The National Auto Auction Association has warned its 360 member auctions that payment to customers of cash incentives to bid on vehicles violates its code of ethics and could cost them their membership.

In a resolution passed by the NAAA board, it was pointed out that payment of monetary incentives is permissible if done by a check payable to the customer or credited to the dealer’s account. The resolution said cash payments are forbidden whether made by an auction member or a third party.

NAAA President Raymond C. Nichols, of Bel Air, Md., told the board that “despite long-held NAAA recommendations and policies, the issue of cash payments by sellers at auctions remains an ongoing concern of our members and dealer customers.”

The NAAA also announced that Peter Lukasiak, 59, its executive director since 1988, will retire at the end of the year. A search committee plans to introduce Lukasiak’s successor at the association’s annual convention September 10-15 in New York City.

Lukasiak previously worked on the NADA staff. He will remain an NAAA consultant.