To apply, you must:
10 Michigan Dealer License Requirements
Michigan Dealer Licenses are issued by the Michigan Department of State, Business Licensing Section. This page covers Michigan's 10 Dealer License classes, their requirements, bond amount, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you'll use it through the entire Dealer License process. Michigan's Dealer application accepts 4 business types: Individual Owner (one person or husband and wife), Partnership, Corporation, and Limited Liability Company.
An LLC keeps your business separate from your personal life and adds trust to the name.
Owners, partners, officers, directors, and LLC members go on the application, and each one is fingerprinted. Adding someone later takes a separate change form (AR0069), and the Department says to allow 30 days for it, so add everyone at the start.
Choose your Dealer License Type
One license can hold more than 1 class. Most people start with Class B, the used-vehicle license, or Class W, the wholesale license. Class W and 6 other classes can run from a home; Class A and Class B cannot.
| License Type | What It Lets You Do |
|---|---|
| Class BUsed or Secondhand Vehicle Dealer | Buy and sell used vehicles to the public and to other Dealers. Requires a $25,000 bond, a building that is not a residence, and the free pre-license training. Salvage vehicles at auctions and salvage pools need Class C, H, or R |
| Class WWholesaler | Buy and sell used vehicles only with other licensed Dealers, never the public, from a home if you like. No bond, no training. Buy or sell at least 24 vehicles a year to keep it |
| Class ANew Vehicle Dealer | Buy and sell new vehicles under a manufacturer franchise. Requires a $25,000 bond and a building that is not a residence |
| Class CUsed Vehicle Parts Dealer | Buy late-model vehicles to dismantle for parts or scrap. 1 of 3 classes that can buy salvage vehicles at auctions, brokers, and salvage pools. No bond |
| Class DBroker | Bring a buyer and a seller together for a fee, without ever taking title. Requires a $25,000 bond; pairs only with Class G |
| Class EDistressed Vehicle Transporter | Buy, haul, and sell scrapped or junked vehicles wholesale to Class C, F, or R Dealers. No dismantling, no parts sales, no bond |
| Class FVehicle Scrap Metal Processor | Shred, shear, or bale vehicles into scrap; crushing alone does not count. No bond |
| Class GVehicle Salvage Pool | Store and display damaged vehicles for insurance companies. No bond; pairs only with Class D |
| Class HForeign Salvage Vehicle Dealer | For an out-of-state salvage Dealer buying wholesale salvage in Michigan. Your place of business stays in your home state. No bond |
| Class RAutomotive Recycler | Dismantle vehicles for parts as your main business, and sell whole salvage vehicles at retail now and then. No bond |
| Salvage Vehicle AgentA separate individual license, not a dealer class | For the person who buys at auctions, brokers, and salvage pools for a Class C, H, or R Dealer. 2 agents per dealership at a time |
Get your Dealer Bond (Uniform Vehicle Dealer Surety Bond)
A Michigan Class A, B, or D Dealer License requires a $25,000 Uniform Vehicle Dealer Surety Bond, filed with the Department of State (MCL 257.248(2)). The bond pays a purchaser, seller, lessee, financing agency, or government agency harmed by fraud, cheating, or misrepresentation by the Dealer or an employee.
It also covers the state for unpaid sales or use tax. The bond is priced at 1% of the bond amount, $250 a year, after a credit check. The amount rose from $10,000 to $25,000 in 2023, and some bond sites still quote the old figure.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Class B Used Vehicle DealerMichigan - Uniform Vehicle Dealer ($25,000) | $250/yearabout $21 a month, after a credit check | $25,000 |
| Class A New Vehicle DealerSame bond product | $250/yearabout $21 a month, after a credit check | $25,000 |
| Class D BrokerSame bond product | $250/yearabout $21 a month, after a credit check | $25,000 |
| Classes C, E, F, G, H, R, and WParts, transporter, scrap, salvage pool, foreign salvage, recycler, and wholesaler | No Bond Required | |
Get your Dealer Insurance (Fleet No-Fault) — Class A, B, and W
A Michigan Class A, B, or W Dealer License requires a minimum of 20/40/10 fleet-type Michigan no-fault vehicle insurance, under Public Act 294 of 1972. Classes C, D, E, F, G, H, and R have no insurance requirement for the license. Your insurance agent sets the price.
