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License Bond

Michigan Uniform Vehicle Dealer Surety Bond

New vehicle dealers (Class A), Used vehicle dealers (Class B), and Vehicle brokers (Class D) who buy, sell, broker, or lease 5 or more vehicles in a 12-month period. Required when: Applying for or renewing a vehicle dealer license. Exemptions: Class C (Used Vehicle Parts Dealer), E (Distressed Vehicle Transporter), F …

Overview

What it is.

New vehicle dealers (Class A), Used vehicle dealers (Class B), and Vehicle brokers (Class D) who buy, sell, broker, or lease 5 or more vehicles in a 12-month period. Required when: Applying for or renewing a vehicle dealer license. Exemptions: Class C (Used Vehicle Parts Dealer), E (Distressed Vehicle Transporter), F …

Who usually needs it

New vehicle dealers (Class A), Used vehicle dealers (Class B), and Vehicle brokers (Class D) who buy, sell, broker, or lease 5 or more vehicles in a 12-month period.

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.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. 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.

Details

Bond details.

StateMI
Bond amount$25,000
Term lengthContinuous
ObligeeMichigan Department of State, Business Licensing Section
RenewalThe bond remains in effect continuously; however, a bond renewal certificate or rider amendment may be required at the time of license renewal to confirm coverage or reflect changes in the required bond amount.
Bond classLicense Bond
CategoryMotor Vehicle
BondMichigan Uniform Vehicle Dealer Surety Bond
Statutory referenceMichigan Vehicle Code Section 257.248 (MCL 257.248)
JurisdictionState
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Next step

Ready to move forward?

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.