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Vehicles
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Do I need a dealer license to sell abandoned vehicles, and if so, what kind?
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Answer:
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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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