A surety bond is like an insurance policy and can be obtained from insurance companies or bonding companies. If you would like to apply for a Michigan Vehicle Dealer License, the application is available on the Secretary of State Web site by clicking on "Automotive-related Businesses" at www.
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The Office of. Close Search Box. Official Website of Michigan. Who Needs a Dealer License? Who needs a license? What type of dealer license do I need? The cost of a dealer surety bond is based on your credit score and the cost of your insurance is based upon your driving record. I am often asked what it costs to obtain a Michigan dealers license and I can never answer that question accurately because the total cost will depend on your credit score and your driving record.
If you have a couple of blemishes on your credit score, the price of your bond can increase dramatically. The bond must be a surety bond eecuted by an insurance or bonding company authorized to do business in Michigan, The bond must be signed by the individual, all partners if a partnership or one corporate officer if incorporated. Bonds may not be handwritten and must contain all required signatures and an embossed stamp, seal or sticker.
I want to show you how to easily download a Michigan Dealer Application packet that will contain all the forms needed to apply for your Michigan Dealer License You must also obtain a sales ta number before the State of Michigan will allow you to have a dealers license. You can call Sales Ta Number Call The State of Indiana requires dealers to be of a higher ethical standard than the average person walking down the street.
Very soon you will have oversight over very large financial transactions. Most of the vehicles you sell with your dealers licenses will be worth several thousands of dollars. This are very large financial transactions that the State of Indiana is allowing you complete oversight.
So, before the State of Indiana approves your dealers license, they want to make sure you never rolled back odometers, they want to make sure you have never stolen a car, the State of Indiana wants to make sure they are not giving a dealers license to someone that was managing some auto theft ring.
As I stated a moment ago, the state of Indiana requires dealer to be high ethical standards so you a background check will be ran on you when you obtain your mandatory fingerprints. Srceen shots The sign must be professionally designed on permanent material, and the lettering applied on the sign shall be a minimum of 16 square feet.
At least one sign must be located and positioned to be clearly visible to consumers from the street. Step 3 Building and Lot You must have a building for your Michigan dealers license.
Your business building must be a permanent enclosed building owned or leased by you, The established place of business must be devoted mainly to the operation of your dealership A dealer may use a trailer as you building but state law requires you to remove the wheels. Whether you are a retail dealer , broker, or a wholesale dealer you must meet local zoning requirements.
Not sure how to get an Auto Dealer Bond? Use this interactive tool to help you out. If you fail to follow rules and regulations, someone can make a claim against your bond.
The best way to see what you would pay is to get a free quote :. Send your application package and original bond to the Michigan Department of State at the address below:. Include a check or money order payable to "State of Michigan" for license and plate fees. Fees are different for each class. A minimum of 2 dealer plates is required for your business. However, most states allow a private citizen to sell only two or three vehicles per year without a license.
You also won't get access to dealer auctions without a license, which is where most used car dealers find their best stock. Sometimes, entrepreneurs looking to dip a toe into the water will "rent" a dealer's license by paying a membership fee to a local dealership that provides access to dealer auctions and other benefits of being a licensed dealer. However, these practices can be legally dubious, and you're better off avoiding them. The bottom line is this: If you want to be an auto dealer, you need an auto dealer's license.
Dealing cars without a license is illegal, and if you get caught, it can make it harder to get a license in the future. Ultimately, the good news is that you don't have to have any kind of lot space to get a dealer's license. You can go through a process that's fairly similar to the licensing process for a dealer with a lot. The auto dealer license application process can be fairly long and involved, but with the right know-how, thousands do it every year.
The steps you'll need to follow will include:. There are a few special considerations to know for dealerships without lots.
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