's Fee ($300 for sales under $30k, or 1% for sales $30k+) applies ONLY if a Seller violates the agreement by canceling a valid sale or misrepresenting the vehicle.
Dealer Cancellation: A $500 penalty applies if a Dealer cancels without a valid reason. If this occurs, the Seller may be eligible for compensation up to a maximum of $500.