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Branding Legislation is Law
In Ontario alone, it is estimated that organized crime derives $600 million a year from the sale of stolen vehicles. Each year, Toronto Police identify more than 1,000 vehicles that have illegally been given a ?new? Vehicle Identification Number (VIN).
You should be aware that the police could confiscate a stolen vehicle that has been illegally given a ?new? VIN. Many of these ?new? VINS (attached to stolen vehicles) originated from total loss (?written-off?) vehicles. As a consumer you may have little recourse against the seller unless the vehicle had been purchased from a registered dealer.
In 2003 the Automotive Industry Stakeholders, that included representatives of Retail Automobile Dealers, Ministry of Transportation, Insurance Companies, Collision Industry, Recyclers and several Police Departments, collectively devised a mandatory vehicle branding program that addresses the issue of vehicles that are severely damaged to the point of total loss and meet the branding criteria. Insurance companies, auto recyclers, salvagers, auctioneers, dealers, rental fleets and individual vehicle owners must assign a brand type to severely damaged vehicles and report them to the Ministry of Transportation.
The insurance companies through salvage auctions were selling the written-off vehicles, to individuals and small businesses. Some of which would subsequently rebuild the vehicles and sell them to consumers without disclosing the fact that the vehicle was damaged or written-off by the insurance company. In many cases the vehicle was not transferred into the insurance company?s name, (as the purchaser of the written-off vehicle), but had remained in the name of the original owner. Thus, a consumer attempting to verify a vehicle?s history would not discover that the vehicle had been previously declared a total loss (?written-off?).
Two issues were paramount; one was to ensure that the vehicles being rebuilt met an industry standard of repair that would confirm that the vehicle was safe to drive. The Stakeholders established a series of standards that a repair facility must meet in order for a vehicle to be rebuilt, which included the use of proper equipment, the quality of workmanship and the repairs being completed by certified technicians.
Secondly, the Stakeholders addressed the increasing problem of ?false VIN?s?. Resulting when a VIN from a stolen vehicle was replaced with one from that of a total loss (?written-off?) vehicle and subsequently sold to an unsuspecting consumer.
There are recorded cases where consumers have paid private sellers for a vehicle only to have the police seize the vehicle. The consumer no longer had a vehicle, may have had a loan to repay and had little recourse against the private seller because his whereabouts were unknown.
Anyone who comes into possession of a severely damaged or total loss vehicle must determine the brand to be applied. Individuals are required to have the brand determined by a qualified technician at a Motor Vehicle Inspection Station.
?Brands? are assigned to the vehicle?s registration and history for total loss (?written-off?) vehicles that meet the branding criteria. One designation is ?irreparable? which signifies that the vehicle has been so severely damaged that it could not be repaired to a level safe enough to drive. A vehicle that receives this designation cannot be driven, plated, or registered in the Province of Ontario. In fact, vehicles with this brand can only be used for parts or scrap.
The second designation of a total loss (?written-off?) vehicle is ?salvage?. This designation means the vehicle can be repaired to a safe driving condition. However, the designation ?salvage? also means the vehicle cannot be driven, plated or registered until it is rebuilt to a state defined as structurally sound. It must also pass a rigorous inspection by a licensed auto collision technician who attests, in a written document, that the vehicle meets the standards of repair, and is structurally safe (to drive). The vehicle must still successfully pass safety standards inspection and a drive clean test (where applicable).
Once the individual who has rebuilt the ?salvage? vehicle receives the written confirmation from the technician, he must present it at the licensing office before having the vehicle re-branded and registered as ?rebuilt?. This designation will permanently remain on the vehicle registration.
Keep in mind by purchasing a vehicle from your New-Car Dealer, you can drive away in a pre-owned vehicle with the confidence of knowing that dealerships verify vehicle history to ensure that pre-owned vehicles are not stolen, any ?salvage? history has been disclosed and are lien free.
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