Dealer Surety Bond in Michigan: $10,000–$100,000 Requirement
Michigan requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Michigan
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Michigan
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Michigan-Specific Note
Michigan-Specific Facts for Dealer Surety Bond
Michigan Vehicle transfer fees and requirements
In Michigan, the title transfer fee is $15 and registration costs Based on vehicle list price; varies widely. Vehicle sales are subject to 6% use tax on purchase price. Michigan does not require notarization for private-party vehicle transfers. Michigan does not require emission testing for private-party vehicle sales.
- Secretary of State handles title and registration
- Title transfer must be completed within 15 days
- Plate transfer allowed between vehicles owned by same person
Official Michigan bill of sale form
The official Michigan bill of sale form is TR-52 (Vehicle Bill of Sale). BillOfSaleNow generates a document that meets all Michigan requirements and can be used in place of the official form.
Michigan sales tax on vehicle purchases
Michigan has a 6% state sales tax rate. Flat 6% use tax statewide. Private-party vehicle sales in Michigan are subject to sales tax. Use tax applies to private party vehicle purchases. The title transfer fee is $15.
Michigan bill of sale statistics
BillOfSaleNow has generated 2,419 bill of sale documents for Michigan transactions, with 65 generated this month alone. The most popular vehicle type is car.
More Michigan Vehicle Guides
- Car Title Transfer Fees in Michigan
- Car Totaled Insurance Payout in Michigan
- Cash for Cars / Junk in Michigan
- Certified Pre-Owned Rules in Michigan
- Curbstoning Laws in Michigan
- Dealer Doc Fee in Michigan
Each guide is written specifically for Michigan laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Michigan?
Michigan requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Michigan?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Michigan?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Michigan dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Michigan?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.