Classic Car Dealers in Michigan

In Michigan the Department of State handles titles and registration through its Secretary of State offices, and the 6% tax is collected there when you transfer the title. Two Michigan habits catch out out-of-state buyers: the plate stays with the seller, and the clock for transferring the title is only 15 days.

Titling the car

You have 15 days from the sale to transfer the title. After that a $15 late fee applies on top of the $15 title transfer fee and the registration fee, and the state can repossess the plates. In a private sale the seller must hand over the original title, not a photocopy, with the odometer reading, the seller's name, address and signature, and your name and address filled in. If more than one owner is named, all of them must sign, and the VIN and mileage on the title must match the car. A lien needs a termination from the lender. Everyone who will be on the new title goes to the Secretary of State office; a seller who cannot come can sign the title in advance, and simple one-seller, one-buyer transfers of Michigan paper titles can be done online.

The seller removes the plate before you take the car. You may drive it home without a plate for three days, going straight to where it will be kept, with the signed title and proof of insurance in the car. Registering the car takes Michigan No-Fault insurance, and for cars older than 1984 the registration fee is based on the vehicle's weight. Buying from a licensed dealer, the dealer normally handles the paperwork and must file the title application within 21 days. For a used car the dealer must also show you the previous owner's title.

If the seller has no title, the law lets the Secretary of State require a surety bond of twice the car's value before titling a vehicle worth more than $2,500 when ownership is in doubt. For a car worth $2,500 or less and at least 10 years old, the applicant certifies ownership instead.

Cars from other states

An out-of-state title is converted at a Secretary of State office with the old title, your ID, Michigan No-Fault insurance, the old registration if the car was registered, and a lien termination if there was a loan. A rebuilt, salvage, scrap or flood brand from another state is carried onto the Michigan title. If a lender in another state holds the title, Michigan issues a registration marked foreign ownership, registration only, and the out-of-state title remains the ownership document.

Historical and authentic plates

• Historical plates are for cars at least 26 years old (the current year minus the model year) that are owned solely as collector's items. Use is limited to club activities, parades, car shows and similar events, not routine transportation, though the limit is suspended from Memorial Day to Labor Day. The plate costs $30, or $150 personalized, and you apply with form BDVR-96, proof of ownership and Michigan No-Fault insurance. Under the statute the registration runs up to ten years.
• You certify the car is safe. The application includes a statement that the vehicle has been inspected and found safe to operate on the highways, and the state can revoke the registration if the car is used for other purposes.
• Authentic plates are original-style Michigan plates of the car's own year, $35, ordered by mail only, and they cannot be personalized. Reproduction plates and legacy replicas do not qualify.
• Plates do not pass to the buyer. The seller keeps the plate (the exception is a sale to an immediate family member), so a buyer applies for a new historical registration.

Inspections

The Department of State's title and registration steps list no emissions test and no safety inspection. Inspections do apply to rebuilt salvage cars, which need a salvage vehicle inspector, and to assembled and kit cars, which need a police inspection and a Department of State inspection.

Sales tax

• The rate is 6% statewide with no local add-on, collected by the Secretary of State at titling. Private sales are taxed too, on the greater of the price paid or the car's retail value, and Treasury makes the final call on what is owed.
• The 2026 trade-in allowance is the lesser of $12,000 or the agreed trade value, and it applies only when you buy from a licensed dealer, not from a private seller.
• No tax is due on transfers between close relatives such as a spouse, parent, child or sibling. Treasury can ask for proof, and false claims carry penalties.
• A car bought out of state and brought to Michigan within 90 days is presumed taxable here. Tax already paid to another state can be credited, depending on that state's rules.

Dealers, private sellers and "as is"

Anyone dealing in five or more vehicles in 12 months needs a dealer license, and licensed dealers carry a $25,000 bond. The Attorney General notes that many used cars are sold as is, which means problems after the sale become your problem even if they existed before. Michigan's lemon law covers vehicles under a manufacturer's warranty, so a classic is generally outside it. The state advises a mechanic's inspection and a title history report through the National Motor Vehicle Title Information System before you buy. A rebuilt salvage title is branded and stays branded on every later title.

Checking a dealer

Anyone buying and selling five or more vehicles a year must be licensed by the Department of State. Licensed dealers are listed in the Department's online services under Vehicle Services, Business Services, Dealer Services and Find a Dealer, and the listings are updated daily. With a complaint, the Department suggests talking to the dealership's manager first and then filing a complaint with the Department of State.

The Woodward Dream Cruise and Michigan rust

The Woodward Dream Cruise began in Ferndale in 1995 as a fundraiser and now runs from 9 a.m. to 9 p.m. on the third Saturday of August through nine Oakland County communities: Ferndale, Pleasant Ridge, Huntington Woods, Royal Oak, Berkley, Birmingham, Bloomfield Hills, Bloomfield Township and Pontiac. It is a good day to see a wide range of classics in one place; buy on your own timetable, after an inspection.

Michigan cars live with road salt. Look under the car for rust in the floors, trunk pan, rocker panels, frame rails and the bottoms of doors and fenders, and ask how it was stored in winter. The Attorney General recommends an independent mechanic's inspection even when a car comes with a warranty, and notes that a vehicle history report may list accidents and flood damage but usually not mechanical problems.

Sources: Michigan Department of State (title transfer, titles, buying a vehicle, historical and authentic plates), Michigan Department of Treasury (use tax, form 485), Michigan Attorney General (before buying a used car), the Department of State dealer FAQ, the Woodward Dream Cruise organizers and the Michigan Compiled Laws (Vehicle Code 257, Use Tax Act 205). Rules and fees change; confirm with a Secretary of State office before you buy.