DL
Dealer License by State
Michigan dealer license overview
Unofficial summary – verify with state regulator

Michigan Motor Vehicle Dealer License Requirements – 2025 Overview

To sell vehicles at retail in Michigan you must hold the correct dealer class license (Class A, B, etc.) issued by the Michigan Secretary of State. This overview focuses on the commonly used new and used vehicle dealer licenses.

Important: This is an unofficial summary, not legal or compliance advice. Statutes, rules, and forms change. Always confirm details with the official Michigan Secretary of State – Dealer and Repair Facility Division resources before you apply or make business decisions.

1. Who regulates dealers in Michigan?

Michigan dealer licenses are issued by the Michigan Secretary of State (SOS) – Business Licensing Section.

  • Regulator: Michigan Secretary of State – Dealer and Repair Facility Division
  • Dealer overview: Vehicle dealers – Michigan.gov
  • Application packet: often provided as the “Vehicle Dealer License Application Packet”.

2. Michigan dealer license classes

Michigan uses lettered dealer classes. For most independent retail used‑car operations, the key classes are:

  • Class A – New vehicle dealer
  • Class B – Used vehicle dealer
  • Class W – Wholesaler (no retail sales to the public)
  • Other classes exist for brokers, auctions, and specialty operations.

3. Michigan business location, lot, and office requirements

Class A and Class B dealers must have an established place of business that meets statutory standards.

  • An enclosed office with desk, phone, and record‑keeping space.
  • A display lot adequate for the number of vehicles you intend to offer for sale.
  • A permanent, clearly visible business sign.
  • Compliance with all local zoning ordinances.
  • The location is subject to inspection by the Secretary of State before a license is issued.

4. Entity, taxes, pre‑licensing training, and bond

4.1 Business entity and taxes

  • Form your entity and register with the Michigan Department of Licensing and Regulatory Affairs (LARA) if required.
  • Obtain a FEIN and register for Michigan sales tax through the Department of Treasury.

4.2 Pre‑licensing dealer training (Class B)

Applicants for a Class B used vehicle dealer license must complete a pre‑licensing dealer training course, typically within a specific time window (for example, within six months of applying). Proof of completion is submitted with the application packet.

4.3 Surety bond and insurance

  • Michigan requires a $25,000 surety bond for many dealer classes, including used vehicle (Class B), to protect consumers and the state.
  • Dealers must also maintain appropriate liability insurance coverage for the business and dealer plates.

5. Michigan dealer license application steps

  1. Determine your dealer class (A, B, W, etc.) based on your business model.
  2. Form your entity, set up tax accounts, and secure a compliant location.
  3. Complete the required pre‑licensing training if applying for a Class B license.
  4. Obtain your $25,000 dealer surety bond and liability insurance.
  5. Complete the Vehicle Dealer License Application Packet and gather all required documents and photos.
  6. Submit the application, bond, and fees to the Michigan Secretary of State.
  7. Pass the SOS inspection of your dealership location.

6. After approval: ongoing Michigan compliance

  • Renew your dealer license and bond by the due date.
  • Maintain accurate sales records, odometer statements, and title documents.
  • Ensure ongoing compliance with the Michigan Vehicle Code and dealer plate rules.
  • Notify SOS of changes in ownership, business name, or location.