What you need to know about NAMA grading for used LCVs

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LCVs at Manheim Auction Services are now NAMA-graded. Matthew Davock, Director of Commercial Vehicles at Cox Automotive, explains what this means.

NAMA grading now applied to all used LCVs sold at Manheim

Consistent condition reports create trust and confidence throughout the used LCV selling and buying process

New grading criteria reflect LCV’s unique usage and wear characteristics

On 1st July 2024, Manheim became the first auction business in the UK to sell a NAMA-graded LCV. This milestone moment followed many months of hard work by a team of experts from across the wholesale used LCV sector, led by the National Association of Motor Auctions – or NAMA as it’s best known.

Naturally, Manheim Auction Services opted to lead from the front on this important initiative, partnering with NAMA to develop the grading criteria and all the associated operational tasks, from training to its rollout.

The project team’s mission was to establish a set of grading principles for used LCVs that are as easily applied and understood as the long-established used car grading scheme. Until now, two LCVs that appear the same on paper could be in a very different condition, and reporting this has been inconsistent.

Customers have been asking for this from the sector. They know a consistent and transparent method of evaluating a vehicle’s condition helps both buyers and sellers. When both parties better understand a vehicle's condition, it promotes trust and confidence.

Consistency across the wholesale market also makes it 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.

The new LCV condition grades explained

The LCV grading follows the same 1-5 and U (‘unclassified’) format as the car grading scheme, making it instantly familiar to buyers and sellers. But crucially, the criteria that determine each grade level have been tailored to reflect the key things that differentiate used LCVs from cars. This includes a greater tolerance for wear and tear and assessing load areas.

The grade is determined by a visual assessment of a vehicle's cosmetic condition by a NAMA-trained inspector. The inspector captures the type and severity of any damage. Their observations feed into the NAMA system, which uses algorithms to determine the grade. Inspectors work to a common standard and are subject to audits and re-training over time.

Here’s what each grade allows for:

Grade 1:

The LCV may feature:

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 LCV may have numerous defects as per 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 LCV may have defects as per 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 LCV may have defects as per Grade 1, 2 & 3 and could also include or have a combination of: 

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 

What doesn’t the NAMA LCV grading consider?  

Just as with the NAMA scheme for cars, the LCV grading scheme is not designed to be exhaustive and it is not a mechanical inspection. Here’s what it doesn’t consider: 

Keys, service history, ancillary equipment 

Defects not visible from 2m – i.e. underbody and under bonnet 

Identification of previously painted panels 

Defects visible via climbing or crouching 

Any unavoidable wear to components related to normal usage i.e. creases to leather seats 

Mechanical or electrical operation of any interior / exterior component 

Remember, Manheim’s SureCheck inspection applies to LCVs too! It provides buyers with peace of mind about a vehicle's mechanical condition.  

 

A positive development for the wholesale LCV market 

In summary, the new NAMA LCV grading standard is a welcome and positive development for the used LCV sector. It provides consistency, creates trust and will lead to better outcomes for sellers and buyers. I am proud Manheim lead on its development and implementation but welcome its adoption by our peers and competitors too. 

If you’d like to understand more or have any questions, visit our LCV grading webpage, talk to any of our LCV team or email me at matthew.davock@coxautoinc.com.