Rebuilt cars are cheaper than other used vehicles. But it's buyer beware

Rebuilt vehicles—cars repaired after severe damage like collisions, hail, or floods—are often cheaper than other used vehicles in Canada, but buyers face risks if sellers fail to disclose their history. Stuart Klein, vice president of collision programs for the Automotive Industries Association of Canada, explains that insurers deem these vehicles a total loss when repair costs exceed their pre-damage value. While dealerships must disclose rebuilt status, private sellers on platforms like Facebook Marketplace or Kijiji are not required to do so. Nancy Shadlock from Calgary unknowingly purchased a rebuilt 2010 Nissan Cube in 2021, drawn by its low price of $5,000 and low mileage of 50,000 kilometers. She only discovered its rebuilt status during registration, leaving her frustrated but unable to take further action against the seller. Modern vehicles, particularly those from 2016 onward, present additional risks due to complex technology like blind-spot detectors and radar systems, which require recalibration after repairs. Stuart Klein warns that improper repairs can cause assistive systems to malfunction, such as misinterpreting obstacles like telephone poles as threats. Insurance companies often refuse coverage for rebuilt vehicles or require inspections and repair documentation, according to Sherif Gemayel, an insurance expert and CEO of Trufla Technology. The demand for affordable used vehicles has driven up prices, with the average cost of a used car in Canada now at $36,713, slightly down from last year but significantly higher than pre-pandemic levels. While rebuilt vehicles offer financial savings, buyers must verify their history to avoid safety hazards and insurance issues.