Michigan Auto Dealer Bond

1. Apply for Your Michigan Auto Dealer Bond

Setting up your Michigan auto dealer bond begins when you fill out the online application. The application is brief and usually takes only a few minutes to complete. Our bond experts can assist you, if needed.

Adam recently applied for his Michigan auto dealer bond online with us. With a lower credit score, he anticipated a lengthy process. However, we gave him an instant quote. After we answered his questions, Adam made the premium payment and received his bond quickly.

2. Review Your Quote

After applying for an auto dealer bond on our website, applicants receive an immediate quote. In some situations, an application is more complicated and requires further review. We deliver quotes in these cases within 48 hours.

3. Pay the Premium Online

We can answer any questions you have about your quote before you finalize your purchase. To pay the premium, simply submit the payment through our website’s payment portal. Your bond will be delivered via email, and we can mail it as well, if requested. 

If you need assistance with your application or have questions, we can help. Please contact us or call us at (877) 514-5146.

The Michigan Department of State is responsible for vehicle dealer licensing. The licensing requirements are established under Section 248 of the Michigan Vehicle Code (MCL 257.248).

Class A, B and D license dealers must have a $25,000 bond to obtain a license. A Class A license is for buying and selling new vehicles. A Class B license is for buying and selling used vehicles. A Class D license applies to motor vehicle brokers. 

The dealer license must be renewed annually and the surety bond runs continuously, and it must remain active to avoid a license suspension.

A bond claim can be filed by government agencies, financing agencies, buyers and sellers. The bond can be used for the reimbursement of monetary loss related to dealer misrepresentation, cheating, fraud and tax deficiency.

A vehicle dealer bond remains active continuously until it is canceled by the surety. The surety must provide a 30-day written notice to the Michigan Secretary of State to cancel the bond. To maintain your bond and avoid a suspension of your vehicle dealer license, the premium must be paid each year.

Our bond experts will assist you with the maintenance of your dealer bond. Prior to the payment due date each year, we will be in touch with renewals and payment instructions.

To file a claim against your vehicle dealer bond, the claimant must contact the Michigan surety company directly. The surety company will thoroughly investigate the claim to confirm or deny its validity. If a claim is not validated, the surety company will deny it. 

If a claim is substantiated, the claimant will be compensated up to the bond’s penal sum by the surety company. You are then required to reimburse the Michigan surety company for the amount of the claim.

The Michigan Department of State Business Licensing Section is the authority on vehicle dealer licensing. You can get more details about licensing through our dealer licensing guide. Requirements for a vehicle dealer license in Michigan are:

• Dealer application packet
• Dealer certification
• Completion of training class
• Established place of business and business hours
• Surety bond
• Zoning approval
• Fingerprints of all owners, officers and partners
• Sales tax number and EIN
• Franchise agreement
• Motor vehicle repair facility registration
• Dealer plates
• Workers' compensation insurance
• Fleet insurance
• Business entity documentation
• Application fee

For additional information and to submit your licensing documents, contact:

Michigan DOS/Business Licensing Section
Richard H. Austin Building
430 W. Allegan, 4th Floor
Lansing, MI 48918
Phone: (888) 767-6424