Motor Vehicle Sales Finance

The Department of Insurance and Financial Services issues motor vehicle installment seller licenses to persons engaged in the business of selling, offering for sale, hiring, or leasing motor vehicles under installment sale contracts or a legal successor in interest to that person. As used in this subdivision, "business" does not include an isolated sale.

The Department of Insurance and Financial Services issues motor vehicle sales finance licenses to persons engaged as principal, agent, or broker in the business of financing or soliciting the financing of installment sale contracts made between other parties, and includes the business of acquiring, investing in, or lending money or credit on the security of the retail seller's interest in such contracts whether by discount, purchase, or assignment of those contracts, or otherwise. The term does not include a person, financial institution, or sales finance company that takes assignments of, or an interest in, an aggregation of installment sale contracts only as security for bona fide commercial loans under which, in the absence of default or other bona fide breach of the loan contract, ownership of the contracts remains vested in the assignor and collection of payments on the contracts is made by the assignor, nor a person who purchases installment sale contracts from a sales finance company or a financial institution. The term includes a person, whether or not licensed under this act, who as a seller finances installment sale contracts for other sellers or sales finance companies. The term includes a financial institution.

Motor vehicle is a self-propelled device by which a person or property may be transported upon a public highway. Motor vehicle does not include tractors, motorcycles, trailers, semitrailers, power shovels, road machinery, agricultural machinery, and other machinery not designed primarily for highway transportation but which incidentally transports persons or property on a public highway. Motor vehicle also does not include devices that move upon or are guided by a track or travel through the air.


  • Motor Vehicle Installment Seller License
  • Motor Vehicle Sales Finance License


Motor Vehicle Sales Finance Act, Public Act 27 of 1950, as amended, (MCL 492.101 et seq).

Related Codes and Acts

  • Credit Reform Act
  • Michigan Lemon Law
  • Motor Vehicle Service and Repair Act


Consumer Finance Bulletins

  • Bulletin 2007-10-CF
  • Bulletin 2007-01-CF
  • Disclosure of Negative Equity on an Installment Sales Contract


 1.  Applicability

Any person conducting the activity stated above.

 2.  Pre-Application Requirements
  • Individuals using their personal name on the application do not have pre-application requirements before submitting the application.
  • Individuals doing business under an assumed name must first file the assumed name with their local county clerk's office before submitting the application.
  • Legal entities (corporations, limited liability companies, limited partnerships, etc.) must have prior approval from the Michigan Corporation Division to conduct business in Michigan prior to submitting the application.

Before applying for a motor vehicle installment seller license, first obtain a vehicle dealer license from the Michigan Secretary of State.

 3.  Application Submission Requirements

FIS 1028

 4.  Procedures and Time-Frame for Obtaining Approval

Up to 90 days

 5.  Operational Requirements

Annual renewal Amendment Filing for Name and Address Changes

 6.  Fees

Nonrefundable Annual License Fee

Installment Seller - $30.00
*This fee is nonrefundable and is required from all applicants making an initial application for a license. It is also required at the time of making a first application for a license after the suspension or revocation of a license.

Sales Finance Company

  • Non-Depository Main Office - $150.00
  • Non-Depository Branch Office - $75.00 each
  • Depository Main Office - $35.00
  • Depository Branch Office - $35.00 each
 7.  Appeal Process

Requesting a Hearing to Contest an Order

 8.  Public Input Opportunities

How to File a Complaint

E. Contact Information:

Contact Us

Creation/Revision Date:

October 30, 2013