This section of the Michigan Vehicle Code defines key terms related to vehicle dealerships, including 'dealer,' 'demonstrator,' and 'distressed vehicle.' It clarifies licensing requirements, vehicle classifications, and the scope of dealership activities. These definitions help regulate the automotive sales industry within Michigan.
A 'dealer' includes licensed vehicle sellers, insurers, lessors of commercial vehicles, and those who sell off-lease vehicles or vehicles received for resale under specific conditions.
A distressed vehicle has major damage or missing parts, with repair costs estimated to be at least 75% of its pre-damage cash value.
A dealer license is an authorization from the Michigan Secretary of State that allows a person to legally operate as a vehicle dealer.
A demonstrator is a vehicle used by a dealer or prospective customer for testing and demonstration purposes.