Michigan Uniform Vehicle Dealer Bond |
AmeriPro Surety Bonds | 844-589-9732
Auto Dealer Bond – Michigan
In Michigan, according to state law, you are considered an auto dealer if you sale, negotiate, broker, lease, or negotiate the lease of 5 or more vehicles within a 12 month period.
The $10,000 Michigan uniform vehicle dealer bond (aka Michigan auto dealer bond) is required of the following persons:
- New car dealers (Class A);
- Used car dealers (Class B);
- Used vehicle parts dealer (Class C)
- Auto Broker (Class D)
AmeriPro Surety Bonds offers the Michigan auto dealer bond as both a first time or renewal surety bond.
Michigan Uniform Vehicle Dealer Bond: The Premium
The premium, or the cost to you, of the $10,000 Michigan uniform vehicle dealer bond will be determined by a surety application and a credit check.
The cost to you may therefore vary, but is typically between 1.5 – 2.00%.
As a broad general rule, an applicant with good credit may pay just above 1% annually for this bond; however, the amount that you will pay will be largely determined by your credit score.
AmeriPro Surety Bonds will work to find you the best surety bond pricing.
Duration of this Surety Bond
Once issued, your Michigan auto dealer bond will be active for one year. The bond will thereafter be required to be renewed.
The Michigan Secretary of State, Dealer Division requires auto dealerships to keep an active surety bond on file as a condition for continued licensing.
Michigan Uniform Vehicle Dealer Bond: Its Purpose
The purpose of your uniform vehicle dealer bond is this:
It is a financial guarantee on behalf of the state of Michigan to guarantee the reception of payment for:
- Sales taxes (Act 167 of the Public Act of 1933);
- And, Use taxes (Section 94 of the Public Acts of 1937, with emphasis Sections 205.91 and 205.111)
The bond therefore, protects the state and ensures that that taxes owed will be paid up to the bond’s face amount.
As principal of this surety bond, you legally shoulder liability for any claims paid against your bond. In the present instance, this would mean that you are liable to reimburse the surety for all costs and fees in the payment of any surety bond claim against your auto dealer bond — if such were ever the case.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout all of Michigan.
Our agency also provides surety bond nationwide.
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