Do You Need a License to Buy a Car at Auction in Michigan?

Buying cars at auction in Michigan can be a smart way to save money or find unique vehicles, whether you’re after a daily driver or a project car. But before placing a bid, it’s important to know how Michigan regulates who can buy certain types of vehicles. In many situations, especially when salvage or “distressed” titles are involved, you’ll need a license.

That said, AutoBidMaster makes it simple for everyday buyers to take part in Michigan’s dealer-only and salvage auctions legally, even without a dealer or salvage agent license. Let’s explore how the system works and how AutoBidMaster helps bridge the gap between public buyers and restricted auctions.

Understanding Michigan’s Auction Licensing Rules

Under Michigan Vehicle Code § 257.248, if you buy or sell five or more vehicles within a year, you are considered a dealer and must hold a state-issued license. However, things get more specific when we’re talking about salvage or distressed vehicles.

A distressed vehicle in Michigan is defined as a late-model car that’s been damaged to the point that repairs would cost 75% or more of its pre-damage value. These vehicles are categorized as salvage and can typically only be purchased by licensed entities—meaning dealers, automotive recyclers, or salvage vehicle agents.

If you want to buy such vehicles directly, you’d need a Salvage Vehicle Agent (SVA) license, which permits the purchase of distressed vehicles or major parts through auctions and salvage pools. Since this license is available only to approved businesses, public buyers can’t access these auctions on their own.

That’s where AutoBidMaster comes in.

How AutoBidMaster Helps Public Buyers

AutoBidMaster operates as a licensed broker, giving members legal access to Michigan’s dealer-only and salvage auctions. Instead of applying for a license yourself, you register with AutoBidMaster and place bids through the platform. AutoBidMaster’s licensed partners handle the transaction on your behalf, ensuring full compliance with Michigan regulations.

Here’s what the process looks like:

1. Create your account and choose a membership level that fits your needs.
2. Browse Michigan auctions to find the vehicle you want.
3. Place your bids directly through the AutoBidMaster interface.
4. Once you win, AutoBidMaster completes the purchase using its licensed access and transfers ownership to you.

This approach makes it possible for individuals, small businesses, and rebuilders to buy clean title or salvage vehicles without needing a dealer or agent license of their own.

Ready to start bidding? Register for free on AutoBidMaster and explore thousands of clean and salvage vehicles today.

Dealer-Only and Clean Title Auctions in Michigan

Michigan also holds dealer-only auctions that sell clean title vehicles. Typically, only licensed dealers with one of the following credentials can participate:

• Class A – New Vehicle Dealer
• Class B – Used Vehicle Dealer
• Class W – Wholesaler

To get licensed, you must meet several conditions, including registering a business property that meets zoning standards, obtaining insurance and a bond, and passing a background check.

If that sounds like a lot of red tape, AutoBidMaster’s platform offers an easier route. Many listings available through AutoBidMaster are open to the public, while others labeled as “Dealer-Only” can still be accessed through the platform’s broker privileges. Some clean title vehicles may even display a “No License Required” tag, allowing you to bid directly.

Michigan’s Rules for Salvage and Rebuilt Titles

When you buy a salvage vehicle in Michigan, you must complete a specific process before you can legally drive it again.

Step 1: Repairs and Documentation

Once you’ve rebuilt the vehicle, gather bills of sale for replacement parts, before-and-after photos, and your original salvage title.

Step 2: Inspection

Apply for a salvage vehicle inspection through the Michigan Department of State. This $100 inspection ensures the vehicle was rebuilt safely and does not contain stolen parts.

Step 3: Rebuilt Title Issuance

After you pass the inspection, the state issues a rebuilt title, allowing you to register and drive the car on public roads. The state does not allow vehicles branded as “Scrap” to be retitled or registered for use.

Sellers must disclose whether a vehicle has ever been branded as salvage, rebuilt, or scrap under Michigan law to ensure transparency in resale transactions.

Buying Salvage Cars in Michigan Through AutoBidMaster

Here’s how to buy a salvage or clean title car in Michigan through AutoBidMaster:

1. Sign up for a free account and verify your profile.
2. Explore Michigan auction listings to find vehicles that match your budget and preferences.
3. Choose your membership level for greater bidding power and access to restricted auctions.
4. Place your bids and let AutoBidMaster handle the dealer-side licensing requirements.
5. Pay and arrange shipping easily through your account dashboard.
6. Complete the inspection process if you’re rebuilding a salvage vehicle for road use.

Whether you’re buying your first project car or sourcing inventory for your repair shop, AutoBidMaster makes it safe and straightforward to participate in Michigan’s auto auctions.

Key Takeaways

• Michigan requires dealer or Salvage Vehicle Agent licensing for most salvage and dealer-only auctions.
• Public buyers can’t directly access these auctions without the proper credentials.
• AutoBidMaster’s broker status allows members to bid on restricted lots legally and securely.
• Rebuilt vehicles must pass a state inspection before the state registers them for road use.
• Clean title vehicles may sometimes be available to the public, depending on auction restrictions.

Start exploring Michigan cars for sale on AutoBidMaster today and enjoy full access to dealer and salvage auctions—without needing your own license.

Sources (accessed November 2025):

• Michigan Vehicle Code § 257.248
• Michigan Department of State – Dealer Licensing
• Michigan Dealer Manual, Chapter 5: Distressed Vehicles
• Michigan Department of State – Salvage Vehicle Agent Application (AR-0188)
• AutoBidMaster Help Center – Buying Vehicles in Dealer-Only States (Alabama, Michigan, and Wisconsin)

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