Your agent files proof on an ACORD 25 certificate in the exact business name on your application. It must show coverage for “all-owned vehicles” or “any vehicle,” or the Department cannot process the application. Keep a copy in every dealer-plated vehicle that leaves the lot, including test drives.
Set up your Dealer Office (Established Place of Business)
A Michigan Class W Wholesaler can run from a room in your home. The law bans only “a commercial mailbox, tent, temporary stand, or other temporary quarters” (MCL 257.14(3)(a)); a house you own, lease, or rent qualifies. The same rule covers Classes C, D, E, F, G, and R.
A Class A or B location must be a permanently enclosed building that “is not a residence, tent, temporary stand, or any temporary quarters” (MCL 257.14(2)(a)). Two Dealers cannot share one address; each business must meet the requirements on its own. The table below has the exact specs.
Every class needs a Dealer Zoning Form and a Dealer Municipality Approval Form (MCL 257.248(6)(b)). Your local zoning or municipal authority signs each one within 90 days of the application. In Detroit, only forms with the city seal are accepted.
| Class A and B | Class W | Classes C, D, E, F, G, R | |
|---|---|---|---|
| Building | A permanently enclosed building you own, lease, or rent that is “not a residence, tent, temporary stand, or any temporary quarters” | A permanently enclosed building you own, lease, or rent that is not a commercial mailbox, tent, temporary stand, or other temporary quarters. A house qualifies. If this is your first Class W license, not within 200 feet of another licensed wholesaler | Same as Class W, without the 200-foot rule |
| Office | At least 150 sq ft, with standard office furniture, working utilities, a working restroom, and a working phone listed in the business name | At least 8 by 8 feet with a door and 4 rigid walls, working utilities and restroom, a desk, and a locking filing cabinet | Same as Class W |
| Vehicles | At least 1,300 sq ft to display a minimum of 10 vehicles, plus 650 sq ft of customer parking, both surfaced and lit | No vehicle display on the premises; storing pre-sale inventory is fine | No display or parking minimum published |
| Sign | An exterior sign with the dealership name, permanently affixed, letters clearly visible from the roadway | An exterior sign identifying the business | An exterior sign |
| Hours | 30 hours a week, 48 weeks a year; 15 of those between 8 a.m. and 5 p.m., Monday to Friday | 15 hours a week between 8 a.m. and 5 p.m., Monday to Friday | 15 hours a week, 48 weeks a year; 5 of those between 8 a.m. and 5 p.m., Monday to Friday |
Attend the Pre-License Dealer Training — Class B only
A Michigan Class B Dealer License requires every owner, partner, and officer to complete the Department's prelicensure dealer training (MCL 257.248l(2)). The class must fall in the 6 months before you apply.
The other 9 classes have no training requirement. Michigan has no Dealer exam: the class ends with a certificate of completion, not a test.
The class:
- Free, run by the Department itself, live over Microsoft Teams
- A half-day session; pre-registration is required
- Sign up by email to [email protected], or find the schedule on the Department's dealer training page
Pass the Background Check (IdentoGO Fingerprints)
Every owner, partner, officer, director, and LLC manager on a Michigan Dealer application is fingerprinted (MCL 257.248f). The prints go to the Michigan State Police and the FBI for a criminal history check.
The Department will not approve the license until both reports are back. Anyone with a direct impact on the operation of the business is fingerprinted too.
