What happens if I sell abandoned vehicle or vessel parts and do not get a dealer's license?

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

Towing agencies or custodians are exempt from obtaining a vehicle dealer's license if the vehicles they acquire at auctions are sold to licensed vehicle dealers.

It is possible; however, that you may be engaging in business practices for which a vehicle dealer license may be required or which may bring you within the penalty provisions of Section 257.248j.

Section 257.248j of the Michigan Vehicle Code provides that a person who has acted as a vehicle dealer without a dealer license may face a penalty of not more than $5,000 for a first violation and not more than $7,500 for each subsequent violation within seven years of a previous violation. You may wish to discuss the specific facts of your case with your attorney because of the substantial penalty.

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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