PA 495 Frequently Asked Questions - Updated 04/11/2005

What must a wholesaler do to maintain an established place of business?

Wholesalers maintain an established place of business by actually occupying a location where books and records are kept and a large share of the business is transacted.  Local zoning and municipal authority requirements apply.

A dealer's established place of business includes a place where:

• The Secretary of State can mail the dealer his or her dealer's license.

• Anyone can serve the dealer with process service by mail as permitted in the Michigan Court Rules.

• A customer can send a written complaint.

• The Secretary of State can schedule a meeting to review the records of the dealer.

Does a vehicle or motor home meet the definition of an established place of business? 

A motor home or any type of vehicle itself does not meet the definition of an established place of business.  An established place of business means occupying a location where books and records are kept and a large share of the business is transacted.  Dealers may transact a substantial portion of their business using their vehicle as a tool of the trade but must nonetheless maintain a bona fide established place of business. 

Can RV dealers participate in recreational vehicle shows in all Michigan counties without a supplemental license? 

RV dealers may participate in a recreational vehicle show conducted at a location in this state without obtaining a separate or supplemental license providing the duration of the recreational vehicle show is not more than 14 days. 14 days before the beginning date of the recreational vehicle show, the show producer must notify the secretary of state that the recreational vehicle show is scheduled and furnish the location, dates, and the name, address, and dealer license number of each dealer participating in the recreational vehicle show.

Can a used parts dealer holding a C or R license sell parts on Sunday?

The state law limiting Sunday sales does not apply to used parts dealers. Vehicle parts may be sold on Sunday.  

Has the law regulating Sunday sales changed?

No.  The only thing that changed under P.A. 495 is that the Secretary of State now has authority to take action against a dealer unlawfully operating on Sunday, including denial, suspension, or revocation of the dealer license.    

Will Sunday sales still be permitted in certain counties under the new public act?

Yes.  Sunday sales are permitted in counties having population fewer than 130,000 inhabitants according to the latest or each succeeding federal decennial census.

Can a dealer sell motorcycles on Sunday?

Yes.  Motorcycles can be sold on Sunday.

Can a dealer sell recreational vehicles on Sunday?

Yes.  Recreational vehicles can be sold on Sunday.

What meets the requirements of a working "restroom" under the new established place of business definition required for new and used vehicle dealers? 

This definition now requires a working restroom housed inside a permanently enclosed building or structure.   A working restroom clearly implies a sink and flush toilet that works.  A working restroom requires water that flows. 

May a wholesaler sell vehicles to friends and family members or participate in public auctions offering vehicles for sale by private owners?

No. Wholesalers may not buy, sell or otherwise deal in vehicles to a person other than a licensed vehicle dealer.

Are dealers currently holding a new or used vehicle dealer license "grand fathered" in and not required to meet the new established place of business requirements?

There is no grandfather clause in Public Act 495.  Currently licensed dealers who only engage in the business of wholesaling, and who do not meet the expanded established place of business requirements for class "a" and "b" vehicle dealers may apply for a new wholesaler's license classification with the 2006 license renewal cycle.  The expanded established place of business requirements for class "a" and "b" dealers do not apply to wholesalers. 

Can a wholesaler buy and sell salvage vehicles? 

No. Only class "C" or "R" vehicle dealers are licensed to buy or sell salvage vehicles through a licensed salvage vehicle agent.