Buying, selling, or leasing

Operating a vehicle

To drive a vehicle on public roads in Michigan: 

• It must be registered with a license plate and tab 
• Have an assigned vehicle title 
• Be insured with Michigan No-Fault insurance.  

Information about license plates

You may request:

• current ownership
• a complete history,
• or a partial history of a vehicle for specified dates, if you have a legally valid reason for doing so
  
  

Vehicle records

Inspect the vehicle  

• New vehicles 
  • Make sure all equipment and options ordered have been included.  
• Used vehicles 
  • Have it inspected by a mechanic before purchasing.
  • Get a vehicle history report from an approved National Motor Vehicle Title Information System Data Provider.  
• Information for consumers
  • NMVTIS for general public and consumers 
  • Check NMVTIS Before You Buy! brochure 
  • Check NMVTIS Before You Buy! video
  • Approved NMVTIS data providers  

Review the title 

• Seller must give you the original vehicle title, not a photocopy.  
• Seller must complete the odometer statement.   
• Seller must complete the seller’s information and sign the title.  
• If there is more than one owner on the title, all the owners must sign it before it can be transferred into your name.  
• The odometer reading on the title must match the mileage displayed on the vehicle’s odometer.  
• The vehicle identification number, also called the VIN, listed on the title, must match the VIN found on the vehicle.  
• Making changes, such as crossing out a name, invalidates the title.  

Buying a used vehicle shouldn’t be a “crapshoot.” Don’t risk your hard-earned dollars on a used vehicle you know nothing about. Check with the National Motor Vehicle Title Information System (NMVTIS) for a title history on any used vehicle you are considering buying.

NMVTIS is designed to protect consumers from fraud and unsafe vehicles and to keep stolen vehicles from being resold. Federal law requires all states, insurance carriers, and junk and salvage yards to provide NMVTIS with important vehicle information, such as odometer readings, use and condition reports, and whether vehicles are determined to be salvaged or totaled. The NMVTIS database is provided to companies that have been approved as NMVTIS Data Providers. Customers visiting an authorized data provider website can request a vehicle history for a small fee, secure in the knowledge that the information they receive is complete and sanctioned by the U.S. Department of Justice.

• NMVTIS for general public and consumers
• Check NMVTIS Before You Buy! brochure
• Check NMVTIS Before You Buy! video
• Approved NMVTIS data providers

Most dealerships handle all paperwork, required documents, and collection of 6% sales tax, which means you won’t need to visit a Secretary of State office. If you have questions about your vehicle title and registration, contact your dealer first.   

Dealers are responsible for:

• Providing all necessary forms and ownership documents. For used vehicles, the dealer must show you the previous owner's title and allow you to examine it. 
• Collecting the necessary fees and taxes 
• Filing the title application with the Michigan Department of State or at a Secretary of State office within 21 days from the date of delivery 
• Handling the purchase or transfer of your license plate 
• Providing copies of all paperwork and giving you copies of each document you sign. You should get copies of the following: 
  • Application for Michigan Title - Statement of Vehicle Sale RD-108 
  • Any written warranty on the vehicle or any services purchased such as rustproofing or an extended service contract. 
  • Odometer mileage statement for vehicles  
  • Buyer's Guide window sticker (if buying a used vehicle) 
  • Finance contract lease agreement  
• Provide you with your new license plate and registration. 
• If you're purchasing a new plate, a 30-day temporary registration affixed to the rear window.  
• If you're transferring a plate, this will be noted on your Application for a Michigan Title.

Buyer and seller are responsible for handling all required documents to transfer ownership. To transfer ownership, you will need: 

