Is it illegal to part out financed car?

In most jurisdictions, it is illegal to sell, trade, or dispose of a financed vehicle without the consent of the lienholder (usually the bank or other lender). This includes removing and selling parts from a financed car, as this could be considered a form of conversion or embezzlement.

In some cases, a lender may allow a borrower to part out a financed car, but this will usually require written permission and may be subject to certain conditions. For example, the lender may require the borrower to obtain a written estimate of the value of the car's parts and may also require the borrower to use the proceeds from the sale of the parts to reduce the outstanding loan balance.

If you are considering parting out a financed car, it is important to first check with your lienholder to make sure that it is permitted and to understand any conditions that may be imposed. If you proceed without the consent of the lienholder, you could face legal consequences, including fines, imprisonment, or civil lawsuits for damages.