Motor Vehicle Dealers - Used Vehicles Only

The Uniform Vehicle Dealer Surety Bond is a financial guarantee required by the State of Michigan for businesses operating as used vehicle dealers. This bond ensures compliance with state regulations governing the sale of used motor vehicles and protects both consumers and the state from potential financial losses.

Who Needs This Bond: Used vehicle dealers in Michigan must obtain this bond as part of their licensing requirements. The bond is specifically required for dealers who sell used vehicles only, as opposed to new vehicle franchised dealers who may have different bonding requirements.

Protection and Coverage: The $25,000 bond protects consumers who purchase vehicles from the dealer and ensures the dealer operates in accordance with Michigan's motor vehicle dealer laws. It provides financial recourse for claims related to fraudulent practices, failure to transfer titles properly, or other violations of dealer regulations.

Term and Renewal: This bond has a one-year term and is renewable annually. The bond must remain active and in good standing for the dealer to maintain their license. This bond is eligible for instant approval, allowing qualified applicants to obtain coverage quickly to meet licensing deadlines.