PA 495 Frequently Asked Questions (02/07/2005)

How do I obtain a dealer license in another county for a temporary sale?

PA 495 permits issuance of a dealer license for a temporary sale only in the same county as the dealer's established place of business.

May a dealer combine space and resources with another dealer to meet the minimum established place of business requirements for a used vehicle dealer?

No.  Each licensed new or used dealer must meet the established place of business requirements.  PA 495 carries no provision for dealers to pool resources to meet the requirements of an established place of business.

Will a cell phone qualify as a working listed telephone in the name of the business?

A cell phone is permissible providing it is a working telephone listed in the name of the business on the dealer's license and listed through a publicly accessible phone directory.

What other licenses is the wholesaler license compatible with?

A wholesale vehicle dealer license is compatible with a used or secondhand vehicle parts dealer (C) or automotive recycler (R).

Will new and used vehicle dealers need a wholesaler's license?

No.  A separate wholesaler's license will not be required for new and used vehicle dealers to perform wholesale transactions.

What if I apply for a used vehicle dealer license and do not meet the established place of business requirements?

All applications for a new or used vehicle dealer's license received by the Secretary of State after January 30, 2005 must provide evidence the business meets the expanded established place of business requirements.  Applicants seeking a new or used vehicle dealer license, who do not meet the new established place of business requirements, may apply for a wholesale vehicle dealer license as of April 1, 2005.

How much does a wholesaler license cost?

$75.  The cost is the same as a new or used vehicle dealer license.

Are the bonding requirements the same for wholesalers?

No.  Surety bond requirements only apply to new and used vehicle dealers, and brokers.

Is a wholesaler eligible for dealer plates?

Yes.

How many retail sales may a wholesaler transact within a 12-month period?

None.  Wholesalers are not authorized to sell vehicles to retail customers.

How do wholesalers obtain resale titles?

If the wholesaler is the last assignee on the title or other ownership document and no blank assignments remain, the dealer must obtain a resale title prior to sale of the vehicle to another dealer.  A wholesaler will submit a properly completed RD-108 Application for Title and Registration to the Secretary of State branch office for a resale title.

Regularly check the Secretary of State Web site for future dealer bulletins and newsletters.  More detailed information regarding PA 495 will be published on the Secretary of State Web site in the future.  Dealer information can be found on the Secretary of State Web site by clicking on "Services to Businesses" at  www.michigan.gov/sos .