This article explains when a Seller Cancellation Fee applies and how it's calculated. It is based on the Bidbus Seller Terms & Platform Rules — refer there, in your Seller Dashboard, for the complete governing terms.
For transparency, this article also briefly covers what happens if a Dealer cancels a winning bid. That process is governed separately under the Bidbus Dealer Participation Terms & Platform Rules and isn't the focus of this article.
1. Seller Cancellation & Violations
When a Seller accepts an offer from a Dealer — either by a Dealer meeting the Minimum Selling Price or through acceptance of a Buy Now bid — the Seller enters into a binding agreement to complete the sale under the terms of the accepted offer.
A Seller Cancellation Fee applies only if, in Bidbus's reasonable discretion, the Seller violates the Agreement. This includes, but isn't limited to:
Refusing to sell after the vehicle is marked sold
Refusing to drop off the vehicle within three (3) business days (the "Standard Dropoff Timeframe")
Refusing to drop off the vehicle within the Standard Drop-Off Radius
Cancelling communication or "ghosting" the winning Dealer
The Dealer discovers material, undisclosed damage that the Seller reasonably should have known about and failed to document in the Dashboard
Delinquent DMV fees owed on the vehicle
Violation of NHTSA (National Highway Traffic Safety Administration) vehicle safety regulations, for example odometer fraud
If the Seller violates the Agreement by cancelling, withdrawing, or otherwise failing to complete the transaction, the Seller pays Bidbus a Seller Cancellation Fee. The fee is equivalent to the standard Seller's Fee (minimum $300) and is based on the final winning bid (sale price):
Vehicles sold under $30,000: flat $300.00 fee
Vehicles sold for $30,000 or more: 1% of the final sale price (for example, a $52,000 sale incurs a $520.00 fee)
The Seller Cancellation Fee compensates for the time, administrative effort, and opportunity costs incurred as a result of the Seller's violation.
2. Enforcement and Collection
Bidbus reserves the right to charge, deduct, or invoice the Seller Cancellation Fee through the payment method on file, or by other lawful means. Failure to remit payment within the specified timeframe may result in suspension or termination of the Seller's Bidbus account, or referral to a collections agency.
Dealer Penalty enforcement is governed separately under the Bidbus Dealer Participation Terms & Platform Rules, as part of Bidbus's agreements with its dealer network.
3. Mutual Obligation of Fairness
This Cancellation Policy is designed to promote mutual trust and accountability among all Bidbus participants. 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.
For Your Awareness: Dealer Cancellations
Dealers are similarly bound to honor their winning bids. If a Dealer fails to complete a transaction after winning an auction and doesn't provide a valid reason for withdrawal, the Dealer is liable for a Dealer Penalty and the Seller may be eligible for compensation up to a maximum of $300.00 for the failed transaction. Bidbus has sole discretion to determine whether compensation is warranted and the final amount.
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, or if the vehicle cannot be delivered as agreed. Valid reasons include, but aren't 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
Vehicle drop-off outside the three (3) business day industry standard, where the resulting change in book value affects the Dealer's purchase
Title or other documentation issues that prevent the transaction from being completed, including a leasing company's denial of a previously approved third-party lease buyout
Any other material defect or misrepresentation that reasonably impacts the vehicle's market value or safety
For the full legal terms, see the Bidbus Seller Terms & Platform Rules.