Prospective buyers seeking second-hand cars should be cautious as the current high demand has led to a rise in sellers offering rebuilt vehicles without disclosing their history, according to industry experts.
Rebuilt cars are vehicles that have undergone reconstruction following significant damage from accidents, hail storms, or floods.
“Essentially, a rebuilt vehicle is one that had been declared a total loss by an insurance company due to various reasons,” explained Stuart Klein, Automotive Industries Association of Canada’s vice president of collision programs.
Klein clarified on CBC Radio’s Cost of Living that a written-off vehicle doesn’t necessarily mean it’s irreparable but that the cost of repairs surpasses the vehicle’s pre-damaged value.
Following a write-off, a vehicle is commonly sold to salvage yards for either parts scrapping or potential refurbishment by a buyer.
While dealerships are required to disclose if a car is rebuilt, private sellers advertising on platforms like Facebook Marketplace are not mandated to do so.
Calgary resident Nancy Shadlock unintentionally bought a rebuilt car in 2021 when her family needed a second vehicle after her maternity leave. She came across a 2010 Nissan Cube on Kijiji, with only 50,000 kilometers and priced at $5,000.
It was during registration that Shadlock discovered the car’s rebuilt status, leaving her “a bit frustrated,” although she chose not to confront the seller.
Considerations for Safety
While a rebuilt vehicle may operate without safety issues, Klein highlighted the challenge of repairing modern vehicles with intricate technologies, especially those post-2016.
He noted that features like blind-spot detectors require meticulous recalibration post-accident as any errors could trigger safety systems erroneously.
Incorrect calibration might lead to scenarios where the vehicle’s technology misinterprets objects, potentially causing sudden braking actions.
Insurance Implications
Not all insurance companies are willing to cover rebuilt vehicles, as mentioned by insurance expert Sherif Gemayel in Calgary.
Some insurers may only offer liability coverage or require detailed inspections, repair records, or appraisals before providing insurance. Gemayel, CEO of Trufla Technology, emphasized the necessity of strong documentation for insuring professionally rebuilt vehicles.
Drivers are obligated to inform their insurance providers of a vehicle’s rebuilt status at all times.
