Dealer Licensing in Michigan

The Michigan Secretary of State (SOS) oversees everything relating to car dealer licenses. You need to apply for a MI dealer license if you buy, sell, broker, or lease at least 5 motor vehicles in 12 months.

Types of Dealer Licenses

The Michigan SOS offers different types of dealer licenses; a few common classes include:

• Class A — Dealers of new cars.
• Class B — Dealers of used cars.
• Class C — Dealers of parts from used cars.
• Class D — Brokers of car sales or leases.

For the full list of different classes and their qualifications, check out the Secretary of State’s guide to dealer licensing. 

Michigan Dealer Application Packet

The MI Secretary of State’s Dealer Manual and Dealer License Application Packet explain all the requirements to apply for a car dealer license. Make sure you take the time to read over the material—it’ll prevent future setbacks!

When submitting your Dealer License Application Packet be prepared to provide:

• Personal information about all owners, partners, corporate officers, and directors.
• A completed:
  • Uniform Vehicle Dealer Surety Bond (Form TR-121).
  • Zoning Approval (REV 2023).
  • Municipality Approval (REV 2023).
  • Dealer Selection for Designated Branches (REV 2022).
  • Repair Facility Application (Form AR-0012).
    • You can substitute this with an agreement from a local registered repair facility.    
• Proof of no-fault fleet insurance.
• Proof of worker’s compensation insurance.
• If you plan on selling new cars (Class A dealer license), your manufacturer(s) franchise agreement(s).
• A copy of the business creation document.
• Your sales tax number.
• Copy of the signed LiveScan Fingerprint Background Check Request (Form RI-030).
  • You must make an appointment with and pay a fee to the Michigan State Police (MSP) for your fingerprint scan.
• A check or money order payable to “State of Michigan” for the applicable fees.
• New and used car dealers must have a minimum of 2 dealer plates.

Pay close attention to the instructions in your packet. Depending on what type of dealer you are, you may be exempt from certain requirements.

Mail your completed application packet and applicable fees to:

Michigan Department of State
Business Licensing Section
Lansing, MI 48918

Before receiving your license, your dealership will have to pass an inspection—the application packet includes a list of all business location requirements and information on scheduling an inspection appointment.

NOTE: This list only highlights car dealer application requirements, so be sure to read the application instructions carefully. Some license classes may require additional or fewer documents. 

Dealer Licensing Fees

Dealer license fees in Michigan are as follows:

• Class A: $160.
• Class B: $160.
• Class C: $160.
• Class D: $160.
• Class E: $160.
• Class F: $160.
• Class G: $160.
• Class R: $160.
• Class W: $160.
• Dealer plates (for all classes): $10 each.