Michigan motor vehicle dealer bonds.
$250 flat.
Also known as the Michigan auto dealer bond or car dealer bond.
Michigan requires Class A, B, and D vehicle dealers to file a $25,000 bond with the Secretary of State under MCL 257.248. Ours is $250 flat — set by our carrier for this bond, identical for every dealer. A quick soft credit check may apply and never affects your score; the bond is issued when you pay.
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How much does a Michigan motor vehicle dealer bond cost?
$250 at the $25,000 amount, the same for every applicant.
Three steps to licensed.
Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:
Apply once, online
Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.
Approved
Most are approved as soon as you apply. Any credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.
E-sign & file with the Secretary of State
Pay online and receive the executed Uniform Vehicle Dealer Surety Bond, ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the bond actually guarantees
Michigan licenses motor vehicle dealers through the Secretary of State and conditions a Class A, B, or D license on a $25,000 surety bond under MCL 257.248. The bond is a consumer-and-public-protection guarantee: it indemnifies a purchaser, seller, financing agency, or governmental agency against monetary loss from fraud, cheating, or misrepresentation in the conduct of the vehicle business.
It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of Michigan together with harmed buyers (the protected parties). The bond covers fraud, cheating, or misrepresentation whether committed by the dealer or by an employee, agent, or salesperson.
The amount rose from $10,000 to $25,000 effective January 23, 2023 for Class A, B, and D dealers. Several classes — used vehicle parts (C), distressed vehicle transporter (E), scrap (F), foreign salvage (G), recyclers (R), and wholesale (W) — are exempt from the surety bond requirement. It is not insurance for you — if the surety pays a claim, you repay the surety.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
E-sign & file with the Secretary of State. Pay online and receive the executed Uniform Vehicle Dealer Surety Bond, ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.
What sets the price
The premium is fixed at $250 at the $25,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual underwriting fields, including your consent to a soft credit check if one applies. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other Michigan bonds.
The same bond in nearby states.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
The Secretary of State is waiting on one document.
$250 flat, short application, bond issued when you pay. Free until issued.