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…
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 de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateMIBond amount$25,000ObligeeState of MichiganBond classLicense BondCategoryMotor VehicleBondMichigan New Motor Vehicle Dealer BondJurisdictionStatePlain descriptionThis 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 break…Who needs this bondClass 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…
