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Michigan Vehicle Dealer Bond

Price Varies / 1 year term


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What is the cost of an auto dealer bond in Michigan?

Michigan auto dealer bond costs start at $225 for the state-required 1-year term. Your exact premium will be provided after a quick application review. Apply now to get your free, personal uniform vehicle dealer bond quote! 

How do you get a Michigan auto dealer bond?

You can apply for your Michigan auto dealer bond online 24/7. You'll need to provide the following information for Department of State approval.

  • dealership name
  • dealership address
  • license type (used vehicle dealer or new vehicle dealer)
  • dealer license number, if available

Once your order has been processed, you'll receive your official Michigan surety bond documentation by email.

How fast can I get a vehicle dealer surety bond?

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your official Michigan auto dealer bond faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed bond delivery.

If you have questions about Michigan uniform vehicle dealer bonds or your application, call 1(800)308-4358 to speak with a friendly surety expert. We're here to guide you through the dealer bond process so you can get back to running your business.

Bond Type
$25,000Vehicle Dealer Bond

What is a Michigan vehicle dealer bond?

Michigan Vehicle Code Section 257.248 requires individuals file a $25,000 surety bond as part of the licensed dealer registration process. The state-required bond form is officially titled the "Michigan Uniform Vehicle Dealer Surety Bond," but it's more commonly known as a "motor vehicle dealer bond" or just "auto dealer bond."

The bond form specifically requires the bonded dealership reimburse purchasers, sellers, financing agencies, and government agencies for financial losses that occur as a result of fraud, cheating, misrepresentation, or sales tax deficiency. If a judgment is made against the dealership, a claim can be filed against the bond. The surety company will pay valid claims up to the full $25,000 bond amount, which the bonded dealer must then reimburse.

Who regulates licensing for auto dealers?

The Michigan Department of State Business Licensing Section enforces motor vehicle dealer license requirements in the state. Vehicle dealer license applicants must file their $25,000 Michigan surety bond with the Department of State as part of their car dealer license application packet and are only authorized to operate as long as the bond is in effect.

Who needs a Michigan motor vehicle dealer bond?

Individuals must file a motor vehicle dealer bond with the state if they do the following within a 12-month period.

  • buy, sell, broker, lease, or deal 5 or more vehicles
  • purchase, sell, exchange, broker, or deal salvageable parts for 5 or more vehicles
  • buy 5 or more vehicles to sell as parts or keep as scrap metal

Individuals working as a dealer without a license will be investigated and prosecuted by the state.

Michigan auto dealer bonds are required for vehicle dealer licensing. If you need a bond for vehicle registration, a separate Michigan certificate of title bond is required.

How does a Michigan auto dealer bond get filed?

An applicant's original, official Michigan motor vehicle surety bond documentation must be filed with the Department of State within 30 days of issuance. The state will not accept a copy or faxed surety bond document.

Michigan Department of State
Business Licensing Section
430 West Allegan
3rd Floor
Lansing, MI 48918

What is the Michigan uniform vehicle dealer surety bond amount?

Effective January 23, 2023, the Michigan uniform dealer surety bond amount increased from $10,000 to $25,000. All new bonds filed after January 23, 2023 must be issued with the new $25,000 bond amount.

How do I update my vehicle dealer bond amount?

According to the Michigan Department of State, existing bonds on file for active licenses must be increased with a rider amendment document at their next renewal term. Licensed dealers have until December 31st, 2023, to increase their $10,000 bond amount to $25,000.

How do I update or change information on my bond form?

If the Michigan Department of State Business Licensing Section requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your bond from, email [email protected] to explain the needed change.

The most common changes for these bonds include the car dealership's name or address.

How do I renew my auto dealer surety bond?

You must renew your Michigan motor vehicle dealer bond before the current 1-year term expires. Once you pay your renewal invoice, renewal instructions will be emailed to keep your bond and license active with the state.

How do you get your Michigan motor vehicle dealer license?

Motor vehicle dealers in Michigan must submit the following required information and documentation to the Department of State after completing their training.

  • vehicle dealer license application
  • Live Scan fingerprint form
  • sales tax number
  • $25,000 uniform vehicle dealer surety bond
  • zoning and municipality approval forms
  • contractor or franchise agreement, if Class A
  • business days and hours
  • owners, partners, corporate officers, and directors
  • servicing facility requirement, if Class A or Class B
  • business location description
  • dealer plates and fleet insurance, if Class A, Class B, or Class W
  • fees
  • workers' compensation insurance, if Class C or Class R
  • applicant history
  • signatures and certification

Call 1 (800) 308-4358 to talk with a Surety Expert