Getting a used car dealer license in Michigan

In Michigan, used-car dealers are licensed by Michigan Department of State (Secretary of State).

Before your first retail sale you’ll need a $25,000 surety bond, a pre-licensing course and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

License
Class B used vehicle dealer michigan.gov (source, opens in a new tab)
Issued by
Michigan Department of State (Secretary of State) michigan.gov (source, opens in a new tab)
Surety bond
$25,000 vehicle dealer surety bond for Class B. michigan.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Class B applicants/partners/officers must attend pre-license training within six months before application. SOS virtual training is free; listed sessions three hours. Separate post-license training also required. michigan.gov (source, opens in a new tab)
Official fees
Class B annual fee $160; at least two dealer plates must be purchased. michigan.gov (source, opens in a new tab)
Renewal
Annual license $160; designated person completes training within 90 days of original issuance and every 24 months thereafter. michigan.gov (source, opens in a new tab)
Site inspection
Yes: Department pre-license site inspection. michigan.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a Class B license

    Michigan's Department of State issues the Class B used vehicle dealer license, for buying and selling previously titled and registered vehicles. Class A is new and franchise, W wholesale, D broker, and C and R parts and recycling. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  2. Take the pre-license training

    Every applicant, partner and officer attends pre-license training within the six months before you apply. The Secretary of State's virtual training is free; listed sessions run three hours. Missing the six-month window is a common mistake. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  3. Set up the business, site and repairs

    Prepare the entity or assumed-name documents and get zoning and municipal approval for an established place of business. You need your own registered repair facility or an agreement with one. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  4. Fingerprints, bond and insurance

    Get fingerprinted through IdentoGO, a $25,000 vehicle dealer surety bond and Michigan no-fault fleet insurance. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  5. Submit the original application

    Send the original application from the Vehicle Dealer License Application Packet with the fees: $160 a year for a Class B license. You must buy at least two dealer plates. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  6. Pass the site inspection

    The Department inspects the site before the license is approved. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  7. Do the post-license training within 90 days

    Within 90 days of getting your license, a designated person completes post-license training, then repeats it every 24 months. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

  8. Keep it current

    The license renews every year for $160. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

The location

Display lot
Established place of business required. michigan.gov (source, opens in a new tab)
Zoning and home-based lots
Zoning and municipal approval required. michigan.gov (source, opens in a new tab)

Before you apply

Entity/assumed-name documents, IdentoGO fingerprints, zoning/municipal approval, Michigan no-fault fleet insurance; own registered repair facility or agreement with one. michigan.gov (source, opens in a new tab)

Forms

Vehicle Dealer License Application Packet includes original application and supporting forms. michigan.gov (source, opens in a new tab)

Get the current versions from michigan.gov; we don’t host copies.

Not the license you’re after?

Class A new/franchise; W wholesale; D broker; C/R parts/recycling. Class B buys/sells previously titled, registered used vehicles. michigan.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: coordinating training for all applicants/officers and compliant repair arrangements before inspection.

Easy mistakes:

Questions

How much does a Michigan dealer license cost?

$160 a year for a Class B license, plus at least two dealer plates. The bond premium, fleet insurance and the site cost more. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

Is there training?

Yes, twice: pre-license training within six months before you apply, and post-license training within 90 days after you're licensed, then every 24 months. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

Do I need a repair shop?

You need either your own registered repair facility or an agreement with one. michigan.gov › dealers (source, opens in a new tab) michigan.gov › dealers (source, opens in a new tab)

Sources

Not affiliated with the Michigan Secretary of State. Not legal advice. Requirements change; always confirm with the state.