In the market for a used car? Be cautious as the high demand has led to more sellers offering rebuilt vehicles without disclosing their history, according to experts in the auto industry.
Rebuilt cars are those that have been reconstructed after significant damage from accidents, hailstorms, or floods. These vehicles would have been declared a total loss by an insurance company at some point, explained Stuart Klein from the Automotive Industries Association of Canada.
After being written off, a car may end up at a salvage yard where it could be dismantled for parts or repaired and sold at auction. While dealerships are required to disclose a car’s rebuilt status, private sellers on platforms like Facebook Marketplace are not obligated to do so.
Nancy Shadlock of Calgary unknowingly purchased a rebuilt vehicle in 2021 when she needed a second car after returning from maternity leave. She found a Nissan Cube on Kijiji that seemed like a good deal, but only discovered its rebuilt status when registering the vehicle.
When it comes to safety, rebuilt cars, especially newer models with advanced technology, may pose risks if not properly repaired. Complex systems like blind-spot detectors require precise recalibration after accidents to function correctly, according to Klein.
Insurance coverage for rebuilt cars can also be challenging, as not all providers are willing to insure them. Some companies may require additional inspections, repair records, or appraisals before offering coverage.
While the average cost of used vehicles in Canada has increased significantly in recent years, rebuilt cars typically sell for 10 to 30 percent less than equivalent used vehicles, estimates Martin Hausner from The Loan Store.
The prevalence of rebuilt cars is on the rise, with the portion of reports for cars with rebuilt titles increasing from 0.9 percent in 2015 to 1.3 percent in 2025, according to CARFAX. Shadlock’s experience with her $5,000 rebuilt car turned out well, but she recommends checking vehicle history reports like CARFAX before making a purchase.
Despite not intending to buy a rebuilt car, Shadlock’s family had a positive experience with their Nissan Cube, which retained its value and served them well over the years.