Dealer-related Information in Michigan

Being a dealer can be daunting, especially if you don't have the backing of a huge support staff. Here are some frequently asked questions that may make life just a little bit easier.

Another dealer and I would like to combine our space and resources so we can meet the minimums for a used vehicle dealer. Can we?

No. Pooling resources isn't allowed. Dealers need their own space. Dealers must maintain an actual physical location where books and records are kept. Your place of business must also be where the Secretary of State can mail your license, a customer can mail a complaint, and a representative from the Secretary of State can meet with you to review your records.

Can I use my cell phone as my "working" telephone for the business?

Yes, providing it's listed in the name of the business on your license and is listed in a telephone directory.

Can I operate out of a motor home?

Not really. You need to have a fixed address. While you may conduct a large amount of business from a motor home, it can't be considered permanent.

I sell new and used vehicles. Do I also need a Class W wholesaler's license?

No. You can perform wholesale transactions on the license you already have as a Class A dealer.

How much does a Class W wholesaler license cost, and are my bonding requirements the same as those for a new or used car dealer?

While your license costs the same as a license for a new or used car dealer, you don't have to be bonded.

Can I conduct any retail trades as a Class W dealer?

No, you must only deal wholesale.

Can I buy dealer plates?

Yes. In fact, Class A and B dealers are required by law to purchase at least two dealer plates, and they may purchase more depending how many vehicles they have in inventory. Class W dealers may also purchase plates, but they are not required to. To apply for dealer plates, you must have 20/40/10 fleet insurance that covers all vehicles you own.

How do I renew my dealer license?

All dealer licenses expire every Dec 31st. You'll need to submit the Vehicle Dealer License Renewal Application, form AR-0033 (not available online), by Nov 1st each year to assure enough time for processing. The form should be mailed to you in September. If not, request a replacement by contacting the Business Compliance and Regulation Division by telephone at (888) 767-6424.

Am I allowed to conduct business on Sunday?

Yes―and no. If your county has fewer than 130,000 inhabitants, you may complete a sale on a Sunday. And any dealer may sell motorcycles or recreational vehicles on Sunday. Used parts for vehicles may also be sold anywhere on Sunday.

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