Vehicle theft set to fuel growth in stolen parts market

Consumers could lose everything if a vehicle they bought from a curbsider is seized by police and found to include stolen parts.

Ontario’s vehicle theft epidemic is putting consumers at risk of unwittingly buying cars with stolen parts. In a recent article, we described how curbsiders – unlicensed motor vehicle dealers – are siphoning ‘re-vinned’ vehicles with new identities back into the car market. But it’s not only complete stolen vehicles that are being bought by unsuspecting consumers. 

According to OMVIC, Ontario’s motor vehicle regulator, because of the renewed focus on combatting the criminal activity exporting stolen vehicles through Canadian ports, criminals could instead shift their focus to remarketing parts from stolen vehicles by ‘chop shops.’ 

These underground operators have traditionally specialized in parting-out lower-end vehicles. But as law enforcement agencies tighten the screws on vehicle trafficking operations and moves are made to close registration loopholes, criminals are faced with fewer channels through which to dispose of the stolen cars. 

“Another viable and emerging opportunity for criminals is parting out the cars, including those from high-end brands,” says Sam Cosentino, OMVIC’s director of enforcement. “That’s still a lucrative option, because when you part out a car, you can sometimes make double or triple the value of the vehicle. 

“We’re talking fenders, doors, interiors, engines, transmissions and more,” he continues. “When these items come off the vehicles in a chop shop, the illegal operators will try to remove whatever identifying features are installed on the components. Sometimes the parts have anti-theft labels that they try to remove. They’ll then sell what they can to unscrupulous body shops.” 

It’s here that curbsiders enter the picture. Some of the vehicles bought and sold by these unlicensed traders have been stolen and re-vinned, but many more are insurance wrecks that need to be repaired before resale to the public. 

“They need to fix them as cheaply as possible,” explains Cosentino, “so often they use either substandard parts or stolen parts they can get on the black market – paying a fraction of the cost of going to a manufacturer and buying a hood, a fender or doors, for example. If they can get the parts at a lower price point, that’s more profit for them.” 

For consumers subsequently buying the repaired vehicle from a curbsider, the risk is that the entire vehicle could be subject to a police seizure. If that happens, you could lose everything. 

“Once the car goes through an identification process, you’ll get back what is lawfully yours,” Cosentino adds. “You may get it back with no doors and no hood. Perhaps you’ll get the engine but not the transmission. The original owner’s insurance company will own all of the other parts.” 

If you’ve unknowingly bought a stolen vehicle, or one that has stolen parts, and you purchased privately from a curbsider or any other private seller, there is no recourse. However, if you bought from a registered dealer then you have protection under Ontario’s Motor Vehicle Dealer Act (MVDA). That applies whether you bought a stolen vehicle in its entirety or one that has had stolen parts fitted to it. In such cases, consumers can apply to OMVIC’s Compensation Fund, assuming that they weren’t complicit in the fraudulent transaction. 

“Our advice is always to buy from a licensed dealer,” sums up Cosentino. “You’ll buy with the peace of mind that if the worst should happen, your investment is protected.” 

OMVIC has been delegated responsibility for administering and enforcing the Motor Vehicle Dealers Act (MVDA). Visit omvic.ca to learn about your consumer rights when you purchase from an OMVIC registered dealer and sign up for OMVIC’s monthly newsletter. 

Contact OMVIC’s Complaints & Inquiries Department at [email protected] or 1-800-943-6002 for advice and answers to all your car-buying questions. 

This story was created by Content Works, Postmedia’s commercial content division, on behalf of OMVIC.