Ontario man shocked his brand-new truck had a $13,000 damage claim for a stolen catalytic converter

If a vehicle you own was in an accident, it's recorded and could affect how much it's worth when you go to sell it or trade it in. Pat Foran reports.

When purchasing a brand-new vehicle from a dealership, prospective car owners typically expect it to be problem free, with no accidents and a clean Carfax history report.

That’s because if a vehicle was in an accident and it’s recorded on Carfax, it could affect how much it’s worth if someone wants to sell it or trade it in.

Cooper Gallant, of Bowmanville, Ont., is a professional fisherman involved in competitive bass fishing and major tournaments.

He told CTV News that two years ago, he bought a 2023 Dodge Ram pickup truck that he uses to drive all over North America to various fishing events.

He said he recently talked with his father, Gary Gallant, about trading the truck in.

“I think now it’s got exactly 70,000 kilometres on it and because he needs something that is reliable, he was going to trade it in each year and get a new one,” said Gary.

Even though Gallant purchased the truck brand new, he was unaware there was a damage claim on its Carfax report.

“He (the dealer) basically said, ‘You have a $13,000 claim,’ and obviously it was a surprise to me,” explained Gallant. “I said, ‘What do you mean? I don’t have any claims on this truck.’”

It appears when the truck was sitting on the dealer’s lot, thieves cut off and stole its catalytic convertor. The car part is typically stolen and sold on the black market for the precious metals inside, which include platinum, palladium and rhodium. They can be sold for as much as $300 per convertor to salvage yards.

• PREVIOUS COVERAGE: Ontario man says new truck had catalytic converter stolen at dealership

According to the Carfax report, it cost $13,634 to replace the catalytic convertor on the truck. That resulted in the trade-in value dropping.

“I don’t want to lose out on $5,000 to $8,000,” said Gallant. “We obviously were unaware of this whole situation. I want to get the right dollars for the truck – what I deserve to get.”

When Gallant complained to the dealership where he bought it, he said they told him they special ordered the truck and were also unaware of the claim.

He feels replacing the catalytic convertor was not an accident, and should not affect the truck’s resale value.

“The claim against it should not have anything to do with the value of the trade-in.”

When CTV News reached out to Carfax, they agreed to take a look at this issue.

A spokesperson told CTV News, “Given that there was no structural or accident-related damage and that the stolen part was replaced with an OEM (Original Equipment Manufacturer) part, it should not be considered an Accident/Damage record on our Vehicle History Report.”

“After working with OMVIC, we have re-categorized this record to the Service section of the report which better reflects non-collision related vehicle repairs.”

Now, an updated Carfax report does not list any damage or accidents on Gallant’s pickup.

A vehicle with a clean Carfax report generally means it’s worth more as accident and damage claims can raise red flags. Minor fender benders may not be as big an issue, but major accidents can be a deterrent to someone wanting to buy a vehicle.