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What are the consequences of selling a car as scrap without proper deregistration?

1 Answers
DeJourney
08/27/25 7:13am
Selling a car as scrap without proper deregistration will result in the vehicle owner being unable to register or license other motor vehicles under their name. Unauthorized disposal may also lead to future restrictions on purchasing and driving vehicles. Article 12 of the "Regulations on the Recycling of Scrapped Motor Vehicles" stipulates that no unit or individual may sell, donate, or otherwise transfer scrapped vehicles to any entity or individual other than qualified scrapped vehicle recycling enterprises, nor may they dismantle scrapped vehicles on their own. Article 15 prohibits the use of the "five major assemblies" and parts from scrapped vehicles to assemble other vehicles, and bans any form of trade involving these assemblies or assembled vehicles. These regulations clarify that vehicle owners do not have the right to dispose of vehicles that have reached scrapping standards - only authorized recycling and management units can legally handle them. When a motor vehicle reaches scrapping standards, it must be sent to a qualified dismantling and recycling enterprise. After obtaining the recycling certificate, the owner must complete the vehicle information deregistration process at the vehicle management office. If the vehicle information is not deregistered, it will remain in the database indefinitely. Until this information is processed, the owner will not be allowed to register or license any other motor vehicles under their name - including cars, motorcycles, electric motorcycles, etc. Unless the owner never plans to buy or change vehicles again, this matter must be properly addressed. Having scrapped motor vehicle information under one's name will prevent the processing of any driver's license-related services. Both vehicle information and driver's license services are handled at the vehicle management office. If scrapped vehicles are not properly processed, the owner cannot renew an expired driver's license, apply for additional driving privileges, or downgrade their license. In some cities, scrapped vehicle information is even linked to driver's licenses and credit systems, affecting not just vehicle-related services.
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