Effective August 8, 2016, Michigan auto dealers must keep records of used tires, tire wheels or rims, and continuous tire tread purchased from individuals. Although the law applies to both new and used vehicle dealers who purchase used motor vehicle parts from individuals, the law was passed to primarily address sales of stolen tires and rims to used car dealers.

The law requires dealers to obtain the VIN, state of origin, and other information on the used tires when purchasing. Purchases can only be made only by check, money order, bank draft, direct deposit, or electronic transfer – not cash. Purchases by check, money order, or bank draft must be mailed to the customer.

The new requirement includes tires, tire wheels or rims, and continuous tire tread in the definition of “used motor vehicle part,” subjecting it to the written record keeping requirement as well. Dealers must now keep a written “Record of Transaction” for each purchase and must keep such records for at least one year. A first knowing violation of the law results in a misdemeanor charge (maximum 1 year jail and $1000 fine), and subsequent violations carry a felony charge (maximum 2 years jail and $5000 fine).

If you have any questions about this new law, or if you would like additional information, please do not hesitate to contact a member of the Dealer Practice Group at 248-645-9300 or by email: