Vehicle Sales and Service Involving Minors
It’s important to keep in mind the legal considerations when working with minors in both sales and service transactions.
Contracts: Under Michigan law, contracts entered into with individuals under the age of 18 are generally not enforceable. This means that a minor can void a vehicle purchase agreement, potentially requiring the dealership to accept a vehicle return and issue a refund. (Although legally emancipated minors may enter into contracts, these situations can be complex.)
Purchase Policy: Dealers are advised to require that a responsible adult – typically a parent or guardian – serve as the purchaser or co-purchaser. This adult should sign all relevant documents, including the buyer’s order, lease or rental agreement, and any financing paperwork. This policy should apply if the vehicle is paid fully in cash or financed.
Warranty and Budget Vehicles: Minors often show interest in lower-priced used vehicles. If a vehicle is being sold “as-is” or with limited warranty coverage, ensure that the terms are clearly explained and acknowledged in writing. An adult co-purchaser should also sign off on all sale documents to reinforce understanding and responsibility.
Service and Repairs: The same legal considerations apply in your service department. A minor cannot legally authorize costly repairs on their own. To avoid disputes or non-payment, ensure that a parent or other responsible adult is present to authorize repairs and sign any associated service agreements.
If you have further questions please call MADA at (800) 292-1923.
Reviewed: 06/2025
