Individuals hunting for a bargain in the pre-owned car market should be cautious as the current high demand has paved the way for sellers of reconstructed vehicles who might not disclose the complete history of a vehicle, according to professionals in the automotive industry.
Rebuilt cars are those that have undergone reconstruction after significant damage from accidents, hailstorms, or floods.
“Essentially, this means the vehicle was previously considered a total loss by an insurance company due to specific reasons,” explained Stuart Klein, the vice president of collision programs at the Automotive Industries Association of Canada.
Klein clarified to CBC Radio’s Cost of Living that when a car is written off, it does not necessarily mean it is irreparable. However, the cost of restoring it surpasses its pre-damaged value.
Following a write-off, the vehicle is commonly sold to salvage yards. It may either be dismantled for spare parts or auctioned to individuals who refurbish it.
While dealerships are obligated to reveal if a vehicle has been rebuilt, private sellers advertising on platforms like Facebook Marketplace are not legally required to do so.
Nancy Shadlock, residing in Calgary, unintentionally bought a rebuilt car in 2021 when her family needed a second vehicle after her maternity leave. She came across a listing on Kijiji for a Nissan Cube.
“It was a 2010 model with only around 50,000 kilometers,” Shadlock mentioned, noting that other cars she viewed had over 150,000 kilometers. Additionally, priced at $5,000, she considered it a steal.
It was during the registration process that Shadlock discovered the vehicle’s rebuilt status. Although initially frustrated, she chose not to confront the seller.
The safety aspect
A rebuilt vehicle, if fortunate, might operate efficiently without posing safety risks. However, Klein highlighted that the advanced technology in modern vehicles, particularly those from 2016 onwards, has made vehicle repairs significantly more intricate and precise.
“Today’s cars feature sophisticated systems like blind-spot detectors, which include sensors, radars, and cameras that necessitate recalibration post-accident,” he explained.
If these recalibrations are not executed accurately, the vehicle’s safety features could malfunction, potentially causing abrupt braking due to misinterpretations.
The insurance perspective
Sherif Gemayel, an insurance industry expert in Calgary, mentioned in an email to CBC that not all insurance companies are willing to insure rebuilt vehicles.
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