The repairable write-off trap: The used cars you should never buy

There’s nothing quite like seeing one of your favourite cars listed for sale on various online markets at an extremely low price. In haste, you start reading the details: Low kilometres, check; Not too old, check.

Your heart starts to race thinking about finally adding your dream car to your garage, only to find the dreaded ‘repairable write-off’ notification at the bottom of the listing. Depending on the damage of a vehicle post-accident, the car can be categorised into one of two write-off categories.  

The first is a repairable write-off (RWO), which is when the cost to repair the damaged vehicle exceeds the insured market value of the vehicle. These cars can still be re-registered on the road, provided the car has been repaired to ADR specifications and state/territory requirements.

 Meanwhile, a statutory write-off is defined as a car that has sustained so much damage that it cannot be legally re-registered, and is generally used for scrap parts.

While it’s easy to spot statutory write-offs on online marketplaces, repairable write-offs are more of a grey area in the automotive industry. But what makes this sector so murky? Drive finds out.

Experts have highlighted numerous loopholes with Australia’s current RWO regulations that continue to be exploited by crooks who ‘rebirth’ these damaged vehicles to generate profit.

Generally speaking, rebirthing is a colloquial term used to describe an illegal operation where offenders steal cars – or purchase damaged models – and attach new markings, such as Vehicle Identification Numbers (VINs), before reselling them.

In the case of RWOs, a spokesperson for the Victorian Automotive Chamber of Commerce (VACC) – the state’s peak maintenance and repair body – said, “the most common rebirthing scheme involves taking legitimately purchased repairable write-offs and conducting substandard repairs to disguise their written-off status”.

“Criminals may acquire these vehicles through auctions or private sales, then perform cosmetic repairs that mask the underlying structural damage while transferring identification numbers to conceal the vehicle’s true history,” a VACC spokesperson told Drive.

Additionally, the industry body said, “these rebirthed repairable write-offs can sometimes bypass initial inspections if the cosmetic work appears adequate”.

But when it comes to the mandatory Vehicle Identity Verification (VIV) inspection, these examples generally fail “due to poor repair quality or improper documentation of the rebuild process”.

Further compounding the murkiness of RWO vehicles is the fact that state and territory laws differ when it comes to the legality of damaged cars.

New South Wales is currently the only state that prohibits the use of written-off vehicles on state roads, regardless of this condition. And it’s this interstate loophole that crooks continue to exploit.

A spokesperson for the Motor Traders Association (MTA) – NSW’s peak industry body for maintenance – said this legislation gap makes it easier for offenders to continue their illegal rebirthing operations.

“The most common method of vehicle ‘rebirthing’ involves sending repairable write-offs interstate (in states like Queensland or South Australia, where they can be repaired and re-registered) before reselling them back in NSW, often through auction houses,” an MTA NSW spokesperson told Drive.

“These vehicles generally end up interstate, where repair work is carried out and then shipped back to NSW for resale as a used vehicle. Repair to damage can often be difficult to detect on initial inspection, making it hard for consumers to identify a rebirthed vehicle,” they added.

NSW’s peak industry body also pointed to Australia’s insurance system, which “creates an unintended loophole”.

“When a vehicle is damaged, insurers send it to approved repairers, usually new car dealerships, who quote using genuine new parts. If repair costs exceed the vehicle’s value, it’s written off as uneconomical to repair, even though it could potentially be fixed using used or aftermarket parts,” an MTA NSW spokesperson told Drive.

The maintenance and repair organisation also shed light on the fact that in some instances, “uninsured vehicles damaged in NSW can also be repaired privately without ever being listed on the Written off Vehicle Register (WOVR), even when the level of damage means they should have been written off,” they added.  

“This creates risk for consumers, particularly if repairs are not carried out by a licensed or regulated repairer.”

Crucially, the biggest issue when it comes to repairable write-offs is the fact that the general consumer could have unknowingly purchased a lemon.

“The challenge is that the quality repair work can be nearly impossible for consumers to detect visually,” an MTA NSW spokesperson explained.

But there are some general red flags to keep an eye on.

A spokesperson for the VACC told Drive, “Key indicators include mismatched paint around structural repair areas, evidence of recent bodywork that doesn’t align with the vehicle’s claimed history, welding marks in unusual locations, and sellers reluctant to provide complete repair documentation or allow thorough pre-purchase inspections.”

While used car buyers can use a $2.50 Personal Properties Securities Register (PPSR) certificate – which checks if the car has been damaged, if it's been stolen, and whether there's any finance owing to it – industry bodies have pointed out its flaws.

“[The] issue is that the [PPSR] system cannot track privately repaired vehicles. Accidents, particularly those involving uninsured parties, are not always captured on the PPSR,” an MTA NSW spokesperson explained.

“This means vehicles that have sustained major damage may slip through the cracks if they are repaired outside the insurance system.”

Barring NSW, most Australian states and territories also offer government-backed vehicle identity inspections that RWO vehicles must pass before they're legally allowed to be sold back into the used car market.

Additionally, Australia's Written Off Vehicles Register (WOVR) – a national database that stores vehicles that have been declared by authorised repairers as a total loss or repairable write off – is also available through each Australian state and territory's transport department.

Despite a plethora of useful consumer tools, experts said Australia's lack of a national RWO standard, coupled with a lack of enforcement, continues to allow offenders to slip through the cracks.

According to the VACC, “enforcement gaps [within current RWO laws] exist in the private seller market, where many sellers avoid their disclosure obligations. There needs to be greater enforcement in the private seller sector to avoid misleading behaviours and consumers being caught unaware.”

In Australia, private sellers are not legally bound by the law to disclose whether or not the car they're selling is roadworthy, meaning opportunistic crooks could target unsuspecting buyers through this loophole.

Meanwhile, the legislation discrepancy between states and territories also contribute to the illegal behaviour.

“The WOVR system has been highly effective in protecting consumers within NSW, virtually eliminating the 'cut and shut' criminal operations were vehicels were welded together from multiple wrecks,” an MTA NSW spokesperson told Drive.

“However, there are still loopholes. The biggest is the lack of a nationally coordinated system.. A car declared a repairable write-off in Queensland can be repaired and re-registered there, then sold into NSW, even though NSW does not allow repairable write-offs back on the road.

“Until a truly national register is introduced and private repairs are brought into the system, consumers remain vulnerable.”

Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.

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