The “steel box with wheels” definition resonated with the recent news about “chop-shop ripoff” or “fix-and-sell scheme” as some are calling it. What has been reported in the news to date is that 93 “write-off” vehicles “that had suffered severe damage from theft, water or collision were repaired and then resold without being identified as damaged goods” in sales that financially favoured employees of corporations involved in the process. More than 40,000 “write-offs” a year reportedly are sold in BC, one way or another.

 

There have been reports of dismissals in the insurance business, and employees can no longer purchase salvaged vehicles. All but a few of the innocent purchasers have received settlements. Numerous investigations are underway and the RCMP have announced a police investigation is warranted to determine whether any criminal offences have been committed.

 

One issue raised by this story is the elasticity of the definition of a “write-off.” A UK website, www.carinsuranceonline.org.uk defines a “write-off” as a vehicle beyond economical repair and henceforth classified as a category of salvage:

 

[a]        entire vehicle is obviously beyond hope, and has to be crushed.

[b]        parts usable but vehicle cannot be driven again.

[c]        possibly repairable structural damage, but the cost is more than the book value of the car if the repairs are carried out with original manufacturers’ parts obtained at market prices.

[d]        nonstructural damage relatively easily repairable but other costs tip the balance—e.g. excessive cost of a courtesy car during the repair period.

 

The “fix-and-sell-schemers” no doubt benefited from the elasticity of this definition, but so may have the innocent purchasers in the sense that the “written-off” vehicles may have been less seriously damaged and therefore possibly safer than might originally have been thought. Still, nobody wants to acquire a vehicle with an undisclosed history.

 

Car manufacturers tout the strength of their “steel boxes” as one of their most important key safety features. The implication may be that any interference with their integrity is irreversible. But not so according to an experienced auto body repairman who wrote to the Province newspaper as follows: “As for selling cars that have had frame damage, so what? Vehicle frames are repaired daily and are as sound after repairs as before, if the repairs are done properly.” However, “previously written-off” is not an encouraging thought for someone looking for a good used car.