How to Get a Dealer License in Michigan: Cost & Requirements

Last updated: August 11, 2026

Michigan charges every dealer class the same $160 a year — new, used, broker, wholesaler, recycler, scrap processor, all of them. The license itself is cheap; what shapes the decision is the $25,000 bond for retail and broker classes, a five-vehicle threshold, and a 30-day lapse rule that forces a completely new application if you miss the renewal window. One genuinely good deal: the state’s dealer training is free.

Pick Your Class First — They All Cost $160

Class	What it allows	Annual fee
Class A	New vehicle dealer, under a franchise agreement with the manufacturer	$160
Class B	Used vehicle dealer — buys and sells used vehicles	$160
Class C	Used vehicle parts dealer; may dismantle whole vehicles for parts	$160
Class D	Broker — brings buyer and seller together without holding title. Auctions need this class.	$160
Class E / F / G / H / R	Distressed vehicle transporter, scrap metal processor, salvage pool, foreign salvage dealer, automotive recycler	$160
Class W	Wholesaler — may deal only with licensed vehicle dealers, never the public	$160

The bond follows the class: Class A, B, and D dealers must maintain a $25,000 vehicle dealer surety bond under MCL 257.248.

What Michigan Actually Requires

• $25,000 surety bond for Class A, B, and D dealers.
• Fingerprints through the state’s identity vendor.
• Articles of Incorporation or assumed name filing for the business.
• Michigan No-Fault Fleet insurance — required for any dealer license that allows dealer plates.
• Zoning and municipal approval plus an established place of business, with requirements that vary by license class.
• Dealer plates — Class A and Class B must purchase a minimum of two. Additional plates are earned by inventory: one plate per five vehicles in highest inventory up to 400, then one per seven above that, capped at 100. Class W dealers start at one plate maximum.

Free Training — and a Deadline After You’re Licensed

Michigan runs its own dealer training covering the Vehicle Code, dealer functions, licensing, and e-Services. It is delivered virtually through Microsoft Teams at no cost, open to licensed dealers and their staff, with pre-registration through the Business Regulation Section.

The requirement most new dealers miss comes after licensing: every new Class B applicant must attend continuous education dealer training within 90 days of receiving the license, and once every 24 months after that. You may designate someone to attend on your behalf, but the clock does not care.

Do Not Let It Lapse

Michigan renews online through e-Services, and the penalty for drifting is unusually blunt: allow the license to lapse for more than 30 days and you must apply for a new license under MCL 257.248(8)(h). Dealers who have not renewed cannot operate, and Secretary of State offices will refuse transactions from expired dealers — so an oversight costs you the whole application over again, not a late fee.

Frequently Asked Questions

How many cars can I sell in Michigan without a dealer license?

Four. Michigan defines a dealer as a person or business that, within a 12-month period, engaged in the business of purchasing, selling, exchanging, brokering, leasing, or dealing in 5 or more vehicles required to be titled. The same 5-vehicle test applies to dealing in salvageable parts or buying vehicles to process into scrap.

How much does a Michigan dealer license cost?

$160 a year — every class from A through W pays the same annual fee. Class A and Class B dealers must also buy a minimum of two dealer plates, and Class A, B, and D dealers must maintain a $25,000 surety bond under MCL 257.248.

Is Michigan dealer training free?

Yes. The Secretary of State provides pre-licensing dealer training virtually through Microsoft Teams at no cost to licensed dealers and their staff, with pre-registration required through the Business Regulation Section. Separately, every new Class B applicant must attend continuous education training within 90 days of receiving the license and once every 24 months after that.

What happens if my Michigan dealer license lapses?

If you let the license lapse for more than 30 days you must apply for an entirely new license under MCL 257.248(8)(h). Dealers who have not renewed cannot operate, and Secretary of State offices will not accept transactions from dealers whose licenses have expired.

Taxes, registration, workers’ comp, and hiring are covered in our full guide to starting a business in Michigan.

Sources

Source	What It Covers
Michigan SOS — Vehicle Dealers	License classes and $160 fees, 5-vehicle dealer definition, application requirements, plate formulas, free training, 90-day continuing education, 30-day lapse rule
MCL 257.248	$25,000 dealer surety bond for new, used, and broker licenses