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Financed Purchase bill of sale — Ann Arbor, Michigan

Financed Purchase Payment Bill of Sale for Truck in Ann Arbor, MI

A financed vehicle purchase involves a third-party lender (bank, credit union, or the seller) providing the funds for th… Complete your Ann Arbor truck financed purchase transaction at the MI Secretary of State – Ann Arbor Office.

Ann ArborMichiganTruckFinanced Purchase

Financed Purchase Truck Sale in Ann Arbor

A financed vehicle purchase involves a third-party lender (bank, credit union, or the seller) providing the funds for the buyer to purchase the vehicle. The lender holds a security interest (lien) in the vehicle until the loan is fully repaid.

In Ann Arbor, Michigan, the local office handling title transfers is the MI Secretary of State – Ann Arbor Office at 2470 W Stadium Blvd, Ann Arbor, MI 48103. The combined sales tax rate is 6.00%. Notarization is not required for a private vehicle bill of sale in this jurisdiction.

Payment documentation requirements

When a bank or credit union finances the purchase, they typically pay the seller directly and the buyer repays the lender in installments. If the seller is providing financing (seller carry-back), a separate promissory note should document the loan terms, interest rate, payment schedule, and default provisions in addition to the bill of sale.

How financed purchase affects title transfer

In financed transactions, the title is issued with the lender's name noted as lienholder. The buyer receives a copy of the title but the lender typically holds the original until the loan is paid off. Once the loan is satisfied, the lender releases the lien and the buyer receives a clean title.

Local DMV — Washtenaw County

DMV / Title Office

MI Secretary of State – Ann Arbor Office

Address

2470 W Stadium Blvd, Ann Arbor, MI 48103

Phone

(888) 767-6424

Office Hours

Mon–Fri 9:00 AM–5:00 PM

Local Fees & Taxes

Title Transfer Fee

$15.00

Sales Tax Rate

6.00%

Base Registration Fee

$20.00

Michigan statewide rate 6%

Notarization: NOT REQUIRED

Michigan does not require notarization.

Ann Arbor Financed Purchase Transfer Checklist

  • The federal Truth in Lending Act (TILA / Regulation Z) requires disclosure of the APR, finance charge, amount financed, and total of payments.
  • The lienholder must be recorded on the title so the lender’s security interest is perfected.
  • Keep the signed retail installment contract or loan agreement together with the bill of sale.
  • Michigan applies 6% use tax on purchase price on vehicle purchases, collected when the buyer registers the vehicle.
  • Michigan does not require notarization for a private-party bill of sale, though notarized signatures are more defensible.
  • Michigan’s official bill of sale form is TR-52 (Vehicle Bill of Sale).
  • An odometer disclosure is required on the Michigan title transfer.
  • Title transfer at SOS within 15 days
  • 6% use tax at title transfer
  • Seller must sign title and provide odometer disclosure
  • Both parties should retain a bill of sale copy

Michigan forms and documents

  • TILA Disclosure Statement
  • Retail Installment Contract or Loan Agreement
  • TR-52 (Vehicle Bill of Sale)

Key facts for financed purchase transactions

  • Lienholder's name appears on title until loan is fully repaid
  • Seller financing requires a promissory note in addition to the bill of sale
  • Truth in Lending Act (TILA) disclosures required for seller financing
  • Existing liens on the vehicle must be cleared before title transfers
  • State usury laws cap the maximum interest rate in seller-financed deals

Important notice

If the vehicle still has an existing lien from the seller's own loan, that lien must be paid off and released before clear title can be transferred to the buyer. Never complete a financed purchase without confirming the title is free of prior liens.

Ann Arbor at a glance

Population

121,179

Median Household Income

$81,089

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Frequently asked questions

How does a financed purchase truck sale work in Ann Arbor?

A financed vehicle purchase involves a third-party lender (bank, credit union, or the seller) providing the funds for the buyer to purchase the vehicle. The lender holds a security interest (lien) in the vehicle until the loan is fully repaid. Title transfers in Ann Arbor are handled at the MI Secretary of State – Ann Arbor Office (2470 W Stadium Blvd, Ann Arbor, MI 48103). When a bank or credit union finances the purchase, they typically pay the seller directly and the buyer repays the lender in installments. If the seller is providing financing (seller carry-back), a separate promissory note should document the loan terms, interest rate, payment schedule, and default provisions in addition to the bill of sale.

What is the sales tax on a financed purchase truck purchase in Ann Arbor?

The combined sales tax rate in Ann Arbor is 6.00%. Michigan statewide rate 6%

How does financed purchase affect the title transfer process in Ann Arbor?

In financed transactions, the title is issued with the lender's name noted as lienholder. The buyer receives a copy of the title but the lender typically holds the original until the loan is paid off. Once the loan is satisfied, the lender releases the lien and the buyer receives a clean title. Bring the signed title and completed bill of sale to the MI Secretary of State – Ann Arbor Office (2470 W Stadium Blvd, Ann Arbor, MI 48103) with payment for the $15.00 title transfer fee.

Is notarization required for a financed purchase truck bill of sale in Ann Arbor?

No. Michigan does not require notarization.

What are the legal requirements for a financed purchase truck sale in Michigan?

Seller-provided financing is subject to the Truth in Lending Act (TILA, Regulation Z), which requires disclosure of the Annual Percentage Rate (APR), total finance charge, amount financed, and total payments. State usury laws may limit the maximum interest rate a private seller can charge. Dealer-provided financing is regulated at the state level and may involve additional disclosure requirements. The federal Truth in Lending Act (TILA / Regulation Z) requires disclosure of the APR, finance charge, amount financed, and total of payments.

Is a financed purchase bill of sale legally binding in Ann Arbor?

Yes. A properly completed bill of sale with financed purchase payment terms is legally binding in Michigan. Both buyer and seller should sign and retain a copy. Bring it to the MI Secretary of State – Ann Arbor Office to complete the title transfer.

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