License & Permit
Vehicle Wholesaler and Dismantler Bond
This bond is required of vehicle wholesale auctions and automotive dismantlers or parts recyclers before the state will license them.
- Required by
- State motor vehicle licensing agencies (Alabama Department of Revenue)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises that the licensee will follow state motor vehicle, title, and sales tax laws. In Alabama it runs to the Department of Revenue. Claims arise when someone suffers a loss from a violation, such as title fraud, after obtaining a judgment.
Who needs it
- Licensed wholesale vehicle auctions
- Automotive dismantlers and parts recyclers
- Salvage and rebuild businesses, depending on the state
What the underwriter looks at
- Owner credit
- Years in business
- Prior license discipline
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the Alabama bond?
Alabama Administrative Code 810-5-12-.02 applies a $50,000 continuing bond to dealers, dismantlers and parts recyclers, wholesale auctions, designated agents, and title service providers.
What happens if my bond is cancelled?
In Alabama, if the surety cancels and you do not file a replacement before the cancellation date, your license is revoked immediately and a new bond is needed to reinstate it.