State guide — Michigan

How many cars can you sell in Michigan without a dealer license?

The number

Up to 4 vehicles in 12 months, titled in your name

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.

What counts as dealing in 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.

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.

The penalty for crossing the line

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 path over the line in Michigan

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.

Run your own numbers

The Am I Legal? checker applies Michigan's rule to your actual count, titling, and intent — in your browser, with nothing sent anywhere.

Quick answers

How many cars can I sell in Michigan without a dealer license?

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.

What is the penalty for selling cars without a dealer license in Michigan?

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).

Where can I verify Michigan's car-sale limit?

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.