Motor Vehicle Dealers - New or New and Used Vehicles

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

Who Needs This Bond: Motor vehicle dealers in Michigan who sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements. This includes franchised new car dealers, independent dealers selling new vehicles, and mixed inventory dealers.

Protection Provided: The bond protects both the State of Michigan and consumers from financial losses resulting from the dealer's failure to comply with licensing laws, fraudulent practices, or violations of dealer regulations. If a dealer engages in prohibited activities or fails to meet their legal obligations, claims can be made against the bond to compensate affected parties.

Bond Details: The bond requires a $25,000 coverage amount and has a one-year term. The bond is renewable annually and must remain active throughout the dealer's licensing period to maintain compliance with Michigan Department of State requirements.