Michigan Junk Dealer Bonds
Fast Approval at the Lowest Rates
If you want to operate as a Junk Dealer in Michigan—especially within Detroit—you must obtain a business license before buying or storing scrap. In Detroit, a Junk Dealer Bond is required as part of the process. Propeller Bonds makes it fast, simple, and affordable.
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 $2000
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?
In Michigan, junk dealing and scrap operations are regulated at the local level. Within Detroit, licensing is handled by the City of Detroit. The City requires a $2,000 surety bond to ensure dealers operate legally and do not engage in the unlawful trade of stolen materials.
The bond creates a legal guarantee between three parties:
- Principal – You, the junk dealer
- Obligee – Michigan – City of Detroit – Consumer Affairs Dept – Business License Center
- Surety – Propeller Bonds
Who Needs It?
This applies to individuals and businesses operating scrap or junk facilities in Detroit, Michigan.
This typically includes:
- Scrap Yard Operators buying and reselling discarded metals
- Secondhand Dealers storing large quantities of recyclable materials
- Any professional seeking a Detroit Junk Dealer License
Michigan Junk Dealer Bond Requirements
Michigan Junk Dealer Bond Requirements
Junk dealers are regulated to prevent the sale of stolen goods and ensure proper recordkeeping. Bonding ensures that authorities like the Consumer Affairs Dept are protected if a dealer violates city codes.
Michigan Junk Dealer Bond Basics:
- Register for a Junk Dealer license through the Detroit Consumer Affairs Department
- Maintain a physical, licensed business location within city limits
- Post a Junk Dealer bond to maintain active licensing status
- Verify and record identification for all sellers during scrap transactions
- Protects the city from financial harm due to illegal scrap transactions or non-compliance
How Much Does a Michigan Junk Dealer Bond Cost?
The cost of a Michigan Junk Dealer Bond for Detroit is a flat annual premium for most qualified applicants.
Here’s a general breakdown:
- Bond amount: $2,000 (City of Detroit requirement)
- Premium: Typically $100 annually
- Term: Usually issued for one year and renewable annually
Frequently Asked Questions
Not statewide, but the City of Detroit requires a specific business license for anyone buying, selling, or storing scrap and discarded materials.
The Detroit Consumer Affairs Department, via the Business License Center, provides the regulatory oversight for all local junk dealers.
Yes. In Detroit, a $2,000 surety bond is a mandatory requirement for the issuance or renewal of a Junk Dealer license.
It ensures the dealer complies with all city ordinances, prevents the unlawful trade of stolen goods, and provides financial recourse for fraudulent activity.
A collector is typically a mobile operator gathering scrap, whereas a dealer operates from a fixed, permanent business location or scrap yard.
Yes. Detroit city ordinances and Michigan state law require dealers to maintain strict records of all scrap purchases, including seller identification.
No. Operating a junk or scrap facility in Detroit without a license can lead to heavy fines, vehicle/material impoundment, or forced closure.
Yes. Because the Detroit Junk Dealer bond amount is small ($2,000), most applicants qualify instantly at a flat rate regardless of credit history.
Most bonds are issued the same day or within 24 hours of your online application.
No. Insurance protects your business assets from liability; the bond is a financial guarantee required by the city to protect the public.
Yes. While Detroit requires a $2,000 bond, other Michigan cities may have different bond amounts, licensing rules, or zoning restrictions.
If a valid claim is approved, the surety may pay damages up to the bond amount, and you must reimburse the surety for every dollar paid out.
Ready to Get Your Michigan
Junk Dealer Bond?
Join thousands of dealers who trust Propeller Bonds for fast approvals and low rates. Get your Junk Dealer 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! ☺️
Follow Us
Don't miss Propeller updates & News
