Dealt with small vehicle parts for scrap (7)
I believe the answer is:
discard
'for scrap' is the definition.
(scrap can mean to discard)
'dealt with small vehicle parts' is the wordplay.
'dealt with' becomes 'did' (to do something is to deal with it).
'small' becomes 's' (abbreviation - e.g. clothes size).
'vehicle' becomes 'car' (car is a kind of vehicle).
'parts' means one lot of letters goes inside another (in the sense of cuts or separates).
's'+'car'='scar'
'did' going around 'scar' is 'DISCARD'.
(Other definitions for discard that I've seen before include "Abandon" , "Shed" , "Throw away or cast off" , "bin" , "Jettison" .)