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All state guides Michigan dealer license

How to get a used car dealer license in Michigan

You apply to the Michigan Department of State on form AR-0032 for a Class B used vehicle dealer license. Every owner must finish the state's free pre-licensing training in the 6 months before applying, and you need a $25,000 bond and a pre-license inspection.

  • Sourced to MDOS
  • Checked October 2026
  • Free
License
Class B used vehicle dealer license
Surety bond
$25,000
State fee
$160 a year
Pre-license course
Pre-license training, half day
Background check
Fingerprints, every owner
License term
Expires December 31 each year
What the state asks for

Michigan dealer license requirements

The figures a first-time used car dealer needs before applying to MDOS. Each row shows how well it is supported.

Surety bond
$25,000Official source

A continuous Uniform Vehicle Dealer Surety Bond filed with the application, in the exact business name and address. If the surety cancels it, the license is summarily suspended on the cancellation date.

State license fee
$160 a yearOfficial source

The license fee is $160 for every dealer class and is not refundable. A Class B dealer must also buy at least two dealer plates at $10 each, so the smallest check to the state is $180.

Pre-license education
Pre-license training, half dayOfficial source

Each owner, partner or officer must complete the state's pre-licensing dealer training in the 6 months before applying. It is free and held on Microsoft Teams. Sessions are scheduled 9 a.m. to noon.

Background check
Fingerprints, every ownerOfficial source

Every owner, partner, officer and director listed on the application must have fingerprints on file. The department sends the form and instructions after it receives your application. Do not get printed before then.

Insurance
20/40/10 no-fault fleet policyOfficial source

Fleet-type Michigan no-fault insurance of at least 20/40/10, shown on an ACORD 25 certificate that covers any vehicle or all owned vehicles and carries the exact business name.

Business location
150 sq ft office, 10-car lotOfficial source

A permanent building that is not a residence, a 150 square foot office with a restroom and phone, 1,300 square feet to display 10 vehicles plus 650 for customer parking, a sign, posted hours and repair service.

License term and renewal
Expires December 31 each yearOfficial source

Dealer licenses expire December 31 and are renewed through e-Services. Renewing in the 30 days after expiration adds a late fee of 50 percent. Let it lapse more than 30 days and you must apply for a new license.

Sales allowed without a license
Fewer than 5 in 12 monthsOfficial source

Michigan defines a dealer as someone who deals in 5 or more vehicles within 12 months. Selling five or more in 12 months without a license creates a rebuttable presumption that you are an unlicensed dealer.

Processing time
Up to 30 daysOfficial source

The department says a complete application can take up to 30 days to process. Missing documents delay it, and the pre-license inspection has to happen before the license is issued.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Michigan Department of State, Business Licensing Section

License you apply for

Class B used vehicle dealer license

Official licensing page

Wait for instructions before fingerprinting

The packet's cover page says not to get fingerprinted until the department sends you the form and instructions, yet its checklist lists a signed Livescan request (RI-030) for each applicant. Follow the cover page and ask the Business Licensing Section if unsure. Also note that Michigan bars vehicle sales on Sunday except in counties with fewer than 130,000 people.
Step by step

How to get a Michigan dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Complete the pre-licensing dealer training

    Email the Business Regulation Section at blrd@michigan.gov with the training date you want and the name and email of each owner or officer attending. Every individual applicant, partner or officer must complete it in the 6 months before the application date. It is free and held on Microsoft Teams.

    MCL 257.248l · free

  2. Set up the business

    File articles for a corporation or LLC, or an assumed name certificate for a sole proprietorship or partnership. The application asks for a copy. Contact the Michigan Department of Treasury about a sales tax license.

    Articles or assumed name filing

  3. Secure the location and get local sign-offs

    Find a site that meets the Class B established place of business rules, then have the zoning authority and the municipality sign the two approval forms in the packet. Each must be signed within 90 days of the date the state receives your application.

    Zoning and municipality forms

  4. Arrange repair service, bond and insurance

    Register your own repair facility or sign the servicing agreement with a registered repair facility within 10 miles. Have a surety complete the $25,000 Uniform Vehicle Dealer Surety Bond with the exact business name and address. Get an ACORD 25 showing 20/40/10 Michigan no-fault fleet coverage.

