How to Get a Vehicle Dealer License in Michigan
This guide is for informational purposes only. SuretyBonds.com does not regulate or manage vehicle dealer licenses in Michigan. Contact the Michigan Department of State: Business Licensing Section for the latest official requirements.
How to Become a Vehicle Dealer in Michigan
In Michigan, a vehicle dealer refers to any business or individual that brokers, leases, or deals five or more vehicles at once.
Dealers working with one or more of the vehicle types below must get licensed:
- Motor vehicles
- Trailer coaches
- Trailers weighing over 2,500 lbs
Use this guide to learn about the license process and requirements.
How Do I Get a Vehicle Dealer License in Michigan?
Apply for your vehicle dealer license by following the four steps below. Once submitted, it typically takes 30 days for your application to get approved.
Step 1: Choose your license classification
Your required license type and application will vary depending on the type of vehicle or business in which your dealership engages.
The license classifications are:
- New Vehicle Dealer (A)
- Used Vehicle Dealer (B)
- Used Vehicle Parts Dealer (C)
- Broker (D)
- Wholesaler (W)
Step 2: Establish a place of business
Set up a business location that meets Michigan Vehicle Code requirements. You’ll need to permanently keep all books and records at this address.
Class A and B (new and used) dealers also need to meet these requirements:
- Permanent, enclosed structure
- Working office materials
- Space to display at least 10 vehicles
- Space for customer parking
- Onsite repair capability or a written agreement with a repair site within 10 miles
You’ll need to pass a zoning inspection and get your municipal forms signed before receiving a dealer license.
Step 3: Buy a surety bond (if applicable)
New and used dealers and vehicle brokers are required to purchase a $25,000 bond. Your bond and application forms must have identical information. Double check names and spelling before filing.
Ensure that the bond is active when you submit your application, even if your license is issued at a later date.
Step 4: Gather all documents and apply
The required application materials vary depending on the type of license classification you’re applying for.
Generally, the supporting documents include:
- Registration application
- Zoning and municipal forms
- Dealer selection form (used and new)
- Business creation document
- Franchise agreement (new dealers only)
- Fleet insurance (used and new)
- Surety bond form (used, new, and brokers)
Follow the application packet to ensure that you include all required information for your specific license classification.
How Long Does It Take to Get a License?
Michigan motor vehicle license applications can take up to 30 days for processing and approval.
The dealer application process can be complex because of its various requirements. If you forget to submit or fill out certain parts of the application, your processing and approval will be delayed.
How Much Does It Cost to Get a Vehicle Dealer License?
All dealers have to pay the $160 application fee. New and used dealers as well as brokers will also pay a premium for their $25,000 surety bond. The premium rate is typically $250, but can vary depending on credit score.
Do I Need to Complete Pre-License Training?
Only used car dealer applicants need to complete pre–license training. Attend a training course within the six month period before you submit the application.
Visit the Michigan Department of State website to see the training schedule.
Do I Need to Include Zoning and Municipality Forms in My Application?
Yes, completed zoning and municipality forms need to be included in your application, but they do not need to be signed upon submission.
After applying, you will have 90 days to get the forms signed and approved. Send your forms to the The Department of Buildings and Safety Engineering Zoning Division for approval.
How to Renew Your Vehicle Dealer License
Michigan dealer licenses must be renewed before December 31 each year. All renewal applications must be completed through the state’s e-services portal.
Dealers do not need to renew their bond at the same time as their license, but you are required to have an active bond at all times.
The late renewal period is open for 30 days after December 31. If you apply for renewal after the expiration date you’ll pay a late fee that is 50% of the renewal fee.
If your license expires for more than 30 days, you’ll have to apply for a brand new license. Additionally, your renewal will be denied if you haven’t bought or sold at least 5 vehicles in the last 12 months.
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Last Updated: September 24, 2025
