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Michigan Motor Vehicle Dealer Bond

Michigan Motor Vehicle Dealer Bond

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Who Requires the Motor Vehicle Dealer Bond and Why Is It Needed?

Salesman. Motor Vehicle Dealer Bond for auto dealers or others who buy, sell, auction, or repair cars or other motor vehicles.

The Michigan Department of State requires that auto dealers post a $10,000 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.

How Much Will My Surety Bond Cost?

Take 2 minutes to provide the basic information required to get the best rates for your Michigan Motor Vehicle Dealer Bond. The quote request is free and there is no obligation to you. If you prefer, please call 1‐800‐608‐9950 to speak with one of our friendly bond experts. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

If you are interested in spreading out the cost of your bond over time, we can offer convenient financing plans for many types of surety bonds. More information will be provided with your quote.

What Does the 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.

What is Needed to Obtain My License or Registration?

The following is an overview of key motor vehicle dealer licensing requirements in Michigan.

  • Completed Application
  • Fingerprints
  • Sales tax number from Michigan Department of Treasury
  • Surety bond in the amount of $10,000
  • 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.

List of Michigan surety bonds.

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