How much does it cost to sell a vehicle privately in Michigan?
Typical seller-side costs for a private vehicle sale in Michigan include: a release of liability filing fee (usually $0–$5 at the MI DMV or online), any outstanding title fees if the title has not yet been issued ($15 for a standard title in Michigan), smog or emissions certification if required, and advertising costs if you list on a paid platform (Craigslist, AutoTrader, or CarGurus typically range from $0–$100 for a private listing). If the vehicle still has a lien, you may also pay a lien release processing fee to your lender ($0–$50). The buyer in Michigan pays the use tax of 6% use tax on purchase price and registration fees. Selling privately eliminates dealer fees (typically 2–5% of vehicle value) and allows you to retain more of the sale price compared to a trade-in.
What you should do in Michigan
- Complete a bill of sale with buyer/seller names, VIN, sale price, and signatures.
- Bring the bill of sale to the Michigan DMV if required for title transfer.
- Keep a copy for your records for at least five years.
Fastest way to generate a compliant bill of sale
Use the BillOfSaleNow generator to create a Michigan-compliant bill of sale and download a signed PDF in minutes.
Michigan Car transfer fees and requirements
In Michigan, the title transfer fee is $15 and registration costs Based on vehicle list price; varies widely. Car sales are subject to 6% use tax on purchase price. Michigan does not require notarization for private-party car transfers. Michigan does not require emission testing for private-party car 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
Michigan sales tax on car purchases
Michigan has a 6% state sales tax rate. Flat 6% use tax statewide. Private-party car sales in Michigan are subject to sales tax. Use tax applies to private party vehicle purchases. The title transfer fee is $15.
Car market data and safety information
The most common car makes in private-party sales are Toyota, Honda, Ford, Chevrolet, Nissan. Average private-party car prices range from $5,000–$25,000. The average NCAP safety rating for recent car models is 4.2 out of 5 stars. Cars average 3.1 NHTSA recalls per model across categories including Airbags (Takata), Power Train, Fuel System.
Safety checkpoints for buying a used car
Before completing a car bill of sale in Michigan, verify these safety items:
- Verify airbag recall status (Takata recall affected 67M+ vehicles)
- Check tire age — tires over 6 years old degrade regardless of tread depth
- Confirm brake pad thickness and rotor condition
- Test all seatbelts for proper retraction and latching
- Verify ABS warning light cycles off after ignition self-test
- Confirm child-seat LATCH anchor accessibility and integrity
- Test headlight aim and high-beam function on both low and high settings
- Inspect windshield for cracks in the driver sight line that could fail state inspection
Car insurance and depreciation in Michigan
Liability insurance required in 49 states (New Hampshire is the exception). Average annual premium: $1,600–$2,200. Cars lose approximately 20% of value in the first year and 60% over five years. Japanese brands retain value best. Peak season for private car sales is spring (march–may) when tax refunds boost demand, with an average of 21 days on market.
Car registration and titling
Cars are classified as "Passenger vehicle" for registration purposes. Standard passenger cars weigh 2,500–4,500 lbs; no special weight-class registration required. Federal odometer disclosure is required for cars under 20 years old.
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.
Frequently asked questions — Michigan bill of sale
How much does it cost to sell a vehicle privately in Michigan?
Typical seller-side costs for a private vehicle sale in Michigan include: a release of liability filing fee (usually $0–$5 at the MI DMV or online), any outstanding title fees if the title has not yet been issued ($15 for a standard title in Michigan), smog or emissions certification if required, and advertising costs if you list on a paid platform (Craigslist, AutoTrader, or CarGurus typically range from $0–$100 for a private listing). If the vehicle still has a lien, you may also pay a lien release processing fee to your lender ($0–$50). The buyer in Michigan pays the use tax of 6% use tax on purchase price and registration fees. Selling privately eliminates dealer fees (typically 2–5% of vehicle value) and allows you to retain more of the sale price compared to a trade-in.
Does Michigan require notarization on a vehicle bill of sale?
No. Michigan does not require notarization for standard private-party vehicle transfers. A signed bill of sale with buyer and seller signatures is sufficient for most transactions in Michigan.
What form do I need for a vehicle bill of sale in Michigan?
Michigan designates form TR-52 (Vehicle Bill of Sale) as the official vehicle bill of sale. This form is available from the Michigan DMV. Alternatively, any bill of sale that includes all required fields — VIN, sale price, odometer, party names, and signatures — is legally accepted in Michigan.
What are the taxes and fees for a private car sale in Michigan?
Michigan charges 6% use tax on purchase price on private-party vehicle purchases. The title transfer fee is $15. Michigan does not require an emission test for private-party sales. The buyer pays these fees when transferring the title at the MI DMV.
Official Michigan DMV resource: Michigan DMV title transfer information
Michigan legal sources and citations
Primary sources reviewed by Amanda K. Torres — Small Business & Commercial Vehicle Specialist.
Common variations
Related questions about payment in Michigan.
- How to accept payment for a private vehicle sale in Michigan?
For private vehicle sales in Michigan, the safest payment methods are: (1) a cashier's check or money order from a known bank, verified in person at the issuing bank before releasing the vehicle; (2) a wire transfer confirmed with a bank receipt before keys are exchanged; or (3) cash for lower-value transactions (count it in a safe public location).
Related resources
Informational purposes only. This content is provided for informational purposes only and is not legal advice. Laws vary by state and individual circumstances differ. Consult a licensed attorney for jurisdiction-specific guidance on vehicle transfers, title requirements, or related legal matters.