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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 vehicles in Illinois. It ensures compliance with state laws, proper payment of taxes, accurate titling, and protects consumers against fraudulent practices by automotive recycler…

Bond amount$20,000
State or jurisdictionIllinois
ObligeeIllinois Secretary of State

Essential point: Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.

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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 depending on the specific bond type, state program, or underwriting requirements.

Your quote determines the actual premium.

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Timing can change when underwriting needs more information.
Application details

How it works.

  1. Start the application

    Confirm the bond and provide applicant and business details.

  2. Review the quote

    See the terms and premium before deciding to continue.

  3. Pay and sign

    Complete the required payment and signatures.

  4. Receive the bond

    Get the issued bond and filing or delivery instructions.

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Frequently asked

Common questions.

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 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.

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.

Next step

Ready to move forward?

Start the secure application with this bond already selected, or ask Ava a question before you begin.

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