Is Parting Out A Car Legal?

You’ve heard that one great way to make money off your old car is to part out and sell the pieces separately. This makes sense since there is no way you’ll be able to sell your vehicle whole in its dilapidated state. But because you still have many functional parts, this option seems to be the best one.

However, is it even legal to do this? When you bought your car, you paid for the whole thing — are you allowed to take out parts and sell them without the rest of the car? Keep reading below to find out more about this option and whether it will be a good one for you.

What Does it Mean to Part Out a Car?

If you’ve been searching for the “parting out a car” meaning, you’ve come to the right place. We know all about car components and what can be done with them, as well as what your car is worth.

When you part out a car, you are taking out separate pieces of it. Nearly every part of a car can be taken out including the seats, transmission, axels, and radio.

It is important to note that parting out a car is not an easy job and should not be attempted if you are not a skilled and experienced technician. Many car parts are heavy and dangerous to work with.

Moreover, certain components need special tools to be removed. If you don’t have these tools, you can damage the parts, making them difficult, if not impossible to sell.

Is it Legal to Part Out a Car?

In most cases, it's perfectly fine to part out your car. There are only a few circumstances in which parting out a car is not legal.

If you do not own your car outright, then you should not attempt to part it out. Car ownership is signified by your name being on the title. If a bank or another person’s name is on the title, then you do not own the car.

Parting out a car with a lien on it is called “conversion” and it is illegal. Therefore, if you have not finished paying off your car, even if it’s not in good condition, you should not part it out.

This is because if you end up defaulting on the loan, the lien holder’s method of making themselves whole is repossessing the car. If you have removed or replaced parts on the car, you have diminished its value, and any pieces removed are considered stolen. Never part out a car you have not finished making payments on.

However, if you have paid off your car loan and the title has been transferred to you, then it is legal to do pretty much anything with your vehicle.

Is Selling Car Parts Illegal?

If you are concerned about selling off parts of your car that you own outright, you have little reason to worry. That is because it is completely legal to part out your car and sell the pieces when you are the vehicle owner.

Buying and selling car parts is legal, that’s why you’re able to buy so many bits and pieces for your car! You don’t need to be a body shop or dealership to be able to sell or resell car parts. The components you sell also don’t need to be brand new.

The only caveat to this is that you will need a business license if you sell car parts regularly and are earning a certain amount. You will be responsible for paying taxes and avoiding them can result in legal ramifications.

However, selling parts of a single car to earn some extra cash typically does not require becoming a legal entity. Therefore, in most cases, it is legal to sell your car parts.

Car Worth Can Buy Your Broken Car As-Is

Whether you’re worried about the possible ramifications of parting out your car or you simply don’t want to go through the trouble, Car-Worth.com can help you get rid of your vehicle without the hassle.

We buy junk cars as-is. This means that you won’t have to repair or spruce it up before selling to us. We’ll just need some information about it before we can give you your fair-market estimate.

After you answer some questions about your car and submit the information, we’ll provide your guaranteed quote in less than two minutes. If you agree with it, then just press accept and you’re one step closer to getting cash in your pocket!

Within 24 to 48 hours, a driver will come with your check to pick up your car. You just need to hand over your keys and title and you’re done!

Car Worth makes it easy and hassle-free to sell your broken car. Get a quote today!