A suspended dealership license means the dealer cannot legally sell, trade, or lease vehicles until the suspension is lifted
When the Michigan Department of Energy, Great Lakes, and Environment (EGLE) or the Michigan Secretary of State suspends a General Motors dealership license, that dealer loses the legal right to conduct vehicle sales. The suspension is not permanent — it is a temporary enforcement action — but it stops all dealership operations when ready. If you bought a vehicle from a dealer whose license was suspended, or you are trying to understand what happened to a dealership you worked with, the suspension affects your rights and next steps.
A suspension differs from a revocation. A revocation ends the license permanently and usually follows repeated violations or serious misconduct. A suspension is a pause, typically lasting until the dealer corrects the violation that triggered it, pays any fines, or meets conditions set by the state.
Key Takeaways
- Michigan suspends dealership licenses for violations including fraud, odometer tampering, selling vehicles with undisclosed damage, failing safety inspections, or not maintaining required bonding.
- The Secretary of State's Office and EGLE both have authority to suspend licenses depending on the violation type and which rules were broken.
- If you purchased a vehicle from a suspended dealer, your title transfer may be delayed, and you should contact the Secretary of State's Office to confirm the sale was legal.
- A dealer can request a hearing to contest the suspension, and the state must provide written notice of the reason and the process to appeal.
- You can search the Michigan Secretary of State's dealer lookup tool to check whether a dealership's license is currently active, suspended, or revoked.
Why Michigan suspends GM dealership licenses
The Michigan Secretary of State's Office oversees dealership licensing and can suspend a license for violations of the Motor Vehicle Sales Finance Act or the Regulation of Retail Sales of Motor Vehicles Act. Common reasons include selling vehicles with hidden damage or defects without disclosure, rolling back odometers, misrepresenting vehicle history, failing to disclose prior accidents or flood damage, and not providing required documentation at the time of sale.
EGLE can also suspend a dealership license if the dealer fails environmental compliance inspections or sells vehicles that do not meet emissions standards. Additionally, the Secretary of State may suspend a license if the dealer fails to maintain a required surety bond, does not renew their license on time, or receives multiple consumer complaints that reveal a pattern of fraud or deception.
Suspension can also result from selling vehicles with outstanding liens, failing to clear titles before sale, or not properly handling trade-in vehicles. The state acts on complaints from buyers, reports from other agencies, or during routine audits.
How to check if a dealership license is suspended
You can search the Michigan Secretary of State's Dealer Lookup tool on their official website. Enter the dealership name or license number, and the tool will show whether the license is active, suspended, or revoked. This search is free and available to the public.
If you are looking for a dealership's history, you can also contact the Secretary of State's Office directly at the phone number listed on their website. They can tell you when a suspension began, what violation triggered it, and whether the dealer has requested a hearing or is working toward reinstatement.
If you purchased a vehicle and later discover the dealer's license was suspended at the time of sale, contact the Secretary of State's Office when ready. They can advise whether the sale was legal and what steps you may need to take to protect your ownership rights.
What happens to vehicle titles and registrations during a suspension
If a dealership's license is suspended, the Secretary of State may place a hold on title transfers initiated by that dealer. This means your title paperwork could be delayed or rejected if the dealer has not completed the transfer before the suspension took effect. You will not own the vehicle legally until the title is in your name.
If you are waiting for a title transfer and the dealership's license is suspended, contact the Secretary of State's Office with your purchase documents and vehicle identification number (VIN). They can determine whether your sale was processed before the suspension and help move the title transfer forward if it was not.
If the dealer's license was suspended after your purchase but before the title transfer was complete, you may need to work with the Secretary of State's Office to complete the transfer through an alternative process. Do not assume the sale is invalid — the state can often process legitimate sales even after a suspension begins.
The suspension hearing and appeal process
When the Secretary of State suspends a dealership license, they must send written notice to the dealer explaining the violation and the suspension period. The notice also informs the dealer of their right to request a hearing before the Michigan Administrative Hearing System (MAHS).
The dealer has a set time window — usually 10 days from the notice date — to request a hearing. If they request one, a hearing officer reviews evidence from both the state and the dealer. The dealer can present documents, testimony, and witnesses to contest the suspension or argue that they have corrected the violation.
After the hearing, the officer issues a decision. If the dealer wins, the suspension is lifted when ready. If the state's decision stands, the dealer can appeal to the Michigan Court of Appeals, though this is rare and requires legal grounds related to how the hearing was conducted, not disagreement with the facts.
What buyers should do if they purchased from a suspended dealer
If you bought a vehicle from a dealership and later learned its license was suspended, your first step is to verify the suspension date. If the suspension occurred after your purchase was completed, your sale is generally valid and your title should transfer normally.
If the suspension occurred before or during your purchase, contact the Secretary of State's Office with your bill of sale, purchase agreement, and proof of payment. Bring any documents showing when the transaction took place. The state can determine whether the sale was legal and help you complete the title transfer if needed.
If the dealer committed fraud — such as selling you a vehicle with hidden damage or a rolled-back odometer — you have separate consumer protection options. You can file a complaint with the Attorney General's Consumer Protection Division or pursue a civil claim against the dealer. The suspension itself does not invalidate your purchase, but it may indicate the dealer was breaking rules, which strengthens a fraud claim.
How a dealership can get reinstated after suspension
To lift a suspension, the dealer must correct the violation that triggered it. If the suspension was for fraud or odometer tampering, the dealer must demonstrate they have implemented new compliance procedures and training. If it was for failure to maintain bonding, they must provide proof of a current surety bond. If it was for environmental violations, they must pass a new inspection.
The dealer must also pay any fines assessed by the state. Once the dealer has met all conditions, they can request reinstatement in writing to the Secretary of State's Office. The state reviews the request and, if satisfied, lifts the suspension and reactivates the license.
Some suspensions have a set duration — for example, 30 days or 90 days — and lift automatically once that period ends, provided the dealer has met any other conditions. The dealer's reinstatement request or the automatic lift date will be noted in the Secretary of State's records.
Frequently Asked Questions
Can I get my money back if I bought a car from a dealer whose license was suspended?
A suspension does not automatically void your purchase or may have access to you to a refund. However, if the dealer committed fraud — such as hiding damage or rolling back the odometer — you may have grounds for a refund or damages. File a complaint with the Michigan Attorney General's Consumer Protection Division and consult a consumer protection attorney about your options.
Does a suspended license mean the dealership is closed?
A suspension means the dealership cannot legally sell vehicles, but the business itself may still be operating. The dealer cannot conduct any motor vehicle sales, leases, or trades until the suspension is lifted. Operating during a suspension is illegal and can result in additional penalties.
How long does a dealership suspension usually last?
Suspension length varies depending on the violation and whether the dealer corrects it. Some suspensions last 30 to 90 days; others remain in place until the dealer meets specific conditions. The Secretary of State's notice to the dealer specifies the duration or conditions for reinstatement.
What if I need to register my vehicle but the title transfer is stuck because of the dealer's suspension?
Contact the Secretary of State's Office with your purchase documents and VIN. They can determine whether your sale was processed before the suspension and help complete the title transfer through an alternative process if needed. You may be able to register the vehicle with a temporary permit while the title is being resolved.
Can I look up a dealership's suspension history before buying a car?
Yes. Use the Michigan Secretary of State's Dealer Lookup tool to check whether a dealership's license is active, suspended, or revoked. You can also call the Secretary of State's Office to ask about a dealer's history, including past suspensions that have been lifted.