Buying and Selling a Motorcycle in Michigan

From beautiful lake coastlines to the busy streets of Detroit, Michigan offers a lively landscape for motorcycle enthusiasts. The Wolverine State’s dynamic terrain provides over 200,000 registered motorcyclists with ample opportunities for adventure.

Buying or selling a motorcycle in Michigan can be a straightforward process. Familiarizing yourself with the rules and having the correct documents entering the process helps make everything involved much simpler.

Here’s our guide to navigating these steps in the Great Lakes State.

Bill of Sale

Although strongly recommended, a Bill of Sale is not required by law in Michigan. It remains, however, an important record for both the buyer and seller. The document can help serve as evidence in the event of any possible future dispute from either side. It’s typical for the seller to fill out the paperwork and provide a copy to the buyer.

The Bill of Sale should include the following information:

• Motorcycle details (year, make, model, color, mileage, and Vehicle Identification Number (VIN)).
• Full names and addresses of both sale parties.
• Signatures of both parties.
• The final sale price.
• Date of sale.

Disclosing the accurate mileage with the buyer is important as a Michigan seller. This protects both parties and holds up the integrity of the sale. Providing incomplete or false information can lead to legal repercussions.

Both parties should double check to ensure that all of the information listed is accurate before signing and exchanging the Bill of Sale.

Title Transfer

The Certificate of Title determines legal motorcycle ownership. After the Bill of Sale has been completed and payment has been made, the seller will transfer the title to the buyer.

The seller must fill out the transfer section of the title. Both the buyer and seller should verify that these details are correct before signing. The seller will then hand the title over to the buyer. It’s wise for the seller to keep a photo or copy of the title after transferring it to the buyer.

If the title is missing or has been damaged, the seller will need to order a duplicate title through the Michigan Department of State (DOS) before the sale can be finalized.

The buyer will need to submit the completed title to the Michigan Secretary of State (SOS). Michigan’s DOS website recommends that both parties attend the title transfer to complete the motorcycle sale. 

Michigan requires the seller to submit an Odometer Mileage Statement along with the title transfer if the motorcycle is less than ten years old. The buyer will then need to complete the title transfer within 15 days of the sale date to avoid legal consequences and fines.

If the motorcycle currently has a lien against it, the seller must provide a lien termination statement to the buyer before the sale can proceed.

Registration

Once the title has been officially transferred, the buyer must register the motorcycle with the state of Michigan. The following will need to be presented to the SOS office to complete registration:

• The signed Certificate of Title.
• Michigan driver’s license.
• Proof of valid motorcycle insurance.
• Payment for title and registration fees.

The following minimums are required for auto liability insurance in Michigan: $50,000 per person and $100,000 per accident for bodily injury, and $10,000 for property damage.

Fees

You will be required to pay some fees when titling and registering your motorcycle. The amount may vary based on several factors, such as the age of the motorcycle. Michigan riders can expect to pay at least the following:

• Title transfer fee
• Registration fee
• Sales tax based on the motorcycle’s purchase price

You may check the Michigan DOS fee calculator for the most current information.

Conclusion

Buying or selling a motorcycle in Michigan can be a breeze if you follow the rules and procedures outlined above. We hope that this guide allows you to navigate this process with ease. For specialized assistance, it’s a good idea to reach out to your local Michigan Secretary of State office.

You should always thoroughly research your motorcycle purchase before committing to buying. The most successful transactions come after the buyer has inspected the motorcycle, checked for recalls, and used the VIN for a background check from a reputable platform.

Sellers have some responsibility as well. They should always provide accurate information about the motorcycle’s history and condition to ensure an honest sale.

Are you looking to buy or sell a motorcycle in Michigan soon? Let us know what you think! For a more detailed look into either process, check out our comprehensive guides on buying and selling a motorcycle.