Those in the market for a used car should be cautious as the surge in demand has led to an increase in offerings of rebuilt vehicles, with sellers sometimes failing to disclose the vehicle’s history, according to experts in the automotive industry.
Rebuilt vehicles are cars that have undergone reconstruction following significant damage from accidents, hailstorms, or floods.
“Essentially, a rebuilt vehicle is one that an insurance company had classified as a total loss at some point due to various reasons,” explained Stuart Klein, vice president of collision programs at the Automotive Industries Association of Canada.
Klein clarified that a vehicle being deemed a total loss doesn’t necessarily mean it’s irreparable, but rather that the cost of repairs surpasses the pre-damage value of the vehicle.
Typically, a written-off car is either dismantled for parts or sold at salvage auctions to individuals who restore it.
While dealerships are obligated to disclose if a car has been rebuilt, private sellers listing vehicles on platforms like Facebook Marketplace are not bound by the same requirement.
In 2021, Nancy Shadlock of Calgary bought a rebuilt vehicle without realizing its status when her family needed a second car after her maternity leave. A listing for a 2010 Nissan Cube on Kijiji caught her attention.
Shadlock recalled, “It was a 2010 model with only around 50,000 kilometers, priced at $5,000, which seemed like a great deal compared to other higher mileage options.” However, it was during the registration process that she discovered its rebuilt nature. Despite feeling “somewhat frustrated,” she chose not to confront the seller.
The safety aspect
Although a rebuilt vehicle may function without issues and pose no safety risks, Klein highlighted that modern cars, especially those from 2016 onwards, contain intricate technology, making repairs more complex and precise.
He emphasized, “Newer cars are equipped with advanced features like blind-spot detectors that rely on sensors, radars, and cameras, necessitating recalibration after any accident.”
Incorrect recalibration could trigger malfunctions in the car’s safety systems, potentially causing unnecessary braking if the system misinterprets objects on the road.
The insurance perspective
Sherif Gemayel, an insurance industry expert from Calgary, mentioned that not all insurance companies are willing to provide coverage for rebuilt vehicles.
Some insurers may offer only liability coverage, while others might demand inspections, repair records, or appraisals before issuing policies. Gemayel, who also
