Uniform Vehicle Dealer Bond
Michigan Uniform Vehicle Dealer Bond Information
The Michigan Department of State requires that auto dealers post a $25,000 Uniform Vehicle Dealer Surety Bond to ensure business is conducted in accordance with the laws and regulations set out by the state. Among other requirements, motor vehicle dealers must pay all state taxes and related fees, refrain from fraudulent or unethical business practices, and properly represent the condition of vehicles sold.
The bond amount increased from $10,000 to $25,000 effective January 23, 2023. All existing bonds will remain in force until their renewal at which time a bond rider is required to increase the bond to the new $25,000 requirement.
What Does a Motor Vehicle Dealer Bond Protect Against?
The surety bond protects any purchaser, seller, financing agency, or government agency for any monetary loss after final judgment is entered in a court of record against the bonded principal for fraud, cheating or misrepresentation. The bond also protects the State of Michigan for any sales tax deficiency or use tax efficiency as defined by the Public Acts.
The aggregate liability of the surety for all such judgments will not exceed the amount of the bond. The bonded principal is obligated through indemnity to reimburse the surety for any losses paid out.
Getting Your Michigan Business License or Registration
The following is an overview of key motor vehicle dealer licensing requirements in Michigan. For more information, see our Guide to Getting Your Motor Vehicle Dealer's License in Michigan.
- Completed Application
- Sales tax number from Michigan Department of Treasury
- Surety bond in the amount of $25,000
- Zoning Approval
- Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.