State guide — Michigan
A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more vehicles of a type required to be titled under the Michigan Vehicle Code in a 12-month period unless the person obtains a dealer license from the Secretary of State (MCL 257.248(5)); MCL 257.11 separately creates a rebuttable presumption that a person who in a 12-month period deals in 5 or more vehicles is engaged in business as a dealer.
A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more vehicles of a type required to be titled under the Michigan Vehicle Code in a 12-month period unless the person obtains a dealer license from the Secretary of State (MCL 257.248(5)); MCL 257.11 separately creates a rebuttable presumption that a person who in a 12-month period deals in 5 or more vehicles is engaged in business as a dealer.
The count is only half the law. Whatever your number, three things turn a private seller into an unlicensed dealer in practice: buying vehicles mainly to resell them, advertising or holding yourself out as a seller, and selling vehicles that were never titled in your name. That last one — title jumping — is illegal on its own in nearly every state, at any count, and it is the violation unlicensed sellers are actually caught on.
Administrative fine of not more than $5,000 for a first violation and not more than $7,500 for each subsequent violation within 7 years, for acting as a dealer without a license (MCL 257.248j — secondary source).
Source: MCL 257.248 (dealer license) and MCL 257.11 ("dealer" defined) — secondary republication (Justia) · Checked October 18, 2026. Compiled from secondary sources — confirm with Michigan Department of State (Secretary of State) — Dealer Services before acting.
The legal way past the limit is a dealer license from Michigan Department of State (Secretary of State) — Dealer Services — start at the official source: Michigan Department of State (Secretary of State) — Dealer Services. Our deep path data currently covers Texas, Florida, California, New York, Georgia, North Carolina, Ohio, and Illinois; Michigan's full path page rolls in as its requirement rows finish primary verification. The Dealer Playbook covers the eight deep states in full.
The Am I Legal? checker applies Michigan's rule to your actual count, titling, and intent — in your browser, with nothing sent anywhere.
Up to 4 vehicles in a 12-month period, under the rule cited on this page. A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more vehicles of a type required to be titled under the Michigan Vehicle Code in a 12-month period unless the person obtains a dealer license from the Secretary of State (MCL 257.248(5)); MCL 257.11 separately creates a rebuttable presumption that a person who in a 12-month period deals in 5 or more vehicles is engaged in business as a dealer.
Administrative fine of not more than $5,000 for a first violation and not more than $7,500 for each subsequent violation within 7 years, for acting as a dealer without a license (MCL 257.248j — secondary source).
The rule is cited on this page to MCL 257.248 (dealer license) and MCL 257.11 ("dealer" defined) — secondary republication (Justia). The licensing authority is Michigan Department of State (Secretary of State) — Dealer Services. Figures checked October 18, 2026.