• Original title with:  
  • Complete and accurate odometer reading or mileage statement 
  • Seller’s portion completed 
  • Seller’s signature 
• Proof of Michigan No-Fault insurance 
• Driver’s license or ID for both the buyer and the seller 
• Transfer the title within 15 days from the date of sale. 
• Seller must complete the seller’s portion of the title, sign the title, and complete the odometer disclosure statement. 
• Seller should keep a copy of the title and record of the sale for at least 18 months. Under Michigan law, sellers with proof of sale are not liable for any damages or a violation of the law if the title isn’t transferred. 
• Seller removes their license plate: Unless you’re transferring your license plate to an immediate family member, you must remove it from your vehicle during the sale. 
• Check that there isn’t a lien against the vehicle. If there is, the seller will need to provide a lien termination statement or the title signed by the lienholder. 
• Apply for a new plate, vehicle registration, and tab or transfer a plate you already own to the vehicle.  
• Pay all title and registration fees and payment for 6% sales tax. Once issued, immediately put your tab and license plate on your vehicle. 
• After the sale
  • Your corrected title will be mailed to you or, if there’s a loan against the vehicle, your lienholder.
  • If your lienholder is enrolled in the Electronic Lien and Title System (ELT), an electronic copy will be stored with the lienholder and the Michigan Department of State. 

Schedule an office visit

Title transfer 

Plate transfer   

• All of the conditions for buying a vehicle in a private sale also apply when buying, inheriting, or being gifted a vehicle from a family member.  
• No tax is due if you purchase or acquire a vehicle from an immediate family member.  
• Immediate family is a: 
  • Spouse 
  • Parent, natural or adoptive.  
  • Brother or sister includes half-brother and half-sister.  
  • Child, natural or adopted.  
  • Father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandchild-in-law 
  • Stepparent, stepbrother, stepsister, or stepchild. For tax purposes, a step-relationship ends after divorce.  
  • Grandparent or grandchild 
  • Legal ward, or legally appointed guardian with a certified letter of guardianship.
• You can transfer a plate from these relatives during a vehicle sale.   

Schedule an office visit

Information about titles  

Plate transfer

To switch the out-of-state title to a Michigan title and register the vehicle, visit a Secretary of State office with the following: 

• Out-of-state vehicle title 
• Driver’s license or ID 
• Michigan No-Fault insurance  
• Out-of-state vehicle registration if it was registered in another state 
• Lien termination statement or title signed by the institution issuing a loan if there is a lien. 
• If the title is held by out-of-state lienholder you will also need one of the following:  
  • Photocopy or fax of your out-of-state title 
  • Memo title 
  • Recently validated title application 
  • Vehicle record printed on the issuing state's Department of Motor Vehicles letterhead verifying the vehicle is titled in that state 
  • The Secretary of State can issue you a limited memo registration but will not convert it to a Michigan title. The out-of-state title will continue to be your ownership document. 

Schedule an office visit 

Information about titles  

• Must meet U.S. federal standards set by the Environmental Protection Agency (EPA) and Department of Transportation (DOT) to be imported. 
• Manufacturer’s Certificate of Origin (MCO) indicates if the vehicle was manufactured to these standards. 
• Must be imported by a certified importer, who will convert the odometer reading to miles and arrange custom duties.

Documents required for import:  

• Vehicle title and ownership documents 
• U.S. Customs and Border Protection "Entry Summary" CBP 7501 form with a stamp  
• U.S. Department of Transportation (DOT) form HS 7  
• U.S. Environmental Protection Agency (EPA) form 3520-1 
• Driver’s license or ID 
• Michigan No-Fault insurance 
• U.S. Customs and Border Protection Entry Summary (CPB-7501)
  
  

U.S. Customs and Boarder Protection Entry Summary (CPB-7501) 

• Make sure all the terms of the lease are in writing, that you understand the terms of the lease and that you agree with the terms.  
• Leasing may involve additional costs for excess mileage, early termination, or excess wear and tear. 
• When leasing a vehicle, you have the right to: 
  • Use it for an agreed-upon number of months and miles 
  • Turn it in at lease end, pay any end-of-lease fees and charges, and "walk away" 
  • Buy the vehicle if you have a purchase option 
  • Take advantage of any warranties, recalls, or other services that apply to the vehicle 
• While leasing the vehicle, you may be responsible for: 
  • Excess mileage charges when you return the vehicle: Your lease agreement will tell you how many miles you can drive before you must pay for extra miles and how much the per-mile charge will be. 
  • Excess wear charges when you return the vehicle: The standards for excess wear, such as for body damage or worn tires, are in your lease agreement. 
  • Substantial payments if you end the lease early: The earlier you end the lease, the greater these charges are likely to be.  
    
    

Consumer’s Guide to Vehicle Leasing