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Dealers · licensing · Michigan

How to get a dealer license in Michigan.

What it takes to get a used car dealer license in Michigan, with a link to the official page for every fact.

Checked October 10, 2026 against the official pages linked below. Licensing agency: Michigan Department of State, Business Licensing Section.

The requirements

Licensing agency Michigan Department of State, Business Licensing Section · source
Surety bond (used dealer) $25,000 · source
Pre-licensing education Required (Class B used dealers) — prelicensure dealer training within 6 months before application for all owners/partners/officers; hours not stated · source
Place of business Permanently enclosed building with office >= 150 sq ft; display land >= 1,300 sq ft plus 650 sq ft customer parking; permanent exterior sign with dealership name; posted hours >= 30 hrs/week; registered repair facility on site or agreement within 10 miles; zoning/municipal approval and pre-license inspection · source
License fee $160 annual (Class B) · source

Steps

  1. Start with the licensing agency, Michigan Department of State, Business Licensing Section: read its dealer page and get the current application.
  2. Complete the pre-licensing education: (Class B used dealers) — prelicensure dealer training within 6 months before application for all owners/partners/officers; hours not stated.
  3. Set up your place of business: Permanently enclosed building with office >= 150 sq ft; display land >= 1,300 sq ft plus 650 sq ft customer parking; permanent exterior sign with dealership name; posted hours >= 30 hrs/week; registered repair facility on site or agreement within 10 miles; zoning/municipal approval and pre-license inspection.
  4. Buy a surety bond: $25,000.
  5. Submit the application with the fee: $160 annual (Class B).
  6. If you will finance your own deals, check the separate finance license below before your first contract.

Built from the facts above. Insurance, background checks and zoning rules may also apply; the agency's page has the full list.

Planning to finance your own deals?

Selling vehicles on installment sale contracts requires an installment seller license from the Department of Insurance and Financial Services. Source.

This is a summary, not legal advice. The agency's own page governs. All states