According to experts in the automotive industry, the current high demand for second-hand cars has led to an increase in the availability of rebuilt vehicles, raising concerns about undisclosed vehicle histories.
Rebuilt vehicles are those that have undergone reconstruction after significant damage from accidents, hail storms, or floods.
Stuart Klein, the vice president of collision programs for the Automotive Industries Association of Canada, explained that a rebuilt vehicle had likely been declared a total loss by an insurance company at some point due to the repair costs exceeding the vehicle’s pre-damage value.
Following a total loss designation, a vehicle is typically sold to a salvage yard for parts or may be auctioned to individuals who restore it.
While dealerships must disclose if a car has been rebuilt, private sellers listing vehicles on platforms like Facebook Marketplace are not obligated to provide this information.
One example is Nancy Shadlock from Calgary, who unintentionally bought a rebuilt vehicle in 2021 when her family needed an additional vehicle after her maternity leave. She came across a listing on Kijiji for a 2010 Nissan Cube priced at $5,000, which appeared to be a great deal compared to other higher mileage vehicles.
It was only during the registration process that Shadlock discovered the vehicle’s rebuilt status, leading to some frustration, although she chose not to confront the seller.
Considerations for Safety
While some rebuilt vehicles may operate safely, Klein emphasized that modern car technology, especially in vehicles from 2016 onwards, involves intricate repairs requiring precise handling.
He highlighted the complexity of high-tech features like blind-spot detectors and sensors, which necessitate recalibration post-accident to prevent malfunctioning systems.
Failure to conduct proper recalibrations could result in faulty assistive technology, potentially causing unexpected braking due to misinterpretations by the vehicle’s sensors.
Insurance Implications
Sherif Gemayel, an insurance industry expert, mentioned that not all insurance providers are willing to insure rebuilt vehicles, with some offering limited coverage or requiring thorough inspections and documentation before issuing policies.
Professionally reconstructed vehicles with comprehensive documentation are generally easier to insure, but it remains the driver’s responsibility to disclose a vehicle’s rebuilt status to their insurer.
