Michigan Vehicle Dealer Bond

A Michigan Vehicle Dealer Bond, or Uniform Vehicle Dealer Surety Bond is a type of surety bond  required by the Michigan Department of State (MDOS) for all licensed vehicle dealers. It’s designed to protect consumers and the state from financial losses caused by fraudulent or illegal activities by the dealership. The bond amount is $25,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Michigan Vehicle Dealer Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Michigan Vehicle Dealer Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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What is Considered a Vehicle Dealer in Michigan?

Selling a limited number of personal vehicles (typically five or fewer per year) does not require a license and Uniform Vehicle Dealer Surety Bond. However, it’s essential to consult with the Michigan Department of State (MDOS) for specific guidance on your situation.

In Michigan, any person, partnership, or corporation engaged in the business of buying, selling, brokering, or dealing in vehicles of a type required to be titled under the Michigan Vehicle Code must be licensed by the state. One license requirement is a Michigan Vehicle Dealer Bond.

Types of Vehicle Dealers in Michigan

Michigan offers several types of dealer licenses, each with specific requirements:

• Class A – New Vehicle Dealer: Buys and sells new vehicles under a franchise agreement or contract with the manufacturer.
• Class B – Used Vehicle Dealer: Buys and sells used vehicles.
• Class C – Used Vehicle Parts Dealer: Acquires late model major component parts for resale.
• Class D – Broker: Brings buyers and sellers together for a fee without owning the vehicle.
• Class E – Distressed Vehicle Transporter: Buys, transports, and sells vehicles to parts dealers, scrap metal processors, or automotive recyclers. (Must be licensed but no bond requirement)
• Class F – Vehicle Scrap Metal Processor: Processes vehicles into scrap metal. (Must be licensed but no bond requirement)
• Class G – Vehicle Salvage Pool: Stores and displays damaged or distressed vehicles for insurance companies.
• Class H – Foreign Salvage Vehicle Dealer: Licensed in another state and deals in salvage vehicles or parts in Michigan.
• Class R – Automotive Recycler: Recycles vehicles and sells parts. (Must be licensed but no bond requirement)

Key Factors Determining Dealer Status

To be considered a vehicle dealer in Michigan, you generally need to:

• Engage in vehicle-related business: Buying, selling, brokering, or dealing in vehicles.
• Meet specific licensing requirements: Obtain the appropriate dealer license based on your business activities.
• Comply with state regulations: Adhere to Michigan’s vehicle dealer laws and regulations.
• Maintain a Michigan Vehicle Dealer Bond

Important Note:

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.