Auto Dealer BondsMichiganMotor Vehicle Dealers - Used Vehicles Only

Motor Vehicle Dealers - Used Vehicles Only

Required for used vehicle dealers in Michigan to obtain and maintain their dealer license from the Michigan Department of State.

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Bond amount$25,000
Term1 year
StateMichigan

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About This Bond

The Uniform Vehicle Dealer Surety Bond is a regulatory requirement for used vehicle dealers operating in Michigan. This bond ensures compliance with state laws and regulations governing the sale of used motor vehicles.

Used vehicle dealers in Michigan must obtain this bond as part of their licensing requirements with the Michigan Department of State. The bond applies specifically to dealers who sell used vehicles only, not new vehicle franchises.

This bond protects the State of Michigan and consumers from financial losses that may result from the dealer's failure to comply with applicable laws, regulations, or contractual obligations. It provides recourse for damages caused by fraudulent practices, failure to transfer titles properly, or other violations of dealer licensing requirements.

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

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FAQ

Michigan Auto Dealer Bond Questions

The cost of a Michigan auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.

Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.

Requirements vary by license type, but most Michigan auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.

Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Michigan license instructions.

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