If you wish to sell more than 5 vehicles in a 12-month period in the state of Michigan, you will need to have a Michigan Dealer License.
You are legally allowed to sell less than 5 vehicles a year if those vehicles are titled in your name and used primarily for personal, family, or household use. If you will need to get a dealer license if you wish to flip vehicles for a profit.
Not sure if you need a dealer license? Check out this post on selling cars without a license.
How to get a Michigan Car Dealer License
Step #1: Determine What License Class You Fall Into
The most common license types are below:
- Class A: New Vehicle Dealer – sells new vehicles
- Class B: Used Vehicle Dealer – sells used vehicles
- Class W: Wholesaler – buys and sells vehicles to other licensed dealers
View the full list of Michigan Dealer Licenses.
Step #2: Complete Michican Car Dealer License Application
Your application packet will include the following:
All of these forms need to be completed and signed.
Step #3: Schedule a Fingerprint Appointment
Every individual listed as an owner, partner, corporate officer, or director must be fingerprinted before you can get your Michigan Car Dealer License. Fingerprints are taken by appointment only. To schedule an appointment you must:
- Visit www.michigan.gov/msp
- Click on the “Criminal History Records” tab on the right
- Click “For employment/licensing” and follow the instructions
Worried about a previous felony on your record? Check out this post on “How to get a Dealer License with a Felony”
Step #4: Get a Sales Tax Number
Most Michigan businesses are required to have a sales tax number.
You can get a sales tax number by contacting the Michigan Department of Treasury at 517-636-4660.
Step #5: Purchase Michigan Motor Vehicle Dealer Bond
Not sure how to get an Auto Dealer Bond? Use this interactive tool to help you out.
The bond amount is set at $10,000.
The price you pay will be somewhere between 1-15% of the bond amount ($100 – $1,500).
This is a one time payment, not monthly.
The best way to see what you would pay is to get a free quote:
Step #6: Submit
Send your application package and original bond to the Michigan Department of State at the address below:
Michigan Department of State
Bureau of Regulatory Services
Business Licensing and Regulation Division
Lansing, MI 48918
Include a check or money order payable to “State of Michigan” for license and plate fees. Fees are different for each class.
Licensing fees for all classes (except C, H, and R) are $75. For classes C, H, and R the licensing fees are $160.
Dealer plates cost $10 each. A minimum of 2 dealer plates is required for your business.
Step #7: Wait to be Approved
Allow at least 30 days for processing. Proper completion of all the necessary forms will ensure you won’t face any delays in your processing.
Class B and W licenses (used car dealers and wholesale dealers) will need to have their business location inspected before being issued a license.
Upon approval of your paperwork, you will be mailed your Michigan Motor Vehicle Dealer License.
License Expiration and Renewal
Do you know when your motor vehicle dealer license expires? Check out this awesome infographic.
Michigan Motor Vehicle Dealer Licenses are valid for one year and expire on December 31st. You must renew your license before December 31st to be able to stay in business.