VIN CHECK: Salvage Rebuilds

What is a salvage rebuild?

If you have been looking around for a used car in Canada, you probably have come across some rebuilt salvage vehicles. These vehicles have been previously declared by the insurance company as a total loss due to damage from theft, fire, flood, or collision. If the insurance company decides or the private owner wants to repair and re-sell the totaled car, they get a “salvage” brand for the car. This particular brand on the vehicle registration document is permanent.

When does a salvage vehicle’s status become “rebuilt” ? The “rebuilt” status is acquired after necessary repairs and restorations are done to make the vehicle road-worthy. A licensed inspection technician thoroughly inspects the vehicle to check if it is compliant with the specifications of the Original Equipment Manufacturer (OEM) or Inter-industry Conference on Auto Collision Repair (I-CAR).

Vehicle brands are printed on the ownership/registration card. A “None” or “Normal” brand or a “Rebuilt” brand means that the vehicles can legally operate on the road.

What are the disadvantages or dangers of buying a rebuilt salvage vehicle?

Since a car with a “rebuilt” brand has suffered enough damage to earn it a salvage brand previously, even if it looks good from the outside and passes the required inspection, the severity of the damage can be destructive to a car’s structural integrity. Besides the obvious safety concerns with a vehicle that may not be structurally sound, here are a few other reasons to think twice before buying a salvage rebuild:

Unattractive to financiers or insurers

Proper valuation of a used car with so many unknowns can be quite difficult or discouraging. It would be also very challenging to find an auto insurance company that is willing to write collision and comprehensive policies on a rebuilt vehicle. The same is true for lenders who must secure an auto loan against the value of the vehicle.
Minimal resale value, less desirable

The value of a salvage rebuild may be closer to 50 percent or less than the exact year/make/model vehicle with a clean registration record. In fact, Edmunds and Kelley Blue Book have no figures for these vehicles. Needless to say, a rebuilt salvage is usually less desirable compared to low-priced used cars with a clean status. Expect the pool of potential buyers to be quite small because of the inherent safety risks and difficulty of finding financing or insurance.
Plan on keeping it forever

Even if you are willing to take a lower price in the event that you would like to sell your vehicle down the road, salvage rebuilds are extremely difficult to sell. Because they are so difficult to finance, and because of the inherent safety risks, the pool of potential buyers is quite small when a rebuilt brand is involved.
Fraud is commonplace

Some people are afraid of buying used cars because of the possibility of getting a salvage or rebuilt vehicle and not even know it. Even if you know about the rebuilt salvage status, you do not get the whole picture of the vehicle’s condition. How were the repairs completed? Were worn-out, salvage, or low-quality parts used in the repairs? Was it a flood vehicle that is now susceptible to premature corrosion? Were the bodywork and paint done correctly, or will it begin to crumble soon after you shell out your cash?

How do I protect myself from the risks involved?

A rebuilt salvage car will never be as good as one with a clean registration record regardless of how well it was repaired. Here are some important points to keep in mind when shopping for your next car:

Ask to see the vehicle registration or ownership document

Watch out for these brands on the ownership document– salvage, rebuilt, irreparable or stolen. Your province or local registrar will have the specific markings to look for on the document. Additionally, you should check the document closely to make sure it has not been physically altered in any way.
Get a professional inspection

Make sure you get a thorough mechanical inspection of all drivetrain and safety systems. Take it to your local licensed inspection technician or a qualified inspection company. These companies can conduct a top to bottom inspection and provide you with a written report.
Run a VinAudit report

A quick check will give you detailed vehicle specifications, current and historical title or registration records, and report on any issues across potential brands, including the date and entity reporting. This information is provided by government agencies, the auto industry, insurance companies, and junk and salvage yards.
Check with your insurance company

Verify that you are able to attain the policy you desire. Most insurers stay away from salvage vehicles. If they are willing to insure the vehicle, get a detailed quote, as the premiums on these policies can add up to be much greater than what you may have saved on the purchase of the vehicle.

VIN CHECK: Salvage Rebuilds

What is a salvage rebuild?

What are the disadvantages or dangers of buying a rebuilt salvage vehicle?

Unattractive to financiers or insurers

Minimal resale value, less desirable

Plan on keeping it forever

Fraud is commonplace

How do I protect myself from the risks involved?

Ask to see the vehicle registration or ownership document

Get a professional inspection

Run a VinAudit report

Check with your insurance company

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