Any legal issues with buying junk cars?

Question

My husbands looking at buying non running junk cars for cheap and hauling them to the scrap yard for extra income. Are there any leagal issue he should be aware of when buying these cars? He was told as long as he get a bill of sales, he's in the clear. Shouldn't he make sure the seller of the car is the actual owner? what if the seller doesn't have a title?

Answer 1

The rules can vary by state in some cases...usually a junk title will need to be filed..

A big question would be is your husband looking to simply pay cash for junk cars (or take them for free)  and take them directly to the scrap yard?

Or is he looking to buy, part out, and then take to the scrap?

If option #1 is more what he plans to do then he may be okay with having the owner worry about title transfers and junk title filing...Call your local DMV to be on the safe side...

Answer 2

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Answer 3

Tennessee is a pretty libertarian state, so the scrap yards are pretty decent to work with.  They do keep records of what you're crushing.  It's pretty obvious if you're crushing something you're not supposed to.  I mean, you can look at a junk car from 2 blocks away and you can tell it's a junk car.

Now - does that mean a misunderstanding could emerge?  Certainly.  If the car's worth $500, then seems like the worst that could happen is you get sued for $500.  The state should care enough to record what's being crushed, but they don't really care.

I guess your husband knows this, but he's going to have LOTS of competition.

Answer 4

no title , leave it alone