How to Get a Dealer License in Michigan (2026)
In Michigan, dealers are licensed by Michigan Department of State (Business Licensing and Regulation Section). The bond is $25,000 (Class A/B/D dealer). State law sets a sales count that makes you a dealer; the exact wording is below. Every fact below links to the official page it came from.
Michigan dealer license facts
| Licensing agency | Michigan Department of State (Business Licensing and Regulation Section) |
|---|---|
| License name | Class B (Used Vehicle Dealer) · Class W (Wholesaler Vehicle License)source |
| Sales that trigger a license | Official threshold: 5 or more sales in a year. Official wording: “five or more vehicles in a 12-month period without a dealer license is operating as an unlicensed”source |
| Surety bond | $25,000 (Class A/B/D dealer)source |
| Application / license fees | Class B original license fee: $160source |
| Pre-licensing education | Each individual who is the applicant, a partner, or an officer of the applicant for an original Class B used vehicle dealer license must complete the prelicensure dealer training program in the 6-month period before applying.source |
| Place of business | A dealer's established place of business must include a building with an office of at least 150 square feet with standard office furniture, utilities and a restroom, an exterior sign permanently displaying the dealership name, an on-site (or within 10 miles) registered repair facility, and compliance with local zoning and municipal requirements.source |
| Wholesale-only license | Wholesalers (Class W) engage in the business of buying and selling used vehicles from and to licensed used vehicle dealers only.source |
| Last checked | 2026-09-24 |
Steps to get licensed in Michigan
- Pick the license. Michigan issues: Class B (Used Vehicle Dealer), Class W (Wholesaler Vehicle License). A wholesale-only license is available if you only sell to dealers.
- Set up the place of business. A dealer's established place of business must include a building with an office of at least 150 square feet with standard office furniture, utilities and a restroom, an exterior sign permanently displaying the dealership name, an on-site (or within 10 miles) registered repair facility, and compliance with local zoning and municipal requirements.
- Finish the required course. Each individual who is the applicant, a partner, or an officer of the applicant for an original Class B used vehicle dealer license must complete the prelicensure dealer training program in the 6-month period before applying.
- Buy the surety bond. Required amount: $25,000 (Class A/B/D dealer).
- Apply to Michigan Department of State (Business Licensing and Regulation Section). Published fees: Class B original license fee: $160.
Flipping without a license in Michigan
Official threshold: 5 or more sales in a year. Official wording: “five or more vehicles in a 12-month period without a dealer license is operating as an unlicensed”source Selling past that line without a license is curbstoning.
Michigan data on CarFlipIQ
FAQ
Who issues dealer licenses in Michigan?
Michigan Department of State (Business Licensing and Regulation Section) licenses motor vehicle dealers in Michigan. License types include: Class B (Used Vehicle Dealer), Class W (Wholesaler Vehicle License).
How many cars can I sell in Michigan without a dealer license?
Official threshold: 5 or more sales in a year. Official wording: "five or more vehicles in a 12-month period without a dealer license is operating as an unlicensed" Confirm how it applies to you with Michigan Department of State (Business Licensing and Regulation Section).
How much is the dealer bond in Michigan?
The Michigan dealer surety bond is $25,000 (Class A/B/D dealer). You pay a surety company a yearly premium, not the full bond amount.
How much does a dealer license cost in Michigan?
Published state fees: Class B original license fee: $160. Add the bond premium, insurance, and the cost of your place of business.
Do I need to take a course to get a Michigan dealer license?
Each individual who is the applicant, a partner, or an officer of the applicant for an original Class B used vehicle dealer license must complete the prelicensure dealer training program in the 6-month period before applying.
Is there a wholesale-only dealer license in Michigan?
Wholesalers (Class W) engage in the business of buying and selling used vehicles from and to licensed used vehicle dealers only.
Price Michigan cars before you buy them
Check any vehicle against live Michigan listings, then decide what to bid.
Not legal advice. Requirements change; confirm with Michigan Department of State (Business Licensing and Regulation Section) before you apply. Last checked 2026-09-24.