How much will my $10,000 car dealer bond cost in Michigan?
The Michigan Department of Motor Vehicles requires that uniform vehicle dealers obtain a surety bond. While the price can seem scary, you can qualify for a rate as low as 1-3% depending on your qualifications. This will be determined in the underwriting process that this particular bond is subject to.
Think you might be subject to higher rates? Let the experts at SuretyBonds.com try and find the lowest rate to get you the surety bond you need. Give us a call at 1 (800) 308-4358 or submit a bond request to get bonded!
|Bond Type||Bond Amount||Cost by Credit Score*|
|680 and up||679 - 600||599 or lower|
|Vehicle Dealer Bond||$10,000||Starts at $100||$100-750||$750+||Apply Now|
If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form. You’ll receive your free, no-obligation bond quote within 1 business day of submitting your application.
Why do I need this bond?
Michigan auto dealer surety bonds guarantee that the principal (vehicle dealer) will not sell any vehicles that they know to be faulty, conduct business at a non-licensed location or engage in any fraudulent, unethical or unlawful practices. Uniform vehicle dealer surety bonds also make certain that dealerships pay the state for any and all owed taxes or other related fees.
This bond does not allow Michigan vehicle dealers to acquire late model vehicles or salvageable parts through a salvage pool, or broker without first obtaining a salvage vehicle agent license. The Secretary of State will investigate any and all alleged cases of persons conducting business as a salvage vehicle agent without a license.
Still have questions about your surety bond needs? Don’t worry, our experts have an unparalleled knowledge of surety bonds and are here to answer all of your questions. Give us a call today at 1 (800) 308-4358 or submit a bond request to get a free, personalized quote on a Michigan auto dealer bond.
What’s the fine print?
Michigan uniform vehicle dealer surety bonds are continuous until canceled. In the event of cancellation, the surety must give the state at least 30 days’ notice.
Individual owners and partners must be listed on the bond form in addition to the business name and address. Corporate officers do not need to be listed for a corporation, but the corporate name (or DBA, if applicable) must appear on the bond form.
How to become a motor vehicle dealer in Michigan
The following information must be included on the application to become an auto dealer in Michigan:
- a completed zoning approval form for all license classifications being applied for
- a completed municipality approval form for all license classifications being applied for
- a copy of the business creation document or assumed name filing
- one copy of the signed receipt as proof of fingerprinting for each applicant
- franchise agreement(as) for Class A dealers
- a certificate of insurance for workers’ compensation insurance or a notice of exclusion form (Class C or Class R dealers only)
- a repair facility registration application or an agreement with a registered repair facility (Class A and B dealers only)
- a certificate of insurance for fleet-type Michigan no-fault insurance (Class A, B and W dealers only)
- a check or money order payable to State of Michigan for the license and plate fees
- a completed vehicle dealer surety bond (Class A, B and D dealers only)
- and more
Applicants should allow at least 30 days for processing.
Submit a bond request to begin the bonding process.
Ready to get started?