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Alabama Dismantler and Parts Recycler



The Alabama Dismantler and Parts Recycler is a $25,000.00 bond. This bond is available in 1, 2, or 3 year terms.

The Automotive Dismantler and Parts Recycler Bond guarantees that the automotive dismantler (also called the principal) will follow the rules and regulations required by the state licensure code. An automotive dismantler surety bond is required when a person, firm or corporation engages in the business recycling auto parts and possess 10 or more inoperable motor vehicles for more than 30 days. Each state has it’s own definition and requirements for when a bond of this type is needed.

Ashton Agency has a 99% approval rate and offers the $10,000 automotive dismantler & auto parts recycling bond for licensed Alabama regulatory dealers at some of the most competitive rates available. Let us save you money!

Who needs the dismantler and auto recycler bond?

In the State of Alabama, dismantlers and auto parts recyclers are required to obtain a $10,000 surety bond in addition to their dealer regulatory license in order to be in compliance with section 40-12-412 et seq., Code of Alabama 1975. An automotive dismantler surety bond is required when a person, firm or corporation engages in the business recycling auto parts and possesses 10 or more inoperable motor vehicles for more than 30 days.

What is the dismantler and auto parts recycler bond?

The $10,000 dismantler and auto recyclers bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.

A licensed automotive dismantler may conduct his or her business without obtaining the following specific licenses:

  • Junk dealers license

  • Car crushers license

  • Automotive dealers license--if you conduct the wholesale business only

  • Automobile accessory dealers license

  • Automobile garage & shop license

  • Automobile storage garage or yard license

All Alabama dismantler licenses expire annually on September 30th.

The Alabama dismantler and auto parts recycler is also known as: dismantler bond, automotive dismantler bond, parts recycler bond, and auto parts recycling bond.

What else do I need to obtain or renew my license?

If you are licensed as a motor vehicle dealer, you will also be required to obtain liability insurance. The current minimums are:

  • $25,000 for death/bodily injury to one person

  • $50,000 for death or bodily injury to two or more people

  • $25,000 for damage or destruction of property of others

The insurance is often called "garage liability." Ashton is proud to offer competitive rates with some of the best A-rated insurance companies.

Ashton offers the designated agent bond in conjunction with both the $25,000 motor vehicle dealer/dealer regulatory bond and the $10,000 dismantler bond. Click on the links below or call us at (800) 451-4854 for free quotes on all your bond and insurance needs!

I have everything I need. What now?

Dismantlers and auto parts recyclers will submit the original signed bond form to the Alabama Department of Revenue's Business & License Tax Division at the following address:

Alabama Department of Revenue

Business & License Tax Division

Severance & License Section

P.O. Box 327550

Montgomery, AL 36132-7640

The Severance and License Section can be reached by phone at (334) 242-1170.

Get bonded within one business day!

Only Ashton Agency can provide you with:

  • The lowest price for your dismantler bond.

  • Quickest turnaround time.

  • The ability to meet or beat any competitor's pricing.

Many companies offer the dismantler bond, but by contacting the Ashton Agency, you can be sure you'll be getting the best price available, not to mention our stellar customer service and insider knowledge of the industry. We've been helping dealers get bonded for more than 45 years. Let us put that experience to work for you today!

Call us now at (800) 451-4854 for a free quote and we will contact you within 24 hours. We can assist you over the phone to ensure you receive your bond quickly and easily!

Don't have time to speak on the phone? Please fill out our easy online application and fax to (407) 678-2468. We can get you started right away!


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