Applying for a new license

MADA is happy to help with all your State of Michigan licensing needs. Please review the following information then call our office at (800) 292-1923 for personal assistance with all your licensing requirements.

Open a new dealership


Vehicle dealer surety bond

  • Pursuant to MCL 257.248(2), dealers are required to have a valid bond in the amount of $10,000 in order to receive a license or renewal from the State of Michigan. It must be renewed each year.
  • MADA, through its agent, Dealers Insurance Agency (DIA), and underwritten by Merchants Bonding Company, offers dealer surety bonds for a very low annual cost. This rate is also available to new car dealers who own an independent used car dealership.

Supplemental location license


Repair facility license


Installment seller (finance) license

  • Regulated by the Department of Insurance and Financial Services
  • Submit an Installment Seller License Application, along with a sample of each Sales Finance Company contract(s) you will be using. (Note: before entering data, please open this link and save the file to your desktop.  Once saved, open the desktop version.  This should allow you to save the data typed into the form.)
  • Sample letter to the state:

Articles of Incorporation

When applying for a new business name, you must file the articles with the Michigan Department of Licensing and Regulatory Affairs (LARA).  There will be a fee for this filing, made payable to the State of Michigan.