Chop shops are illegal automobile garages that buy stolen cars, disassemble them, and sell the individual parts for a profit. Chop shops often disassemble a car within hours of purchasing it from the thief who stole it—making it difficult for the police and the rightful owner to find the stolen vehicle. Chop shops are often operated in residential garages and small commercial spaces to avoid detection, but are usually part of a large criminal network or organization.

It is a crime under federal law (18 U.S.C. § 2322) to knowingly own, operate, maintain, or control a chop shop. There are significant fines and penalties under federal law for operating a chop shop—up to 15 years imprisonment for a first conviction, with the maximum fine and imprisonment doubled for any subsequent conviction.

States also have criminal laws (located in the penal or criminal code or statutes) that prohibit the operation of a chop shop. An offender may be prosecuted under state chop shop laws in addition to a federal prosecution, or instead of a federal prosecution.

In Arizona, operating a 'chop shop' is a criminal offense under both federal and state law. Federally, under 18 U.S.C. § 2322, it is illegal to knowingly own, operate, maintain, or control a chop shop, with penalties including up to 15 years imprisonment for a first conviction and potentially double that for subsequent convictions. In Arizona, state statutes specifically address the operation of chop shops, making it illegal to engage in such activities. These state laws complement federal legislation and provide a basis for prosecution at the state level. Penalties under Arizona law may include imprisonment, fines, and other sanctions. Offenders can be prosecuted under Arizona state law independently from or in addition to federal prosecution, depending on the circumstances of the case and the discretion of law enforcement agencies.