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Michigan New Motor Vehicle Dealer Bond

This bond is required for anyone who wants to open or operate a new car dealership in Michigan. The State of Michigan requires this $25,000 bond to protect consumers who buy vehicles from the dealer. If the dealer breaks state laws, engages in fraud, or fails to meet their legal obligations to customers, people can fi…

Bond amount$25,000
State or jurisdictionMichigan
ObligeeState of Michigan

Essential point: Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.

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Overview

What it is.

This bond is required for anyone who wants to open or operate a new car dealership in Michigan. The State of Michigan requires this $25,000 bond to protect consumers who buy vehicles from the dealer. If the dealer breaks state laws, engages in fraud, or fails to meet their legal obligations to customers, people can fi…

Who usually needs it

Class A dealers (new motor vehicle dealers), Class B dealers (used vehicle dealers), and Class D dealers (secondhand vehicle dealers) who are licensed by the Michigan Secretary of State and typically sell or wholesale 5 or more vehicles within a 12-month period under Michigan Vehicle Code Section 257.248. This $25,000 bond is required for initial licensing,…

Pricing & timing

What to expect.

Generic pricing

License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher depending on the specific bond type, state program, or underwriting requirements.

Your quote determines the actual premium.

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Timing can change when underwriting needs more information.
Application details

How it works.

  1. Start the application

    Confirm the bond and provide applicant and business details.

  2. Review the quote

    See the terms and premium before deciding to continue.

  3. Pay and sign

    Complete the required payment and signatures.

  4. Receive the bond

    Get the issued bond and filing or delivery instructions.

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Next step

Ready to move forward?

Start the secure application with this bond already selected, or ask Ava a question before you begin.

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