Motor Vehicle Dealers - Used Vehicles Only

The Uniform Vehicle Dealer Surety Bond is a state-mandated financial guarantee required for used vehicle dealers operating in Michigan. This bond serves as protection for the State of Michigan and consumers against potential violations of motor vehicle dealer regulations and fraudulent business practices.

Who Needs This Bond: All used vehicle dealers in Michigan must obtain this surety bond as part of their licensing requirements with the State of Michigan. This includes independent used car lots, dealerships specializing in pre-owned vehicles, and other businesses engaged in the retail sale of used motor vehicles.

Protection and Coverage: The bond provides $25,000 in coverage and protects consumers who may suffer financial losses due to the dealer's failure to comply with Michigan motor vehicle laws, fraudulent sales practices, or other violations of their licensing agreement. It ensures that funds are available to compensate damaged parties and encourages dealers to operate ethically and in accordance with state regulations.

Term and Renewal: This bond has a one-year term and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active and remain in compliance with Michigan state requirements.