Alabama requires a $50,000 continuous surety bond before it licenses an automotive dismantler and parts recycler, under Code of Ala. § 40-12-398. Ours is $1,500 flat — 3% of the bond amount, identical for every licensee. One soft credit pull, e-signed in 1–2 business days.
















Your dismantler license is waiting on this bond. Here's the entire process — no broker phone tag:
Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.
Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.
Pay online and receive the executed bond (Department form MVT 4-3) ready to submit with your dismantler license transmittal. Wet-ink originals mailed whenever the state insists.
$50,000 bond × 3% = $1,500, one-time per term. Fixed amount, fixed price, multi-year if you want it.
Alabama treats anyone who keeps ten or more inoperable vehicles for more than thirty days as engaging in the business of an automotive dismantler and parts recycler, and licenses them through the Department of Revenue, Motor Vehicle Division. Code of Ala. § 40-12-398 conditions that license on a $50,000 continuous surety bond.
The bond is a compliance-and-public-protection guarantee: it stands behind your handling of titles, vehicle identification, and the tax and title laws governing dismantled vehicles and recycled parts. Applicants also need an active NMVTIS registration before licensing.
It is not insurance for you — if the surety pays a claim, you repay the surety. The carrier can be released 60 days after filing written notice with the Department, so the bond is written to stay continuous while your license is active. Dismantlers who keep clean title records treat it as a license formality.
These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
$1,500 flat, five-minute application, e-signed bond in 1–2 business days. Free until issued.