How it works:
- Fingerprints are taken through IdentoGO, Michigan's vendor, after the Department sends you instructions. Don't get printed before then
- The State Police fee is up to $30 per person; the FBI portion is charged separately
- The State Police report back within 45 days of a proper request and fee
- A person the Department already checked on an earlier license is not checked again
The application also asks each owner to disclose:
- Any dealer, wholesaler, broker, salvage dealer, or salvage agent license refused, revoked, or suspended, in Michigan or any other state
- Whether you are related by birth or marriage to a current or former Michigan Dealer, wholesaler, broker, or salvage agent
- Whether you worked for, or were an agent of, any Dealer in the past 5 years
- Any arrest or conviction, other than traffic, in the past 10 years
- Your employers for the past 5 years
Get your Dealer License Plates
A Michigan Class A or B Dealer must order at least 2 dealer plates with the application, at $10 per plate (MCL 257.248(3)). Dealer plates let you drive your inventory on the road without registering each vehicle. Class W plates are optional, and Classes C, D, E, F, G, H, and R get none.
Employees and agents can drive a dealer-owned vehicle on a dealer plate “for any purpose except as a service vehicle,” with no time limit. A customer can test-drive for up to 72 hours, and drive a purchased vehicle on your plate for 72 hours after delivery.
How many plates:
- Not on a dealer tag: loaners, rentals, parts-delivery and tow vehicles, which need their own registration
- Class A and B: at least 2, then 1 plate per 5 vehicles in your highest inventory up to 400 vehicles, and 1 per 7 above that, up to 100 plates
- Class W: 1 in your first year. After that, 1 per 5 vehicles up to 40 and 1 per 10 above, up to 10 plates, with proof of inventory
- Replacements: a lost or damaged plate is $5
- Auctioneer and in-transit repair plate: a separate optional plate for picking up or delivering vehicles for repair or auction, $20, renewed for $5 every March 31
Submit your Dealer License Application (AR-0032)
You apply to the Michigan Department of State through its e-Services portal, or on the Vehicle Dealer License Application Packet (AR-0032). The license fee is $160 a year for every class. Every fee is itemized under costs.
Every owner, partner, officer, member, and director lists a home address, date of birth, and SSN; the EIN field is optional. Michigan asks for no driver's license or ID copy, and no owner has to live in Michigan. Only the business must be in the state.
Pass the Site Inspection (Pre-License Inspection)
A Michigan Department of State field agent inspects your business location after you apply and before the license is issued. The Department calls it a pre-license inspection. The agent checks the location against the established place of business rules in MCL 257.14, the same specs in the Office section.
After you apply:
- The Department investigates within 15 days of receiving your application (MCL 257.248(1))
- The State Police return the fingerprint report within 45 days of the request
- The Department says applications can take up to 30 days to process
- Your license is issued once the location passes
Dealer License Cost
A Michigan Dealer License costs $160 a year for every class, from Class A to Class W. Class A and B Dealers also buy at least 2 dealer plates, at $10 each. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Dealer License, all 10 classes | $160 a year |
| Dealer BondClass A, B, and D only | $250 a year, 1% of the $25,000 bond, after a credit check |
| Fleet no-fault insuranceClass A, B, and W only | 20/40/10 minimum, priced by your agent |
| Dealer plates | $10 per plate; at least 2 for Class A and B$5 replacement |
| Fingerprint check, per person | $30 maximum, State Police portionFBI portion charged separately |
| Pre-license trainingClass B only | Free |
| Repair facility registrationClass A and B, only if you register your own location instead of using a servicing agreement | $100 a year, revenue under $50,000$200 $50,000 to $100,000$300 $100,001 to $200,000$400 $200,001 to $300,000$500 over $300,000 |
| Auctioneer and in-transit repair plateOptional, for picking up or delivering vehicles for repair or auction | $20 per plate$5 renewal, every March 31 |
| Late renewalFiled within 30 days after December 31 | 150% of the renewal fee |
Dealer License Renewal
A Michigan Dealer License is valid through December 31 every year, and renewal is $160. File at least 30 days before expiration; the Department can renew for up to 4 years at once.
A Class B Dealer also certifies that its continuing education is current. The Department offers it free at least twice a quarter, at least 2 hours a session, or self-guided on MiTrain.
