Prospective buyers seeking a bargain on a pre-owned vehicle should be cautious as the current market demand has led to opportunities for sellers offering rebuilt cars without disclosing their history, according to experts in the automotive industry.
Rebuilt cars are vehicles that have undergone repairs after sustaining significant damage from accidents, hailstorms, or floods.
Stuart Klein, the vice president of collision programs at the Automotive Industries Association of Canada, explained that a vehicle marked as “rebuilt” had previously been declared a total loss by an insurance company due to damage that exceeded its pre-damage value.
While a written-off vehicle may be sold to a salvage yard for parts or restoration, private sellers on platforms like Facebook Marketplace are not obligated to reveal a car’s rebuilt status, unlike dealerships.
Nancy Shadlock, residing in Calgary, unintentionally purchased a rebuilt vehicle in 2021 when her family needed a second car after her maternity leave. She found a listing on Kijiji for a 2010 Nissan Cube, attracted by its low mileage of about 50,000 kilometers and a price of $5,000.
Upon registering the vehicle, Shadlock discovered its rebuilt status, causing initial frustration but deciding against confronting the seller.
Considering Safety
A rebuilt vehicle may operate without safety issues, but advancements in modern car technologies, especially in vehicles from 2016 onwards, have made repairs more intricate and precise, warned Klein.
The complex systems in newer cars, such as blind-spot detectors and sensors, require meticulous recalibration after any accident to prevent malfunctions that could lead to safety hazards.
Improper recalibration may trigger incorrect responses from the vehicle’s safety technology, potentially causing unexpected braking incidents.
Insurance Implications
Not all insurance providers are willing to insure rebuilt cars, mentioned Sherif Gemayel, an insurance expert based in Calgary.
Insurance companies may offer limited coverage for rebuilt cars, necessitating inspections, repair records, or appraisals before providing insurance. Gemayel emphasized the importance of transparently disclosing a vehicle’s rebuilt status to insurers.
Professionally rebuilt cars with comprehensive documentation are typically easier to insure compared to those lacking proper records.