Car dealer bond cost
Michigan uniform vehicle dealer surety bond amounts are set at $10,000. The cost of this particular bond is subject to underwriting and depends on the applicant’s personal credit report.
We are offers optional errors and omissions insurance for no additional charge.Give us a call at 888.610.4474 or submit a bond request to begin our fast and easy bonding process.
Why this bond
Michigan auto dealer surety bonds guarantee that the principal (vehicle dealer) will not sell any vehicles that they know to be faulty, conduct business at a non-licensed location or engage in any fraudulent, unethical or unlawful practices. Uniform vehicle dealer surety bonds also make certain that dealerships pay the state for any and all owed taxes or other related fees.
This bond does not allow Michigan vehicle dealers to acquire late model vehicles or salvageable parts through a salvage pool, or broker without first obtaining a salvage vehicle agent license. The Secretary of State will investigate any and all alleged cases of persons conducting business as a salvage vehicle agent without a license.
Vehicle dealer bond details
Michigan uniform vehicle dealer surety bonds are continuous until canceled. In the event of cancellation, the surety must give the state at least 30 days’ notice.
Individual owners and partners must be listed on the bond form in addition to the business name and address. Corporate officers do not need to be listed for a corporation, but the corporate name (or DBA, if applicable) must appear on the bond form.
Become a motor vehicle dealer
The following information must be included on the application to become an auto dealer in Michigan:
- a completed zoning approval form for all license classifications being applied for
- a completed municipality approval form for all license classifications being applied for
- a copy of the business creation document or assumed name filing
- one copy of the signed receipt as proof of fingerprinting for each applicant
- franchise agreement(as) for Class A dealers
- a certificate of insurance for workers’ compensation insurance or a notice of exclusion form (Class C or Class R dealers only)
- a repair facility registration application or an agreement with a registered repair facility (Class A and B dealers only)
- a certificate of insurance for fleet-type Michigan no-fault insurance (Class A, B and W dealers only)
- a check or money order payable to State of Michigan for the license and plate fees
- a completed vehicle dealer surety bond (Class A, B and D dealers only)
- and more
Applicants should allow at least 30 days for processing.
Apply for your surety bond
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