If you file late:
- Within 30 days after December 31, the fee is 150% of the renewal fee
- More than 30 days after, you are a new applicant and start the whole process over
Common Questions
Can you get a Michigan Dealer License with a felony?
Yes, in most cases: Michigan's dealer law has no general felony bar. The Department may deny or revoke a license on 11 listed grounds (MCL 257.249), and only 2 involve a conviction: VIN tampering and falsifying used-parts records. A VIN-tampering felony revokes a Dealer License automatically. There is no published waiting period.
Every owner still answers the 10-year arrest-or-conviction question on the application, and a false answer is a felony. A conviction that has been set aside counts as no conviction, on the application too. If the Department moves to deny, it holds a hearing first, and you have 30 days to appeal to circuit court.
Can you get a Dealer License in Michigan without a lot?
Yes, on 7 of the 10 classes. A Class W Wholesaler can run from a house. The law bans only a commercial mailbox, tent, temporary stand, or other temporary quarters. Classes C, D, E, F, G, and R follow the same rule. Class A and Class B require a building that is not a residence. See the office requirements.
How many cars can you sell in Michigan without a Dealer License?
Michigan requires a Dealer License once you buy, sell, broker, or lease 5 or more titled vehicles in any 12-month period (MCL 257.248). Four or fewer in that window doesn't need one.
Can a family member drive on a Michigan dealer plate?
Not as family. Michigan lets a Dealer's employees, servants, and agents drive a dealer-owned vehicle on a dealer plate for any purpose, with no time limit. A spouse or child qualifies only as an employee or agent of the dealership. A customer can drive on your plate for up to 72 hours. See the dealer plate rules.
Can a Michigan Class W wholesale Dealer sell to the public?
No. A Class W Wholesaler buys and sells used vehicles only with other licensed Dealers. Any online or classified ad must state the license classification and that the buyer must be a licensed Dealer. Class W needs no bond or training and can run from a home. It must buy or sell at least 24 vehicles a year.
How long does licensing take?
Michigan publishes no single answer. The Department investigates within 15 days of receiving the application and says applications can take up to 30 days to process. The State Police fingerprint report comes back within 45 days of the request. No law sets one overall deadline for the decision.
Do I need a business bank account?
No. Nothing on Michigan's Dealer application, its bond form, or the Dealer Manual asks for a business bank account, an account number, or an authorized signer.
Support
The Business Licensing Section takes Michigan Dealer applications, and the Business Compliance and Regulation Division handles inspections. Training sign-ups go to a separate email, [email protected].
| Contact | Detail |
|---|---|
| Department | Michigan Department of State, Business Licensing Section |
| Phone | (888) 767-6424 1-888-SOS-MICH |
| [email protected] | |
| Address | Michigan Department of State, Business Licensing SectionLansing, MI 48918Courier: Richard H. Austin Building, 430 W. Allegan, 4th Floor, Lansing, MI 48933 |
Additional sources (7)
The forms, the portal, and the statute for each step are linked in the steps. These are the rules, the fee tables, and the laws the page was checked against.
- Dealer Manual, Chapter 1 (PDF) — the Department's own rules: the 10 license classes (§1-13), the established place of business (§1-2), the $25,000 bond (§1-5), and dealer plates (§1-14). Section 1-6 is why Class A, B, and W Dealers must have 20/40/10 fleet no-fault insurance, under Public Act 294 of 1972
- Repair Facility Manual, Chapter 1 (PDF) — the repair facility registration fee table, $100 to $500 a year by revenue
- MCL 257.250, hearings and appeals — the hearing before a denial and the 30-day appeal to circuit court
- MCL 780.622, set-aside convictions — a conviction that has been set aside is treated as no conviction
- MCL 28.273, fingerprint fee — the State Police fee for a licensing fingerprint check, up to $30
- Dealer Corporate Officer Change Application (AR0069, PDF) — the form for adding or removing an owner, officer, partner, director, or member after licensing
- MCL 257.248b, foreign salvage vehicle dealers — the Class H license for an out-of-state salvage Dealer
