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Auction Grades Understood

Writer's picture: Lindsay RouthanLindsay Routhan

Auction grades to those outside of the business can often be distorted on what is correct and what is not.

Explained below is how the system works starting from the highest grade to the lowest, but please read all of this as there are reasons why a car may have a lower grade when it is in perfect condition. Also these grades in 80% of cases relates to the external condition and not interiors. Scroll down to see how interiors are graded.


Auction Grade S:

Grade S is very simple to explain, it is a brand new car with no more than 20 or 30 delivery kms.


Auction Grade 6:

Grade 6 is a brand new vehicle that may have been on display somewhere but is more than 1 year old still having almost zero mileage on it.


Auction Grade 5:

Grade 5 is a used car that can be described as in brand new condition but has more than 1000 kms on it and is within a few years old.


Auction Grade 4.5:

Grade 4.5 is the highest grade that can be given to any vehicle that has done over 20,000kms and is over 5 years old. This does not necessarily represent it has any defects in fact its normally the opposite. A 4.5 grade is normally in perfect condition just a little older and higher kms than a new car.


Auction Grade 4:

Grade 4 is normally an older car that will have very minor paint defects such as scratches on the bumper corners etc but generally still a very good car.


Auction Grade 3.5:

Grade 3.5 is where the condition of vehicles normally has some defects. But please don’t think this is a serious issue as there are many reasons why a vehicle will be graded 3.5 and may in fact be something as simple as needing an Air Conditioning regas.

Normally this grade has some dents on the body and requires a visit to a paint and panel shop for cosmetic repairs.

A vehicle will also get knocked back a grade for simply having a panel replacement at some previous point.

This by no means indicates it has been in a crash, in Japan replacing a panel that has had some minor damage is cheaper than repairing one so don’t be put off by that.

A vehicle will also get knocked back a grade for simply having a high mileage on it for the age of it or even just the fact that it is an old car with nothing wrong with it.

Particularly classic cars it is seldom to find one with a higher grade than 3.5 purely due to its age.


Auction Grade 3:

Grade 3 is where things start to get a little questionable and requires further investigation.

Now there are exceptions in every rule but generally if it is going to be your daily driver or a more modern car you most likely don’t want an auction grade 3 car as it will be in need of various repairs that can also include mechanical and structural repairs so choose very carefully.

The only grade 3 cars I personally will looks at is the older classics as it is common for auctions to grade cars this way to avoid any potential claims against them.


Auction Grade 2:

Grade 2 in 99% of cases is the auction saying this vehicle is extremely rusty.

There is never a case that I would even inspect a grade 2 car and would advise anyone to stay well clear of these.


Auction Grade 1:

Although very seldom now you will see a grade 1 car it is to indicate it has been heavily modified and the auctions way of saying basically “Check it yourself”.

These modifications can be not only mechanical but structural as well and can also include parts of the grade 2 cars.


Auction Grade R:

The R in grade R cars simply means “Repaired”.

In its past it has been in some kind of collision and again the auction house is not responsible for any sub-standard repairs that may have been carried out on it.

For myself the only exception I will look at a R grade car is again on classics for the same reason mentioned above. The auctions do not want to be held responsible for these old cars so by grading it R there can be no claims made.

Also an old classic may have had a restoration at some point and had 3 or 4 panels replaced thus earning it an R grade by the auctions own set of rules.


Interior grading:

In more recent years the auction system had adopted a grading system for the interiors alone using letters rather than numbers.


A grade interior:

This is simply like brand new inside.


B grade interior:

This is still perfect inside but perhaps needs a minor clean.


C grade interior:

This indicates that the interior has some visible signs of wear and/or dirty or perhaps some minor damage.

Things like pet hair or a smokers vehicle can be given this grade.


D grade interior:

If any car you're looking at has this grade you should be asking why as normally this grade is used on old classic cars that are in need of some kind of internal restoration or perhaps a motorsport vehicle that has had its interior parts removed.

If this is going to be your daily driver or a more modern car for yourself then I suggest think again unless there is a very good reason why it’s been graded this way.


E grade interior:

It is seldom to see an E grade but is possible on older classics as needing a complete interior restoration or on a more modern vehicle if things like the dash pad are all cracked needing replacement.


So summing it all up when you view an auction sheet normally on the top right corner of the sheet you will see a number and a letter, that is your auction grade for external an internal condition.



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