Do I need a dealer license to sell abandoned vehicles or vessels, and if so, what kind?

Please note: Vehicle includes motor vehicles, ORVs, and snowmobiles. Vessel includes watercraft.

If you sell five or more vehicles in a 12-month period, you may need a Class B vehicle 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 vehicle dealer's license or Class D vehicle 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 vehicle dealer's license if the vehicles you acquire at auctions are sold to licensed vehicle dealers.

Section 324.80102a of the Natural Resources Environmental Protection Act, as amended, defines a dealer as a person “who annually purchases from a manufacturer, or who is engaged in selling or manufacturing, 6 or more vessels that require certificates of number.” Unlike with vehicle dealers, watercraft dealers are not licensed by the Department.
 

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