Everything you need to know about obtaining a auto dealer license in Ann Arbor, Michigan — requirements, costs, timeline, and application process.
Updated as of May 2026State motor-vehicle department license required to buy, sell, or trade vehicles for profit beyond personal-use limits. Typically includes separate tiers for new, used, and wholesale dealers.
Michigan consolidated business licensing under LARA.
In Ann Arbor, fees for a Dealer License generally range from $300 to $2500, which is near the national average.
Whether you're starting a new business or expanding into Ann Arbor's Washtenaw County area, understanding the local permitting process is essential to operating legally and avoiding fines.
To obtain a auto dealer license in Ann Arbor, MI, you will typically need to provide the following:
You may also need to complete registration with the Michigan LARA at michigan.gov/lara.
Before applying, verify your business location in Ann Arbor's Washtenaw County is properly zoned for your intended use. Contact the Ann Arbor planning department for a zoning verification letter.
Collect all necessary paperwork including permanent business location that passes zoning, dealer surety bond ($10,000-$100,000 depending on state), garage liability insurance. Having everything assembled before you start the application avoids the most common rejection reasons.
File your auto dealer license application with the Ann Arbor city clerk or licensing department. Many Michigan municipalities now accept online applications, which can shave a week off processing time.
Submit payment of $300–$2500 (typical range for Ann Arbor). Fees may vary based on your business type, size, and the specific license tier you're applying for.
Processing typically takes 4-10 weeks in Ann Arbor. Smaller municipalities often approve sooner during off-peak periods — sometimes in half the published time.
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The typical cost for a Auto Dealer License in Ann Arbor ranges from $300 to $2500. Fees vary based on your business type, size, and Ann Arbor's specific municipal requirements. Contact the Ann Arbor city clerk's office for exact current fees.
Processing time for a Auto Dealer License in Ann Arbor is typically 4-10 weeks. Smaller municipalities often process applications faster than the state average.
To apply for a Auto Dealer License in Ann Arbor, you'll generally need: Permanent business location that passes zoning, Dealer surety bond ($10,000-$100,000 depending on state), Garage liability insurance, Dealer education/pre-licensing course, Background check and financial statements. You may also need to register with the Michigan LARA. Contact Ann Arbor's licensing department for the complete checklist.
Yes, a Auto Dealer License in Ann Arbor requires annual renewal. Mark your calendar — most Michigan municipalities send renewal notices 30-60 days before expiration.
You can apply for a Auto Dealer License through the Ann Arbor city government offices, typically the city clerk or licensing department. For state-level requirements, visit michigan.gov/lara. Many Michigan cities now offer online application portals.
The information on this page is sourced from state and federal agencies. Always confirm current fees and requirements directly with the issuing authority before filing:
Most auto dealer license holders in Ann Arbor need one or more of the following permits as well:
Same license, different jurisdictions. Costs and timelines vary noticeably by city — these are the nearest comparables to Ann Arbor: