How Much Does a Motor Vehicle Dealer Bond Cost in Michigan?
$25,000 Bond
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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
- Fingerprints
- 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.