Individuals in search of cost-effective second-hand vehicles should be cautious as the current high demand has led to increased opportunities for sellers of rebuilt cars who may not disclose the vehicle’s history, according to professionals in the auto industry.
Rebuilt cars are vehicles that have undergone reconstruction after significant damage from accidents, hailstorms, or floods.
“Essentially, a rebuilt vehicle is one that an insurance company had deemed a total loss for some reason at a certain point,” explained Stuart Klein, the vice president of collision programs for the Automotive Industries Association of Canada.
Klein clarified to CBC Radio’s Cost of Living that when a vehicle is declared a write-off, it does not imply that it is irreparable, but rather that the cost of repair surpasses the vehicle’s pre-damage value.
Following a write-off, the vehicle may be sold to a salvage yard where it could be dismantled for parts or auctioned to individuals who refurbish it.
While dealerships are obligated to disclose if a vehicle has been rebuilt, private sellers listing their vehicles on platforms like Facebook Marketplace are not mandated to do so.
Calgary resident Nancy Shadlock unintentionally acquired a rebuilt vehicle in 2021 when her family required a second vehicle upon her return from maternity leave. She came across a listing on Kijiji for a 2010 Nissan Cube.
Shadlock mentioned, “It was a 2010 model with only about 50,000 kilometers, whereas other vehicles I viewed had 150,000 kilometers or more. Additionally, priced at $5,000, it seemed like a bargain.”
It was during the registration process that Shadlock discovered the vehicle’s rebuilt status. Despite feeling somewhat frustrated, she chose not to confront the seller.
Safety Considerations
A rebuilt vehicle may function efficiently without posing safety risks, but Klein highlighted that the intricate technology in modern cars, particularly those from 2016 onwards, has made repairs more complex and precise.
Klein emphasized, “Modern vehicles feature advanced technologies like blind-spot detectors with sensors, radars, and cameras, necessitating recalibration post-accident for each system.”
If these recalibrations are not executed accurately, the vehicle’s safety systems could malfunction, potentially causing unexpected actions like applying brakes erroneously.
Insurance Implications
Sherif Gemayel, an insurance expert in Calgary, stated that not all insurance companies are willing to insure rebuilt vehicles.
