The Michigan auto dealer license is a legal requirement for individuals or businesses seeking to engage in the sale of new or used motor vehicles in the state of Michigan. The license is issued by the Michigan Secretary of State’s office and is mandatory for all auto dealers, including new car franchises, used car dealers, and motorcycle dealers.
Eligibility and Requirements
To be eligible for a Michigan auto dealer license, applicants must meet certain requirements, including:
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Age: Applicants must be at least 18 years old
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Residency: Applicants must be a resident of the state of Michigan
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Business Location: Applicants must have a established business location in Michigan
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Insurance: Applicants must have garage liability insurance and a dealer’s surety bond
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Criminal Record: Applicants must not have any felony convictions or misdemeanor convictions related to fraud or dishonesty
Types of Michigan Auto Dealer Licenses
The Michigan Secretary of State’s office issues several types of auto dealer licenses, including:
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New Vehicle Dealer License: Allows dealers to sell new vehicles
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Used Vehicle Dealer License: Allows dealers to sell used vehicles
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Motorcycle Dealer License: Allows dealers to sell motorcycles
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Recreational Vehicle Dealer License: Allows dealers to sell recreational vehicles such as RVs and campers
Application Process
The application process for a Michigan auto dealer license involves the following steps:
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Complete the Application: Applicants must complete the auto dealer license application form, which can be obtained from the Michigan Secretary of State’s office or downloaded from their website.
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Submit Required Documents: Applicants must submit required documents, including proof of insurance, a copy of their business registration, and a copy of their dealer’s surety bond.
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Pay the License Fee: Applicants must pay the license fee, which currently stands at $160 for a two-year license.
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Pass a Background Check: Applicants must undergo a criminal background check through the Michigan State Police.
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Pass a Dealer Training Course: Applicants must complete a dealer training course approved by the Michigan Secretary of State’s office.
Benefits of a Michigan Auto Dealer License
Obtaining a Michigan auto dealer license offers several benefits, including:
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Legal Authority: A licensed auto dealer has the legal authority to engage in the sale of motor vehicles in Michigan.
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Credibility: A licensed auto dealer is seen as a credible and trustworthy business in the eyes of consumers.
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Protection: A licensed auto dealer is required to carry garage liability insurance and a dealer’s surety bond, which protects consumers in case of any disputes or claims.
Conclusion
In conclusion, a Michigan auto dealer license is a legal requirement for individuals or businesses seeking to engage in the sale of new or used motor vehicles in the state of Michigan. The license is issued by the Michigan Secretary of State’s office and requires applicants to meet certain eligibility requirements and follow a specific application process. Obtaining a Michigan auto dealer license offers several benefits, including legal authority, credibility, and protection for consumers.
