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View Full Version : My experience with getting my Hot Rod titled in Michigan. What is a Surety Bond?



e36m3
10-16-2025, 11:14 AM
Go out to the https://www.michigan.gov/sos/vehicle/titles scroll down to the assembled vehicles for a list of things the car has to have. For example windshield wipers, windshield washers, and bumpers are listed as needed. The deputy that did the inspection on my car let me get a way with what is in the pictures below.

I went to a Michigan DMV office on 8/13 to request a title. DMV told me I get a call from the Michigan Regulatory Monitoring Division to set up a time for an agent to come out and put a VIN sticker on the car.
Two days later I got a letter from the Michigan DMV saying my title application has been accepted.

3.5 weeks went by and I still hadn’t heard anything more so I went out the Michigan Secretary of State (MI DMV) website to find a number to call.
I called a number that I do recall, selected titles section and kept pushing 0 until I got a live person.

That person looked up my title application and told me that the agent had some questions but did elaborate any further. I was given a number to call 517-335-1410.
When I call 517-335-1410, the call went directly to voicemail and the voicemail box was full :^( Since then I’ve been told that the voicemail box has been fixed.

The Michigan Department of State Information Center that fixed the voicemail box told me I could reach the correct depart via sos-ois@michigan.gov.
sos-ois@michigan.gov is the contact for the Regulatory Monitoring Division Michigan Department of State.

After reaching out to sos-ois@michigan.gov a regulatory agent reached out to me and asked for receipts for the engine and transmission, then things got more complicated.

5 years ago I bought a 5.0L 86 Mustang GT engine off of Craigslist for $250, should have gotten a bill of sale. I had the engine rebuilt by a local engine shop. All that was reused from the engine was the block. New crank, aluminum heads, bore out 0.030”, pistons, new intake, and etc.
I bought a T5 transmission off of ebay from a salvage yard.

I had the receipts for the engine rebuild and the transmission, but the state of MI didn’t like the history of ownership on the engine and transmission so I had to get a Surety Bond for 2 times the value of the car. To establish value on the car I had to get it appraised.

A surety bond is a three-party agreement where a surety company guarantees to the State of MI that if someone in the future contests the ownership of the engine or transmission that the State cannot be held liable since the state is issuing me a title to the car.

For the appraisal I went through Auto Appraisal Group Inc www.autoappraisal.com. They had a local guy come out to take about 100 pictures of the car. This cost $485 and took a week. The appraisal came in at $40K, basically a total of all the receipts I gave them.

Once I had the appraisal then I had to get the Surety bond. I went through Surety One.com.
The bond cost $1,600 and took a week to get completed.

In all it tool 8 weeks to get my car registered.

Daniel Strand
10-23-2025, 06:12 AM
I see you have a towbar. How did you mount it? I'm thinking of mounting one on my 33, but I'm having trouble finding a good solution, as I'm using an IRS rear axle.
/Daniel

cob427sc
10-23-2025, 10:49 AM
Wow! And I thought Massachusetts was bad. I have several times, used the out of state method, once with Montana and once with Louisiana where I titled the car in that state for $100, waited 30 days then went to the local registry and sent it through Mass RMV with no issues or inspections.

edwardb
10-23-2025, 01:11 PM
I've done the process five times in Michigan. Four out of the five were easy. Once I had the LEO safety inspection, went to the SOS with all my paperwork for the title application. I had receipts for everything -- kit, engine, trans, certificate of origin, etc. The documents go to Lansing and sometime later they called for an appoint to place the VIN tag. Just like the OP described. The one I had an issue with was a little similar to the OP's. I had purchased a barely started kit from an out of state builder and my name wasn't on the certificate of origin. Even though I had a bill of sale from the seller, they required me to get a surety bond. Just as the OP stated, this is when they're not satisfied about the history of ownership. Mine was stopped right at the SOS. Didn't even make it to the agent in Lansing. I've heard enough stories about other states and how difficult some can be. I don't know that I'd put Michigan in that category if everything is "normal" and you have the documentation they require.

neilkuy
10-24-2025, 08:42 AM
@e36m3,
Are you saying that even your receipt for the transmission from the salvage yard was not sufficient? I thought a receipt from a salvage yard would suffice as it is perhaps more reputable than a private seller of a standalone engine or transmission.
Did you gain any insight on how to put a used engine or transmission in a build and avoid the appraisal/surety bond complications at the time of titling?