Prospective buyers in the market for a used vehicle should be cautious as the heightened demand has led to an increase in offerings of rebuilt cars with potentially undisclosed histories, according to experts in the automotive industry.
Rebuilt vehicles are those that have undergone reconstruction after sustaining significant damage from accidents or natural disasters such as hailstorms or floods.
“Essentially, a rebuilt vehicle is one that an insurance company had previously declared as a total loss due to specific reasons,” explained Stuart Klein, the vice president of collision programs at the Automotive Industries Association of Canada.
Although a written-off vehicle may not be irreparable, Klein emphasized that the costs of repairing it surpass its pre-damage value.
Following a write-off, such vehicles are commonly sold to salvage yards for parts or may be auctioned for refurbishment.
While dealerships are legally obligated to disclose if a car has been rebuilt, private sellers advertising on platforms like Facebook Marketplace are not subjected to the same requirements.
Nancy Shadlock, residing in Calgary, inadvertently bought a rebuilt vehicle in 2021 when her family required a second vehicle at the conclusion of her maternity leave. She came across a listing on Kijiji for a 2010 Nissan Cube.
Shadlock recalled, “It was a 2010 model with only around 50,000 kilometers on it, priced at $5,000, which was considerably lower than other options I had seen with 150,000 kilometers or more.”
It was during the registration process that Shadlock discovered the vehicle’s rebuilt status, expressing initial frustration but opting not to pursue a complaint against the seller.
Safety Concerns
While there is a possibility that a rebuilt vehicle operates without safety issues, Klein highlighted the intricate technology in modern cars, especially those post-2016, making repairs more complex and precise.
“The advanced technology in newer cars, such as blind-spot detectors, involves highly sophisticated systems with sensors, radars, and cameras that require recalibration post-accident,” he explained.
Incorrect recalibration could result in malfunctions, where the car’s safety features, for instance, may mistakenly engage, potentially causing unexpected braking.
Insurance Considerations
Sherif Gemayel, an insurance industry expert from Calgary, noted that not all insurance companies are willing to insure rebuilt vehicles.
Some insurers may only offer liability coverage or mandate inspections, repair records, or