A lighted vehicle bin assembly that activates a light source based on motion and recalibrates a sensor is provided. The lighted vehicle bin assembly includes a vehicle storage bin, a light source arranged to illuminate the bin, and a proximity sensor for sensing an object in the bin based on a sensor signal relative to a threshold. The lighted vehicle bin assembly also includes a controller that activates the light source when the sensor signal exceeds a threshold and recalibrates the sensor when the sensor signal exceeds the threshold for a time period.