Motor Vehicle Dealers - New or New and Used Vehicles

The Uniform Vehicle Dealer Surety Bond is a financial guarantee required by the State of Michigan for businesses engaged in the sale of new motor vehicles or both new and used motor vehicles. This bond ensures compliance with state licensing laws and dealer regulations.

Motor vehicle dealers who sell new vehicles or operate as combined new and used vehicle dealers must obtain this bond as part of their licensing requirements. The bond serves as protection for both the State of Michigan and consumers who purchase vehicles from licensed dealers.

The bond protects against financial losses resulting from the dealer's failure to comply with Michigan vehicle dealer laws, including issues such as improper handling of titles, failure to deliver vehicles as promised, or other violations of dealer licensing requirements. If a dealer fails to meet their legal obligations, claims can be made against the bond to compensate affected parties.

This bond requires a $25,000 coverage amount and has a one-year term. The bond is renewable annually, and dealers must maintain continuous coverage to keep their license in good standing with the State of Michigan.