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 North Carolina, operating a 'chop shop' is illegal under both federal and state law. Federally, 18 U.S.C. § 2322 criminalizes the knowing ownership, operation, maintenance, or control of a chop shop, with penalties of up to 15 years imprisonment for a first conviction and potential doubling of fines and imprisonment for subsequent convictions. In North Carolina, state statutes also prohibit the operation of chop shops. These laws are designed to combat the illicit trade of stolen vehicles and their parts. An individual involved in such operations can face prosecution under state law, which may carry its own set of penalties, including fines and imprisonment. Moreover, offenders can be prosecuted under state law either in addition to or instead of federal prosecution, depending on the circumstances of the case.