    $25,000 bond · ACORD 25

  5. File form AR-0032 with the fees

    Complete the Original Vehicle Dealer License Application, list every owner, partner, officer and director with their training dates, and choose up to three Secretary of State branch offices for your transactions. Mail it to the Business Licensing Section in Lansing or submit it online. Pay $160 plus $10 per dealer plate (two plates minimum).

    AR-0032 · $180 minimum

  6. Get fingerprinted when the state tells you to

    After the department receives your application it sends the form and instructions for the background check. Each person listed on the application then completes Live Scan fingerprinting. Do not get printed before you receive those instructions.

    Live Scan fingerprints

  7. Pass the pre-license inspection

    The department inspects the business location before it issues a license. Have the office, display lot, sign, posted hours, records area and repair arrangement in place. Do not sell until the license and plates are issued.

    On-site inspection

Practical advice

Do the training first: the application asks for each owner's training date, and it must fall in the 6 months before you apply. Get the zoning and municipality forms signed last, since they are good for only 90 days. Ask your agent to put the exact business name and the words any vehicle or all owned vehicles on the ACORD 25, or the application cannot be processed.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Michigan dealer location requirements

What the state checks at the business address.

  • A permanently enclosed building you own, lease or rent that is not a residence, tent, temporary stand or other temporary quarters.
  • An office of at least 150 square feet with standard office furniture, working utilities, a working restroom and a phone listed in the business name.
  • At least 1,300 square feet of land to display 10 vehicles, plus 650 square feet for customer parking, surfaced and well lit during business hours.
  • An exterior sign with the dealership name, permanently affixed to the building or land, with letters clearly visible from the roadway.
  • Posted hours of at least 30 a week, with 15 of them between 8 a.m. and 5 p.m. Monday through Friday.
  • A registered repair facility on site, or a written servicing agreement with one no more than 10 miles away, posted in the office.
  • The address cannot be another licensed dealer's place of business, and it must meet local zoning and municipal requirements.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Michigan dealer license

Renewal and ongoing duties

Renew through e-Services before December 31. A designated person must complete dealer training within 90 days of the license being issued and continuing education every 24 months after. Keep the bond and fleet insurance active. The state will not renew a dealer that has not bought or sold more than 5 vehicles in the prior 12 months.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Michigan dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Michigan?

Complete the state's pre-licensing dealer training, then file form AR-0032 with the Michigan Department of State's Business Licensing Section for a Class B license. You need zoning and municipality approval forms, a qualifying place of business, a $25,000 surety bond, no-fault fleet insurance, a repair facility or servicing agreement, fingerprints for each owner and a pre-license inspection.

How much is the dealer bond in Michigan?

$25,000. Class A (new), Class B (used) and Class D (broker) dealers all post a vehicle dealer surety bond in that amount. It is a continuous bond that must be in effect when you file. If the surety cancels it, the license is summarily suspended on the cancellation date.

How much does a Michigan dealer license cost?

The license fee is $160 a year for every dealer class. A Class B dealer must also buy at least two dealer plates at $10 each, so the minimum paid to the state is $180. Fees are not refundable. The bond premium, insurance and local costs are separate.

Do I need a pre-licensing course in Michigan?

Yes. Each individual applicant, partner or officer of a new Class B dealer must complete the state's pre-licensing dealer training in the 6 months before the application date. The Department of State runs it online on Microsoft Teams at no cost, and sessions are scheduled 9 a.m. to noon. After licensing, a designated person must train again within 90 days and every 24 months.

Can I get a Michigan dealer license without a car lot?

Not a Class B retail license. It requires at least 1,300 square feet to display 10 vehicles, 650 square feet of customer parking, and a 150 square foot office in a permanent building that is not a residence. A Class W wholesaler does not display vehicles, but it may sell only to licensed dealers and still needs a fixed office, a sign and posted hours.

How many cars can I sell in Michigan without a dealer license?

Fewer than five in a 12-month period. Michigan defines a dealer as a person who buys, sells or deals in 5 or more vehicles within 12 months, and the Dealer Manual says anyone who sells five or more in 12 months without a license is presumed to be an unlicensed dealer. That presumption can be rebutted.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with MDOS or your attorney before you sign a lease or pay a fee.

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