A kit car is an automobile that is available as a set of parts that a manufacturer sells and the buyer then assembles into a functioning car. Usually, many of the major mechanical systems such as the engine and transmission are sourced from donor vehicles or purchased new from other vendors. Kits vary in completeness, consisting of as little as a book of plans, or as much as a complete set with all components included except donor vehicle parts.
There is also a sub-set of the kit car, commonly referred to as a "re-body", in which a commercially manufactured vehicle has a new (often fiberglass) body put on the running chassis. Most times, the existing drive gear and interior are retained. These kits require less technical knowledge from the builder, and because the chassis and mechanical systems were designed, built, and tested by a major automotive manufacturer, a re-body can lead to a much higher degree of safety and reliability.
The definition of a kit car usually indicates that a manufacturer constructs multiple kits of the same vehicle, each of which it then sells to a third party to build. A kit car should not be confused with a 'hand built' car or 'special' car, which is typically built from scratch by an individual, or a component car which is a self-assembly car that where 100% of the parts required to build the car are purchased from a single company. Component Cars are distinguished from kit cars as all parts are quality controlled and designed to fit together perfectly. They can be built in significantly less time than a "kit car".
Kit cars have been around from the earliest days of the automobile. In 1896 the Englishman Thomas Hyler-White developed a design for a car that could be assembled at home and technical designs were published in a magazine called The English Mechanic. In the USA, the Lad's Car of 1912 could be bought for $160 ($3000 US in 2006) fully assembled or $140 ($2600 US in 2006) in kit form.
It was not until the 1950s that the idea really took off. Car production had increased considerably and with rust proofing in its infancy many older vehicles were being sent to breaker yards as their bodywork was beyond economic repair. An industry grew up supplying new bodies and chassis to take the components from these cars and convert them into new vehicles, particularly into sports cars. Fiber reinforced plastic (aka "GRP," or "fiberglass") was coming into general use and made limited-scale production of automobile body components much more economical. Also, in the UK up to the mid-1970s, kit cars were sometimes normal production vehicles that were partially assembled as this avoided the imposition of purchase tax as the kits were assessed as components and not vehicles.