Michigan Auction License

Michigan Auction License

You may wonder whether you are to have a Michigan Auction License, as for the other states, for selling automobiles. Well, in case you want to sell more than five cars during a twelve-month period, then you definitely need one.

Requirements Needed

Naturally, the first thing that you are to do is to complete the application form. If you go by the link you’ll not only have the form to fill out but also all the information described in the microcosm.

After this, you are to secure a place for your future enterprise. You have to submit a bunch of documents and articles that the state has filed concerning your corporation creation.

You are to get fingerprinted. After that, you are to show the signed receipt to the commission. Of course, to complete the process, you are to pay all the necessary fees.

There are different classes of certificates (See below). For example, for class:

  • A, you are to show the franchise agreement that you have signed with the producer,
  • A and B, you are to provide the commission with a form of vendor selection, you are also to present a document proving that you have a registered facility for repairing,
  • A and B, you have to have 2 plates,
  • A, B, and D, you are to buy a bond that costs $10,000,
  • A, B, and W, you ought to show no-fault fleet insurance,
  • C and R, do not forget to submit a copy that will detail the data on the compensation insurance of your workers or the notice of exclusion.


Here we’ll go into detail and say that the place should be used not only for sales purposes. There must be a bathroom and a furnished office of 150 square feet. The display area is to be a minimum of 1,300 square feet. The parking area should be 650 square feet.

There should be enough space for storing all the documents of your company. The latter should also have a registered telephone number. It must collect its weekly working hours properly.

Types of the Michigan Auction License

The types are different. They refer to the sellers who have different intentions regarding their corporation. It may be brought down to the following groups:

  • A, which is for new vehicle traders,
  • B, which is for used vehicle traders,
  • C, which is for used car parts traders,
  • D, which is for motor auto brokers,
  • E, which is for distressed transporters,
  • F, which is for scrap metal processors,
  • G, which is for salvage pool dealers,
  • H, which is for foreign salvage car dealers,
  • R, which is for automotive recyclers,
  • W, which is for wholesale vendors.

How to Apply For Michigan Auction License

Now that you know the conditions, you are ready to apply. So, for that, first of all, you are to determine the type.

In case you plan to operate your enterprise based on several kinds described below, then you must receive permission for each one. The next step refers to the location. The article has covered this point in the requirement section.

You should choose a sign for the company, attend the special classes and present a surety bond. Thus, after you complete all the steps and meet the conditions, submit the package of the address specified in the end of the article.

The packet is to contain your fingerprints, sales tax number, and municipal agreement. Present the franchise agreement if you want to get a Class A certificate.

The form for the designated branch office as well as a minimum of two dealer plates should be delivered. If there is no repair facility registered, then you should also present servicing agreement.


With the application, you should submit the fee which is $75. There is an extra cost for each plate. The latter is $10. As for the bond, the costs vary. It depends on your credit score. It may start from $100 to $300 and $10,000.

Mailing Address

MI Department of State
Business Licensing Section
Lansing, MI 48918

Mary T

Mary T

Mary is a translator/interpreter by profession. She is an experienced translator and though translation/interpretation is her passion and she pictures herself in that area, content writing is of particular interest to her. She has cooperated with many different organizations and has written contents on various topics. She places all her skills and ken into her writings to provide the reader with a quality content to read and enjoy. She loves to study, gain new knowledge and share it with those who are eager to learn and enrich their outline, so content writing is the right field for her to operate. The scope of her interests is large, she wants to challenge herself, aspiring for the best. She also is passionate about creative writing and is trying to do her first steps into the literary world. She is also a creative writer with her unique style and interesting point of view.