Individuals in the market for a pre-owned vehicle should be cautious as the current high demand has led to an increase in the availability of rebuilt cars, with some sellers not fully disclosing the vehicle’s history, according to experts in the automotive industry.
Reconstructed vehicles are those that have undergone repair after sustaining significant damage from a collision or other events such as hailstorms or floods.
Stuart Klein, the vice president of collision programs at the Automotive Industries Association of Canada, explained that a vehicle labeled as “rebuilt” had been previously declared a total loss by an insurance company for various reasons.
Klein, speaking on CBC Radio’s Cost of Living, clarified that when a vehicle is written off, it does not necessarily mean it is irreparable, but rather that the cost of repair exceeds the vehicle’s pre-damage value.
Following a write-off, vehicles are typically sold to salvage yards where they may be dismantled for parts or auctioned to individuals who restore them.
While dealerships are obligated to disclose if a vehicle has been rebuilt, private sellers listing their cars on platforms like Facebook Marketplace are not subjected to the same requirement.
Nancy Shadlock, a resident of Calgary, unknowingly acquired a rebuilt vehicle in 2021 when her family required a second car upon her return from maternity leave. She came across a listing on Kijiji for a Nissan Cube, which caught her attention.
Shadlock noted that the 2010 Nissan Cube had low mileage of around 50,000 kilometers, priced at $5,000, which appeared to be a great deal compared to other higher mileage options she had seen.
It was only during the registration process that Shadlock discovered the vehicle’s rebuilt status. Despite feeling somewhat frustrated, she chose not to confront the seller about the omission.
Safety Concerns
While a rebuilt vehicle may operate without issues and pose no safety risks, Klein highlighted that the advanced technology found in newer cars, particularly those from 2016 onwards, makes repairs more complex and precise.
He emphasized the intricate nature of modern car systems, such as blind-spot detectors and sensors, which require precise recalibration following any accident to ensure proper functioning.
Incorrect calibration could result in safety systems misinterpreting obstacles, potentially leading to unexpected braking incidents.
Insurance Considerations
According to Sherif Gemayel, an insurance industry expert based in Calgary, not all insurers are willing to provide coverage for