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Salvage Acquisition – ICBC Buyer Terms & Conditions

June 21, 2012

The Issue: In recent years the price of salvage has risen beyond the recycler’s ability to compete on a level playing field. In the mid 1990’s, ICBC developed its buyer’s terms and conditions in order to curb many of the illegitimate and illegal activities stemming from the misappropriate use and handling of salvaged vehicles. Specifically, they developed their buyer categories based on certain definitions. Salvage is defined within the meaning of 17.1 of the Motor Vehicle Act, and may be designated either Rebuild or Dismantle (DPO). ICBC buyers are defined as follows:

Wrecker/Dismantler: shall mean a person whose business is that of substantially wrecking, dismantling or disassembling and offering for sale the salvageable parts of a motor vehicle.

Rebuilder/Dealer: shall mean a person who is authorized under a motor vehicle dealer’s certificate.

In recent years, however, ICBC has either expanded their category of buyer or reinterpreted existing policy to expand the sale of salvage to buyers falling outside of these definitions.

The Impact: The rise in salvage prices has been fuelled by the global economy, a faulty inspection process for rebuilds, curbing, criminal activity, and the relaxation of rules for salvage buyers. Profits realized from the sale of salvage have encouraged ICBC to relax and/or redefine its buyer terms and conditions, further increasing the number of illegitimate buyers and creating an unfair playing field for legitimate operations.

ARA Position: The ARA believes that as a crown corporation, ICBC must concern itself with the impact of its policies on the public good as a whole, not just the bottom line. The ARA continues dialogue with ICBC on these matters, and vigorously lobbies government on behalf of the industry and the consumer.

  • The ARA believes that cost-savings from the re-uptake of recycled parts into the system outweigh profits from the uncontrolled sale of salvage.
  • As a crown corporation, the ARA maintains that ICBC is required to demonstrate due diligence by monitoring and scrutinizing its buyer-base in consultation with the industry.

For more information, please contact Ken Hendricks at