State of Michigan Licensing & Information

MADA is happy to help new car and truck dealers (Class A) with their State of Michigan licensing requirements. Please see the following for answers to some of the more common questions we hear from dealers. If you have a question that is not answered here, or if you would like assistance with any part of the process please call our office at (800) 292-1923.

Helpful Secretary of State links

Electronic Lien Titling
With the 2023 implementation of electronic lien titling (ELT), Michigan no longer issues paper titles for vehicles that have a lien. Instead, the lien is recorded electronically, and the lienholder holds the electronic title, which can be transferred to a paper title when the lien is released.

  • Customer Communication. Please provide this Michigan Department of State letter to a customer when they will have an electronic title.
  • ELT Best Practices. This PDF provides general best practices for dealers when utilizing the state’s ELT system.
  • Operational Overview Webinar. The Michigan Department of State presented this instructional webinar to MADA dealerships in 2023.

Sales Tax Trade-In Credit

Beginning January 1, 2026, owners trading in a motor vehicle receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $12,000. See MDOS notice and FAQ.

Also see this 2026 guidance from the Michigan Treasury regarding sales tax due when a non-Michigan resident takes delivery in Michigan but will register in another state.
 

Documentary Fee Maximum (DIFS)

January 28, 2025: the Documentary Preparation Fee has been adjusted to $280. DIFS has reviewed the documentary preparation fee adjustment and has determined the maximum shall be adjusted to $280.00, which reflects the cumulative percentage change in the consumer price index from the prior two calendar years.

Accordingly, the documentary preparation fee shall not exceed 5% of the cash price of the motor vehicle or $280.00, whichever is less.

Also see DIFS bulletin 2025-03-CF for information. DIFS will next review the maximum allowable doc fee amount in 2027.
 

Recreational Passport

Effective January 1, 2026, the cost of the Recreation Passport will increase by $1 as the result of a statute provision that ensures funding remains aligned with inflation. Additional information is available here.

  • Vehicles – one-year: $15 (2026)
  • Vehicles – two-year: $29 (2026)
  • Motorcycles: $7 (no change for 2026)

Customer Transaction Forms

TR-128 | Appointment of Agent form – if an individual purchasing a vehicle is not available to sign the RD-108 and completes an Appointment of Agent form to have an agent sign the RD-108 on their behalf, the purchaser must provide a photocopy of their valid Michigan driver’s license or state ID card.

TR-210 | Notice of Assignment of Secured Interest in a Vehicle – by completing this form, the purchaser authorizes the dealer to assume the loan and finance the vehicle if the initial secured interest listed on the original RD-108 decides not to finance the vehicle.

    • TR-209 | Notice of Rejection of Vehicle Financing – completion of the this form by the security party originally shown on dealer’s title application constitutes release of financial interest.  The selling dealer can then assume the loan.
 

Self-Guided Dealer Training

MDOS offers a self-guided, interactive, module-based training. There are many advantages to the self-guided training program versus the Microsoft Teams Live events, including the ability to access the training at your leisure, and the ability to pause training and return later. The self-guided training is accessed through the MI-TRAIN portal.

If your dealership has yet to create a MI-TRAIN account, please follow these instructions:  YouTube video link  |  PDF link

You must use your dealer’s name in the ‘first name’ field and your dealer number in the ‘last name’ field to ensure you receive credit.  Once an account has been created, utilize the ‘search’ icon and type in ‘Continued Education Dealer Training.’
 

What To Know About Licenses, Bonds & Dealer Plates

Applying for a new license: click here and review the information then call our office at (800) 292-1923 for personal assistance with all your licensing needs.

Vehicle dealer surety bond: Pursuant to MCL 257.248(2), dealers are required to have a valid bond in the amount of $25,000 in order to receive a license or renewal from the State of Michigan. It must be renewed each year.  Note: 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.

Renewing a license: click here for detailed information to help you renew your dealer, repair facility and installment seller licenses. 

License changes: click here for various guidelines and sample letters you can download to assist when making franchise or other changes at your dealership.

Wall licenses, renewal dates & dealer plates/tabs: the state sends license renewal applications approximately 45 days prior to the expiration date. Please be aware of your expiration dates to ensure your licenses are renewed on time.

  • Installment seller (finance) license – these wall licenses do not include an expiration date; they instead note an effective date.  The license remains active when renewed on time. Renewal licenses are no longer mailed unless changes are required. The installment seller renewal cycle is April – June.
  • Dealer license & plates – dealers will receive a new wall license upon renewal. All licenses expire on December 31 and multi-year renewal is an option. Dealer plates are renewed each year (with tabs) and remain active through the last day of February.
  • Repair facility licenses – repair facilities will receive a new wall license upon renewal. Repair facility licenses have varying renewal cycles. Check your license for the expiration date.

Dealer plates & tabs: additional/replacement plates: Dealers can report lost, stolen and missing plates within their CARS e-Services account (preferred method). To receive additional/replacement plates you may alternately complete Additional/Replacement Dealer Plates Application (AR-0036)
 

Temporary, Off-Site Sales

A temporary sale at a location away from the established place of business requires additional licensing. This includes a “tent sale,” auto show or activity in which vehicles may be displayed or sold for a specific length of time. To apply for a temporary sale in the same county, the following must be provided to the state at least 15 days prior to the sale:

  • Vehicle Dealer Supplemental Location Application, Form AR-0066 (link)
  • Michigan Vehicle Dealer Close Out Statement – Temporary Location form (link)
    • The Closeout Statement will be used to cancel the license once the temporary sale is over
  • Enclose either a franchise approval to sell new vehicles at the sale location, or self-certify that you have authorization to sell new vehicles at the sale location during the dates specified. If only selling used vehicles at the off-site location, you will need a letter signed by the owner stating that the dealership will only be selling used cars. **Sample letters**