Legal Question in Business Law in California

Resale of car parts?

You alwys hear that statistic that supposedly explains car theft - that you can resell the parts of a car for three times the cost of a new car. So... why don't people buy a new car, hire a mechanic to take it apart, and resell the pieces? Is there something legally preventing this practice?


Asked on 10/17/07, 4:13 am

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Resale of car parts?

No, but it's cheaper to steal something than to pay for it. (This is why need criminal laws to deter people from stealing. The fact that it happens anyway means not everyone is being deterred.) Besides, the demand for parts is greater for older models that have had some wear and tear than for new models.

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Answered on 10/17/07, 2:40 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Resale of car parts?

What you are essentially asking is why there is not more of a so-called "grey market" in original equipment manufacturer (OEM) auto parts.

Why isn't there a Fred's Genuine Ford Parts store? The answer is that, through trademark law and other legal methods, the automakers have been successful in maintaining exclusive control of the distribution channels and the prices you pay for genuine OEM parts. It's kind of like the printer cartridge racket.

A recent Supreme Court decision expands the rights of OEMs in this regard. In the case of Leegin Creative Leather Products, Inc. v. PSKS, Inc. (U.S. June 29, 2007, Case No. 06-480), the Court upheld the right of OEMs to agree with distributors on minimum retail prices.

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Answered on 10/17/07, 7:56 pm


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