Lansing Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $200
- Who Needs it: All secondhand dealers operating in Lansing, Michigan
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in Lansing: The Lansing City Clerk’s Office
Background
Lansing Code of Ordinance 856.02 requires all secondhand dealers operating in the city to obtain a license from the City Clerk’s Office. The Lansing City Council enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a $200 surety bond to be eligible for licensure.
What is the Purpose of the Lansing Secondhand Dealer Bond?
Lansing requires secondhand dealers to purchase a surety bond as part of the application process to obtain a secondhand dealer license. The bond protects the public from financial harm if the secondhand dealer fails to comply with the regulations set forth in Lansing Code of Ordinance 856.03. Specifically, the bond protects the public if the secondhand dealer engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Lansing Secondhand Dealer Surety Bond?
BondExchange makes obtaining a Lansing Secondhand Dealer surety bond easy. Simply login to your account and use our keyword search to find the “Secondhand Dealer” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Lansing Secondhand Dealer Bond?
No, a credit check is not required for the Lansing Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers in the city regardless of their credit history.
How Much Does the Lansing Secondhand Dealer Bond Cost?
The Lansing Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Lansing requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a secondhand dealer license. To paraphrase Lansing Code of Ordinance 856.01, a secondhand dealer is a person who purchases or collects personal property of any type from a person who is not a wholesaler, for the purpose of reselling or exchanging the property.
Exemptions to this definition include:
- Retailers purchasing goods at wholesale from manufacturers
- Dealers selling motor vehicles, old rags, waste paper, books, magazines, tapestries, antiques, or household furniture
- Secondhand or used tires when the dealer removes the tires from a vehicle in front of the buyer
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Secondhand Dealers Apply for a License in Lansing?
Secondhand dealers in Lansing must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Lansing Secondhand Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $200 surety bond.
Step 2 – Complete the Application
Secondhand dealers are required to submit their completed application online here, by appointment in-person, or by mail to the following address:
Lansing City Clerk’s Office
124 W. Michigan Ave.
Lansing, MI 48933-1695
Dealers must complete the application in its entirety, and submit a $250 licensing fee along with a surety bond. Applicants have the option of paying online, by appointment in-person, or by mail via check or money order.
How do Lansing Secondhand Dealers Renew Their Licenses?
Secondhand dealers should contact the City Clerk’s Office to obtain a renewal application. All Lansing Secondhand Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Lansing Secondhand Dealers?
Lansing does not require secondhand dealers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Secondhand dealers must purchase and maintain a $200 surety bond.
How Do Lansing Secondhand Dealers File Their Bonds?
Secondhand dealers should file their completed bond forms, including the power of attorney, when submitting their license application online or by mail at the following address:
Lansing City Clerk’s Office
124 W. Michigan Ave.
Lansing, MI 48933-1695
The bond requires signatures from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Lansing Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, secondhand dealers in Lansing must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Secondhand Dealers in Lansing?
Lansing does not require secondhand dealers to purchase liability insurance. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Lansing Secondhand Dealer Customers?
Lansing unfortunately does not provide a public database of active secondhand dealers in the city. We suggest contacting the city’s Business Licensing Division for this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.