Detroit used parts & wrecking bonds.
$100 flat.
The City of Detroit licenses dealers in used auto parts and wrecking — salvage and dismantling operations — and requires a $3,000 surety bond with the license. Ours is $100 flat, the price our carrier's rate book sets for this bond. The bond issues the moment you pay — no credit check.
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How much does a Detroit used parts & wrecking bond cost?
$100 at the $3,000 amount, the same for every applicant.
Three steps. One sitting.
Municipal license bonds are the simplest thing in surety. Here's the entire process:
Apply online
Business details and an effective date. That is the application. No credit check.
Pay & e-sign
Small fixed-amount municipal bonds like this issue right after purchase.
File with the City of Detroit
Your executed bond and power of attorney arrive by email, ready to file with the City of Detroit as part of your used-auto-parts and wrecking license. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
A used-auto-parts and wrecking dealer bond is a compliance and consumer-protection guarantee to the City of Detroit. Salvage and dismantling are tied to title, parts-tracing, and theft-prevention rules — the City wants a financial backstop that you'll keep proper records and operate within its ordinances.
It's a three-party arrangement: you (the principal), the surety carrier, and the City of Detroit (the obligee). If you violate the City's used-parts and wrecking ordinance or harm the public in connection with the licensed activity, a claim can be made against the bond up to $3,000.
The bond must stay active while you're licensed. Let it lapse and the City can suspend your dealer license — so we track it and notify you 60 and 30 days out, keeping your $3,000 filing continuous.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $3,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The bond runs to January 1 whatever day you buy; the premium covers the period to that date.
Renewal falls on the statutory date, January 1, in the year your term ends.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the City of Detroit. Your executed bond and power of attorney arrive by email, ready to file with the City of Detroit as part of your used-auto-parts and wrecking license. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $100 at the $3,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check.
Start the application →Common questions.
Other Michigan bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
License your Detroit wrecking yard today.
$100 flat, no credit check, bond often issued in the same sitting. Free until issued.