Bill > HB4281

This bill establishes the Used Motor Vehicle Warranty Act, which requires used motor vehicle dealers to offer consumers a contract cancellation option agreement when selling vehicles priced at $50,000 or less. Under this agreement, consumers have two days after purchase to return the vehicle for any reason, driving up to 150 miles during that period, and have the right to have the vehicle inspected by a mechanic of their choice. Dealers can charge a nonrefundable fee for the cancellation option, with prices ranging from $75 to 1% of the vehicle's purchase price depending on the vehicle's value. If a consumer returns the vehicle within the two-day window, the dealer must provide a full refund minus a restocking fee, which varies from $175 to $500 based on the vehicle's price. The bill does not apply to motorcycles, off-highway vehicles, vehicles over $50,000, or private party sales. Consumers who believe a dealer has violated the act can bring a legal action to recover damages and potentially receive compensation for legal costs. The law will take effect 180 days after its enactment and applies to all used vehicle sales from that point forward.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4281