A provision in HB5356 eliminates certificate-of-title fees for dealers acquiring electronically-titled vehicles from the public—a recurring per-unit savings most manufacturers haven't heard about yet.
Most Michigan vehicle dealers don't realize that buried in HB5356—a bill primarily about vehicle title administration—is a fee waiver that directly reduces the cost of acquiring inventory from consumers.
Here's what's actually happening: Starting October 1, 2026, any new or used vehicle dealer that purchases a consumer-owned vehicle with an electronic Michigan title will pay zero certificate-of-title fees when acquiring that vehicle. Currently, those fees total $15 per transaction ($10 base fee, plus $3 service fee, $1.50 tire surcharge, and $0.50 assessment). For dealers who regularly buy trade-ins or vehicles directly from the public, this is a per-unit cost savings on every single acquisition.
If your operation includes a used-vehicle department, accepts trade-ins, or buys vehicles from consumers to resell or use in your fleet, this provision applies to you. The waiver covers any vehicle the dealer acquires that carries an electronic title issued by Michigan—which is the standard for titled vehicles in the state.
The provision does not apply to dealer-to-dealer sales or vehicles titled in other states. It's specifically about the transaction between a consumer and a dealer.
On its face, $15 per vehicle may seem modest. But for a dealership acquiring 50 vehicles a month from consumers, that's $9,000 annually. For larger operations, the number scales accordingly. Because this is a per-acquisition cost—not a one-time fee—the savings compound across your entire inventory-acquisition cycle.
The waiver is permanent unless the underlying fee structure changes. The bill itself contains an October 1, 2027 expiration date for the broader fee provisions in subsection (1), but the dealer fee waiver in Section 806(4) contains no stated sunset, meaning it should remain in effect beyond that date unless the legislature acts.
The waiver takes effect October 1, 2026. If your dealership currently budgets for title fees on consumer acquisitions, you'll want to adjust that line item starting in the fourth quarter of 2026.
This is the kind of provision that doesn't make headlines but meaningfully affects operational costs. It's worth reviewing with your accounting and compliance teams to ensure you're capturing the benefit when it goes live.
Source: HB5356, Section 806(4), Michigan Public Act 300 of 1949 (MCL 257.14 et seq.)