Individuals in the market for a used vehicle should be cautious as the current high demand has led to opportunities for sellers of rebuilt cars who may not disclose the vehicle’s history, according to experts in the automotive industry.
Rebuilt cars are vehicles that have undergone reconstruction after significant damage from an accident or natural disasters like hailstorms or floods.
“Essentially, a rebuilt car refers to a vehicle that an insurance company previously classified as a total loss due to various reasons,” explained Stuart Klein, the vice president of collision programs at the Automotive Industries Association of Canada.
Klein further elaborated on the fact that when a car is written off, it does not necessarily mean it is irreparable, but the cost of repairs surpasses the vehicle’s pre-damage value.
Following a write-off, the car is commonly sold to a salvage yard, where it can either be dismantled for spare parts or auctioned off for refurbishment.
While dealerships are obligated to disclose if a vehicle has been rebuilt, private sellers advertising on platforms such as Facebook Marketplace are not subject to the same requirements.
Nancy Shadlock, a resident of Calgary, inadvertently acquired a rebuilt vehicle in 2021 when her family required a second vehicle following her maternity leave. A listing on Kijiji for a Nissan Cube caught her attention.
Shadlock recalled, “It was a 2010 model with only around 50,000 kilometers, while other cars she viewed had over 150,000 kilometers. Additionally, priced at $5,000, it appeared to be a bargain.”
It was during the registration process that Shadlock discovered the car’s rebuilt status. Although initially frustrated, she chose not to confront the seller regarding the matter.
Considerations for Safety
Although a rebuilt vehicle may operate without safety issues, Klein emphasized that modern vehicles, particularly those manufactured after 2016, incorporate intricate technology, making repairs more challenging and precise.
Klein highlighted, “Advanced features like blind-spot detectors involve high-tech systems with sensors, radars, and cameras, necessitating recalibration after any accident.”
If not correctly calibrated, the vehicle’s safety systems could malfunction, potentially triggering unwarranted braking due to misinterpretation of obstacles.
Insurance Implications
Sherif Gemayel, an insurance expert in Calgary, explained that not all insurance companies are willing to provide coverage for rebuilt vehicles.
Some insurers may offer liability-only coverage, while others might demand inspections, repair records