Individuals interested in purchasing a pre-owned vehicle should be cautious as the current high demand has led to increased availability of rebuilt cars, with some sellers failing to disclose the vehicle’s history, according to experts in the automotive industry.
Rebuilt cars are those that have undergone reconstruction following significant damage from accidents, hail storms, or floods.
Stuart Klein, the vice president of collision programs at the Automotive Industries Association of Canada, explained that a vehicle labeled as rebuilt was previously considered a total loss by an insurance company due to various reasons.
When a car is declared a write-off, it does not necessarily imply that it is irreparable, clarified Klein during an interview with CBC Radio’s Cost of Living. He emphasized that the cost of repair surpasses the vehicle’s value before the damage occurred.
After being written off, a vehicle may be sold to a salvage yard for parts or could be purchased by someone for restoration.
While dealerships are required to disclose if a car has been rebuilt, private sellers advertising on platforms like Facebook Marketplace are not mandated to do so.
Nancy Shadlock, residing in Calgary, unintentionally bought a rebuilt vehicle in 2021 when her family needed a second car after her maternity leave. She came across a listing on Kijiji for a Nissan Cube.
Shadlock shared that the 2010 model with only 50,000 kilometers caught her attention, especially considering its low price of $5,000 compared to other vehicles with higher mileage.
It was only upon attempting to register the vehicle that Shadlock discovered its rebuilt status. Despite feeling somewhat frustrated, she chose not to confront the seller.
Considerations Regarding Safety
A rebuilt vehicle may function well without safety issues, but Klein highlighted that modern cars, particularly those manufactured from 2016 onwards, contain intricate technology, making repairs more challenging and precise.
Klein emphasized the complexities involved in repairing high-tech systems like blind-spot detectors, which necessitate recalibration post-accident to ensure optimal functionality.
If not calibrated correctly, the vehicle’s safety features could erroneously engage, potentially causing unexpected braking actions.
Insurance Implications
Sherif Gemayel, an insurance industry expert from Calgary, mentioned that not all insurance companies are willing to insure rebuilt vehicles.
Some insurers might provide liability coverage only, while others may request inspections, repair records, or appraisals before offering coverage.
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