Michigan Motor Vehicle Dealer Bond
Overview
Michigan raised its dealer bond in 2023, and the current figure comes straight from the Michigan Vehicle Code. MCL 257.248 requires dealer license applicants to file a properly executed surety bond — and the statute now states plainly that 'the bond must be in the amount of $25,000,' an increase that took effect January 23, 2023 from the long-standing $10,000 requirement. The Michigan Department of State will not issue or renew the affected dealer license classes without the bond on file.
Who Needs This Bond?
Dealers licensed by the Michigan Department of State under the Michigan Vehicle Code file this bond with their license application or renewal — that includes new vehicle dealers, used vehicle dealers, and brokers in the dealer classes the Secretary of State designates for bonding. If you received a dealer license packet from the Michigan Department of State listing a surety bond among the requirements, this is the bond, and the amount is the post-2023 figure of $25,000.
What is this Bond For?
The bond is Michigan's financial guarantee that a licensed dealer will meet the obligations the Vehicle Code imposes — delivering good title, properly handling taxes and fees collected in vehicle transactions, and dealing lawfully with buyers. When a dealer's violation of those obligations causes a monetary loss, the bond is a source of recovery for the harmed party, and the dealer must repay the surety for any claim paid on its behalf.
When is it Required?
File the executed bond with your dealer license application — MCL 257.248 makes it part of the application the Secretary of State acts on, so licensing simply doesn't proceed without it. The bond must then stay continuously in force through every renewal for as long as you hold the license. Dealers whose bonds were written at the old $10,000 figure needed to move to $25,000 when the statutory change took effect on January 23, 2023.
Where Does it Apply?
This is a statewide Michigan requirement administered by the Michigan Department of State, which licenses vehicle dealers under the Michigan Vehicle Code (Act 300 of 1949). It applies to covered dealer classes at licensed locations throughout Michigan, because the obligation comes from state statute rather than any county or municipal rule.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Michigan dealer bond is ready to file with the Department of State as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the Michigan Compiled Laws in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond to you in time for your Department of State filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- Surety bond required with dealer license application; bond must be in the amount of $25,000 (effective January 23, 2023): Michigan Compiled Laws §257.248 (verified July 16, 2026)