Michigan Auto Law FAQ
Written disclosure of damage and repairs is required when a new vehicle dealer is selling a new or demonstrator vehicle that has been damaged and repaired, and: (1) the dealer has knowledge of the damage and repairs to the new vehicle; and, (2) the cost of the cumulative repairs – calculated at the rate of the dealer’s authorized warranty rate for labor and parts – exceeds either (a) 5% of the MSRP of the vehicle, or (b) $750 in surface-coating repairs or corrosion protection restoration, or a combination of these items.
Important Note: A disclosure statement is not required for any damage or repair of glass, tires, wheels, bumpers, audio equipment, in-dash components or components contained in the living quarters of a motor home.
In the same county: A dealer license authorizes the dealer to conduct business at a principal place of business in a particular county. Additional locations in the same county can be licensed as supplemental locations, at no fee, if the same activities will be conducted. A dealer may have as many supplemental locations as desired, but each location must qualify and be licensed by the Michigan Department of State.
In a different county: A separate dealer license is required if a dealer sells at retail in another county or establishes a place of business in another county. No temporary sales locations are permitted outside the dealer’s county of licensure.
DEALER PLATES AND DEMOS
A person driving on dealer plates should have: (1) ownership document, (2) proof of insurance , (3) written authorization to drive the vehicle, with a date included on the document, and (4) Dealer’s business card.
It is appropriate to place dealer plates on: (1) Dealer-owned vehicles being driven to and from repair facilities, storage lots, and other locations where vehicles are being held prior to sale; (2) Dealer-owned vehicles being moved to locations where they may be bought or sold; (3) Dealer-owned vehicles driven by employees, servants, or agents of the dealership for any use except as a service vehicle; (4) Dealer-owned vehicles may be driven by a prospective customer of a dealership for testing or demonstration purposes for up to 72 hours; and (5) A person who has purchased a vehicle from a dealership may operate the vehicle with a dealer plate for up to 72 hours after taking delivery of the vehicle.
VEHICLE SALES TO MINORS
It is unlawful to knowingly sell a motor vehicle to an unemancipated minor without written permission from a parent or legal guardian. An unemancipated minor is a person under age 18 whose actions are the responsibility of the minor’s parents or legal guardian.