Prospective buyers in the market for a used vehicle should be cautious as the surge in demand has led to a rise in the availability of rebuilt cars with potentially undisclosed histories, according to industry experts.
Rebuilt cars are vehicles that have undergone reconstruction following significant damage from accidents or natural disasters like hailstorms or floods.
Stuart Klein, vice president of collision programs at the Automotive Industries Association of Canada, explained that a vehicle is labeled as a total loss by an insurance company when the cost of repair exceeds the pre-damage value of the vehicle.
Although a written-off vehicle can be salvaged for parts or sold to a salvage yard, it may also be repaired and resold at an auction.
While dealerships are obligated to disclose whether a vehicle has been rebuilt, private sellers on platforms such as Facebook Marketplace are not bound by the same regulations.
Nancy Shadlock, a resident of Calgary, unintentionally bought a rebuilt vehicle in 2021 when her family required an additional vehicle after her maternity leave. She came across a listing on Kijiji for a 2010 Nissan Cube.
Shadlock was attracted to the low mileage of approximately 50,000 kilometers and the price of $5,000, which she considered a bargain compared to other options available.
Upon attempting to register the vehicle, Shadlock discovered its rebuilt status, causing initial frustration, although she chose not to confront the seller.
Considerations for Safety
While it is possible for a rebuilt vehicle to function without safety issues, Klein highlighted that modern cars, particularly those manufactured from 2016 onwards, contain intricate technology, making repairs more challenging and precise.
He emphasized that advanced features such as blind-spot detectors require meticulous recalibration post-accident, as any error could trigger the vehicle’s safety systems unnecessarily.
Failure to recalibrate these systems correctly could result in unintended actions, such as the vehicle braking due to misinterpreted obstacles.
Insurance Implications
Sherif Gemayel, an insurance expert in Calgary, noted that not all insurance companies are willing to provide coverage for rebuilt vehicles.
Some insurers may offer limited coverage or demand thorough inspections, repair records, or appraisals before issuing insurance policies. Gemayel emphasized the importance of disclosing a vehicle’s rebuilt status to the insurance provider.
Professionally rebuilt vehicles with comprehensive documentation are generally easier to insure compared to those lacking proper records.