The state has very strict supervision over scrapped cars, aiming at preventing the spare parts of scrapped cars from being refurbished and sold again, causing potential safety hazards. Therefore, it is illegal to buy and sell scrapped vehicles privately, and once they are investigated, they will face high fines.

Article 9 of the Regulations for the Implementation of the Road Traffic Safety Law of the People's Republic of China:

If the registered motor vehicle reaches the compulsory scrapping standard stipulated by the state, the traffic administrative department of the public security organ shall notify the owner of the motor vehicle to cancel the registration 2 months before the expiration of the scrapping period.