When a vehicle is damaged beyond repair, its parts may be salvaged and reused. Businesses that dismantle wrecked cars and resell their parts in Georgia must post a surety bond that ensures they will operate in accordance with the law. For instance, used auto parts dealers have access to car license plates, titles, and certain chemicals that must be discarded properly and in an environmentally safe manner. As such, the Georgia Used Motor Vehicle Parts Dealer / Dismantler Bond is required as a licensing requirement for the used motor vehicle parts dealer license.
This bond allows the public to recover damages in the instance that a licensed dismantler or vehicle parts dealer operates against the regulations of their license. If an individual is injured by a fraudulent act committed by the dismantler or dealer, the injured party can file a claim against the bond. When the surety investigates the claim and finds it valid, they will compensate the injured party up to the bond amount. The licensed dealer or dismantler is then responsible for reimbursing the surety for the claim plus any additional fees and expenses incurred.
According to Georgia Code § 43-47, any person or corporation with a recognized place of business in Georgia that participates in buying, selling, or using motor vehicle parts is required to get a surety bond. This includes used motor vehicle parts dealers, motor vehicle dismantlers, motor vehicle re-builder, salvage pool dealers, or salvage dealers.
The Used Motor Vehicle Parts Dealer Bond has a required bond amount of $10,000. It also has a unique expiration date of December 31st of odd-numbered years (e.g., 2023, 2025, 2027, etc.).
If you’ve wound up here, but you operate as a used motor vehicle dealer that sells cars in their entirety, you’ll need an entirely different bond with a $35,000 bond amount.
The cost of this bond is based primarily on the applicant’s credit score. When you apply, the surety company will analyze your credit to determine your premium rate. Your premium rate is a percentage that will calculate your premium when it is multiplied by the bond amount. For those with excellent credit, your premium rate could be as low as 1% to 3%.
The obligee for this bond is the Georgia State Board of Registration of Used Motor Vehicle Dealers & Used Motor Vehicle Parts Dealers, Used Motor Vehicle Parts Dealers Division. Their contact information is below:
Used Motor Vehicle Parts Dealers Division
237 Coliseum Dr.,
Macon, GA 31217
Contact via email
We make surety bonding quick and easy. Apply for your bond with EZ Surety Bonds today, and you’ll hear back from us with your free quote within 24 hours. If you still have questions, please reach out to our surety experts at email@example.com or call us at 1-866-546-4605.
How do I get a Used Motor Vehicle Parts Dealer License?
To obtain your Used Motor Vehicle Parts Dealer License in Georgia, you must:
What is a Used Motor Vehicle Parts Dealer?
As defined by the Georgia Code § 43-47-2(18) , a used motor vehicle parts dealer, also called a used parts dealer, is “any person, partnership, limited liability company, firm, or corporation buying, selling, or using motor vehicle parts, either as a used motor vehicle parts dealer, a motor vehicle dismantler, a motor vehicle rebuilder, a salvage pool dealer, or a salvage dealer.”
I have my Georgia Auto Parts Dealer Bond—now what?
Once you’ve purchased your surety bond, we will mail the original bond to you. Most obligees require you to file the original bond with them. When you receive your bond in the mail, you may need to sign it prior to shipping it to the Georgia State Board of Registration of Used Motor Vehicle Parts Dealers. However, always double-check your obligee’s filing requirements before shipping your bond out.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.