Class A (New Vehicle Dealer) - This dealer buys and sells new vehicles under a
franchise agreement or a contract with a new vehicle manufacturer.
Class B (Used Vehicle Dealer) - This dealer buys and sells used vehicles.
Class C (Used Vehicle Parts Dealer) and Class R (Automotive Recycler) - These
dealers buy or otherwise acquire late model major component parts for resale, e
ither
at wholesale or at retail, and/or acquire vehicles to dismantle for the resale of their
parts, selling the remains as scrap. These are the only classes which can legally
buy
late model distressed vehicles (salvage or scrap vehicles) or late model major
component parts from insurance companies, or through auctions, brokers, or salvage
pools in Michigan.
Class D (Broker) - This dealer "brokers" the sale of vehicles or late model major
component (salvageable) parts by arran
ging (or offering to arrange) for the sale of
the vehicles or parts between two parties. A b
roker may not take ownership of the
vehicles or major compo
nent parts.
Class E (Distressed Vehicle Transporter) - This dealer may: 1) buy or acquire
owne
rship of, 2) transport, and 3) sell scrapped or
junked vehicles only. Vehicles
may b
e sold at wholesale only to:
1.
Used Vehicle Parts Dealers (Clas
s C); or
2.
Scrap Metal Processors (Class F); or
3.
Automotive Recyclers (Class R).
This dealer may NOT dismantle vehicles or sell parts. (Note: A vehicle "crusher" is
one type of dis
tressed vehicle transporter.)
Class F (Vehicle Scrap Metal Processor) -This dealer processes vehicles into
scrap metal by shearing, fragmenting, baling, shredding, etc. (Crushing vehicles is
not considered a scrap metal process since it is not the final step before remelting.)
A scrap metal processor who acquires vehicles only from licensed dealers is not
required
to be licensed but must keep certain records and make them available for
inspection.
Class G (Vehicle Salvage Pool) -This dealer engages in the business of storing and
d
isplaying damaged or distressed vehicles for insurance companies. Class G is
compatible only with Class D.
Class W (Automotive Wholesaler) - This dealer engages in the business of buying
and selling used vehicles from and to licensed vehicle dealers. A wholesaler may not
buy, sell or otherwise deal in vehicles to a person other than a licensed vehicle
dealer.