If you sell five or
more vehicles in a 12-month period, you may need a Class B dealer's license.
If you buy, sell, exchange, broker, lease or deal
in salvageable parts of five or more vehicles, you may need a Class C dealer's
license or Class D broker's license
Section 257.11 of the Michigan Vehicle Code
defines a "dealer" as a person who does one or more of the following in a
12-month period: (1) Engages in the business of purchasing, selling,
exchanging, brokering, leasing or dealing in vehicles of a type required to be
titled; (2) engages in the business of purchasing, selling, exchanging,
brokering or dealing in salvageable parts of five of more vehicles; (3) engages
in the business of buying five or more vehicles to sell vehicle parts or process
into scrap metal. The law creates a rebuttable presumption that a person who
buys and sells, exchanges, brokers, leases or deals in five or more vehicles in
a 12-month period is engaged in such a business.
You do not
need a dealer's license if the vehicles you acquire at auctions are sold to
licensed vehicle dealers.
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