Michigan Dealer in Used Auto Parts Only Bonds
Fast Approval at the Lowest Rates
If you want to legally operate as a dealer in used auto parts in Michigan, you may be required to obtain a Michigan Used Auto Parts Dealer Bond as part of your licensing process. Propeller Bonds makes it fast, simple, and affordable. Get approved in minutes for a low annual premium and receive your bond the same day.
A-rated carriers
Instant approvals
Thousands of bonds issued
Auto Dealer Bonds
Ensures compliance with local contractor regulations for construction businesses.
$100/year
Coverage Up to $1000
Term 1 Year
Approval Time 24-48 hours
Bond Overview, Eligibility & Costs
Explore what the bond covers, who is required to carry it, and how much you can expect to pay.
What Is the Bond?
A Michigan Used Auto Parts Dealer Bond is a type of surety bond required by the state or licensing authority. It ensures that used auto parts dealers operate honestly, comply with state regulations, and properly handle vehicle parts transactions while protecting customers and the public from fraud or misconduct.
The bond creates a legal guarantee between three parties:
- Principal – You, the used auto parts dealer purchasing the bond
- Obligee – Michigan – City of Detroit – Consumer Affairs Dept – Business License Center
- Surety – Propeller Bonds
Who Needs It?
In Michigan, individuals or businesses dealing exclusively in used auto parts must obtain this bond before they can be licensed or operate legally.
This bond is typically required for:
- Used auto parts dealers selling components and salvaged parts
- Auto recyclers and salvage yards managing used inventory
- Businesses applying for or renewing a Michigan used vehicle parts dealer license
Michigan Dealer in Used Auto Parts Only Bond Requirements
Michigan Dealer in Used Auto Parts Only Bond Requirements
In Michigan, used auto parts dealers are required to obtain a surety bond as part of the licensing process. This bond ensures compliance with state motor vehicle laws and protects consumers from fraudulent sales, misrepresentation, or improper business practices.
Michigan Used Auto Parts Dealer Bond Basics:
- Required by the State of Michigan for specialized dealer licenses
- Applies to dealers and recyclers of used motor vehicle parts
- Bond amount set by state regulatory agencies
- Must remain active for the duration of the license period
- Protects the public and government from regulatory violations
How Much Does a Michigan Dealer in Used Auto Parts Only Bond Cost?
The cost of a Michigan Used Auto Parts Dealer Bond depends on the bond amount required by the licensing authority. Requirements may vary based on business type and license classification.
Here’s a general breakdown:
- Bond amount: Typically $10,000 – $25,000 (varies by state requirement)
- Premium: Starts as low as $100 annually (for qualified applicants)
- Term: Usually issued for one year and renewable annually
Once issued, your bond can be submitted with your license application so you can legally operate as a used auto parts dealer in Michigan.
Frequently Asked Questions
Yes, in most cases the bond must be filed before your license can be issued or activated.
No. The bond amount is the full coverage required by the state (for example, $25,000). You only pay a small annual premium.
Your credit history, business experience, and the required bond amount all affect your premium rate.
Yes. Many applicants with lower credit scores still qualify, though pricing may be higher.
Most bonds are issued the same day or within 24 hours after approval.
Yes. These bonds are typically issued on a one-year term and must be renewed annually.
Yes, for those specifically licensed as used auto parts or salvage dealers, though requirements may vary slightly.
Your license may become inactive, and you may not legally operate until the bond is renewed.
No. It protects consumers and the state—not your business directly.
No. A bond protects others from your business actions, while insurance protects your business from certain risks.
No. Bonds are issued to a specific legal entity and cannot be transferred.
If a valid claim is approved, the surety may pay damages up to the bond amount, and you would be responsible for reimbursing the surety for any payout.
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Dealer in Used Auto Parts Only Bond?
Join thousands of dealers who trust Propeller Bonds for fast approvals and low rates. Get your Dealer in Used Auto Parts Only bond today.
Testimonials
As a business owner who needed help, the staff at Propeller Bonds, made it easy to get the bond we needed. When looking for a bond company, we didn't know who to trust. Not only is Propeller Bonds trustworthy, but fast and efficient. They got our business back on track in no time.
Thank you! Love doing business with you guys. Awesome response, quick response, answer all my questions. Just a great place to be! Don’t have many mistakes, but when I do you guys are always on it! Thank you so very much!
Simple, easy and to the point.
All bonds are fast issue!
Spectacular company, easy-to-use products, available in all 50 states and have been a great solution for every single bond I've thrown their way!
Propeller Bonds is super easy to work with and a true no-brainer. Use them!
Great product maximizing effectiveness through excellent technology.
Propeller has already made an impact! When deciding what platform (surety direct or otherwise), we automatically consider Propeller now - it is top of mind!
Your approach to issuing small commercial surety bonds online and via email is excellent and has been very well received by clients. Further, it has streamlined our work in that space, freeing up capacity for our larger and complex cases.
I love the ease of the system - that I can issue bonds on behalf of the client or send them a link and have them do it. I love that you have thousands of bonds in your database. I feel comfortable talking to a client across the country because you probably have the bond form that they need.
I can say working with Propeller Bonds and their entire team has been a great experience for us and our clients. From litigation to construction and everything in between, they are easy and effective!
This is what swinging at solutions vs. swinging at nails looks like.
The Propeller quote system is so easy to use & I was able to issue one already at a much better price than the current surety I also use. This will be a great option for my Agency for bonds!
You are doing a magnificent job!
Representatives were very helpful when I needed to make changes to my certificate!
The ability to update/amend a bond without having to ask Underwriting is great! Also the ability to have a portal to see all bond purchases and their expiration dates, etc.
Responsiveness of the team when we have questions is fantastic!
Everything has been excellent! Hope you can maintain your level of service, in consideration of your impressive growth. We’re pulling for you!
Thank you. That was a piece of cake! ☺️
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