This bond is required for businesses that dismantle vehicles for parts resale, sell scrapped vehicle components, or process scrap metal from vehicles in Illinois. It ensures compliance with state laws, proper payment of taxes, accurate titling, and protects consumers against fraudulent practices by automotive recycler…
Overview
What it is.
This bond is required for businesses that dismantle vehicles for parts resale, sell scrapped vehicle components, or process scrap metal from vehicles in Illinois. It ensures compliance with state laws, proper payment of taxes, accurate titling, and protects consumers against fraudulent practices by automotive recycler…
Who usually needs it
Businesses engaged in dismantling vehicles for parts resale, selling used or scrapped vehicle components, or processing hulks/scrap metal from 5 or more vehicles annually. This includes automotive recyclers, auto dismantlers, scrap vehicle parts dealers, and scrap processors operating in Illinois.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$20,000ObligeeIllinois Secretary of StateBond classLicense BondCategoryMotor VehicleBondIllinois Automotive Recycler / Dismantler BondPlain descriptionThis bond is required for businesses that dismantle vehicles for parts resale, sell scrapped vehicle components, or process scrap metal from vehicles in Illinois. It ensures compliance with state laws, proper payment of…Who needs this bondBusinesses engaged in dismantling vehicles for parts resale, selling used or scrapped vehicle components, or processing hulks/scrap metal from 5 or more vehicles annually. This includes automotive recyclers, auto disman…
FAQ
Common questions.
What is the bond amount for Illinois automotive recyclers and dismantlers?
Illinois requires a $20,000 surety bond per licensed location for automotive recyclers, auto dismantlers, and scrap vehicle parts dealers under 625 ILCS 5/4-201 to 5/4-205. This bond can be satisfied with a surety bond, irrevocable letter of credit, or certificate of deposit, and must be maintained annually as long as the business operates.
Who needs the Illinois Automotive Recycler / Dismantler Bond?
This bond is required for businesses that dismantle vehicles for parts resale, sell scrapped vehicle components, or process scrap metal from 5 or more vehicles annually. This includes automotive recyclers, auto dismantlers, scrap vehicle parts dealers, and scrap processors operating in Illinois who must obtain licensing from the Illinois Secretary of State.
What are the main requirements to get licensed as an Illinois automotive recycler or dismantler?
To obtain an Illinois automotive recycler/dismantler license, you must: submit Form VSD 324 to the Illinois Secretary of State, provide a $20,000 surety bond, obtain garage liability insurance ($100K/$300K/$50K minimum), show proof of an established business location with proper zoning, complete an 8-hour training certificate, obtain an Illinois sales tax number, pay licensing fees (approximately $1,000 initial), and pass an inspection for secure vehicle/parts storage with required fencing and 5-year record retention capability.
