A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts. So my question is, is this something that's common and I shouldn't be concerned about it, or should I back out from buying the vehicle?This research guide includes information and resources on arbitration. This type of dispute- resolution process occurs when "disputing parties. It sets forth the procedures for operation of state certified new and used car arbitration and is designed to promote the speedy, efficient, and fair. What was the price of the car? How much did you pay? 5 days after purchase I found 2 rental agreements in the glove compartment. Does this seem fair to the consumer? Find out who your Division Commander is, Neighborhood Police Officer (NPO) and more. Search.