Texas Salvage YardCheck

What a Texas Used Auto Parts Recycler License Means

What TDLR requires of licensed auto salvage yards under Occupations Code Chapter 2309: insurance, storm water permits, title handling, purchase records, parts holding periods and operating hours.

Who needs the license

Texas has licensed salvage yards that dismantle vehicles and sell used parts since the Used Automotive Parts Recycling Act took effect in 2010 (TDLR FAQ). The rule is simple: a person may not own or operate a used automotive parts recycling business, or sell used automotive parts, without a TDLR Used Automotive Parts Recycler license (Occupations Code §2309.151). The law defines that business as dismantling and reusing or reselling used parts and safely disposing of salvage or nonrepairable vehicles, including reselling those vehicles.

Each license covers one facility. A company with several yards needs a license for each location. Licenses are renewed every year, which is why each listing on this site shows an expiry date.

What it takes to get licensed

Under §2309.153 an applicant must provide a federal tax identification number, proof of general liability insurance of at least $250,000, and proof of a storm water permit if the Texas Commission on Environmental Quality requires one. TDLR's FAQ adds that the principals of the business must pass a criminal background check. City ordinances and permits can apply on top of the state license (§2309.201).

Duties when a recycler buys a vehicle

Records and holding periods for parts

The law includes theft-prevention rules for parts the recycler buys:

If someone offers to buy parts from you, expect to show your driver's license. That is the law working as intended.

Operating hours for heavy machinery

A recycler may not operate heavy machinery at its facility between 7 p.m. and 7 a.m., except for activity necessary to a sale or purchase (§2309.402). Neighbors of a yard sometimes find this useful to know.

Who is not covered

Metal recyclers (scrap metal buyers) generally fall outside Chapter 2309, unless a vehicle is sold to them as a source of used parts and is used that way (§2309.003). Salvage vehicle dealers licensed by TxDMV are also outside it, unless dealing in used parts is more than an incidental part of their business (§2309.004). So a scrap metal yard or a salvage auction may not appear here even though it buys vehicles.

Why this matters when you sell

These duties protect sellers as well as the public. Because a licensed recycler must collect the title, record the purchase and remove the plates, there is a paper trail showing the vehicle left your hands, and the recycler has every reason to complete the transfer properly. A buyer operating without a license has none of those obligations, and if something goes wrong you may have little to point to. That is why every listing on this site shows the license number and expiry from TDLR's file.

Questions to ask a yard

How to check a license and complain

License numbers on paperwork

Ask for the recycler's license number on your receipt or bill of sale. It ties the transaction to a specific licensed facility, which helps if you later need TxDMV, TDLR or the police to trace the vehicle. If a yard has several locations, check that the number matches the yard you are dealing with, since each location holds its own license.

What the license does not tell you

A license shows the yard is authorized to operate. It does not rate prices, part quality or customer service, and it does not mean the yard has a particular part in stock. Call ahead, and for parts read our buying guide.

Updated 2026-10-16.

General information only, current as of the date above. The information on Texas Salvage Yard Check is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.

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