Arizona Motor Vehicle Dealer Bond Guide
In Arizona, all auto dealers must file a surety bond with the Department of Transportation (ADOT) to be licensed.
Bond Overview
- Purpose: To ensure auto dealers comply with state regulations
- Who Needs It: All new, used, wholesale, and auction motor vehicle dealers in Arizona
- Regulating Body: The Arizona Department of Transportation – Motor Vehicle Division
- Required Amount: $100,000 ($25,000 for wholesale dealers)
- Premium Rates: Credit-based, starting at 0.75% of the bond amount
Keep scrolling to learn more about the bonding process.
What Is an Arizona Motor Vehicle Dealer Bond?
An Arizona motor vehicle dealer bond ensures that all wholesale, wholesale auction and commercial auto dealers follow state regulations and operate ethically. The ADOT requires this type of license and permit bond to operate in the state.
How Much Bond Coverage Do I Need?
Your bond amount depends on your dealer license type:
- Wholesale motor vehicle dealers only sell used vehicles to licensed dealerships and must file a $25,000 bond.
- Wholesale auction dealers do not buy, sell or own the vehicles they auction and must file a $25,000 bond.
- New and/or used motor vehicle dealers sell directly to consumers and must file a $100,000 bond.
Note: If you plan to recycle vehicle parts, you need an Arizona automotive recyclers bond. Or, if you provide authorized third party services, you’ll need to file an Arizona motor vehicle third party bond.
How Much Do Motor Vehicle Dealer Bonds Cost in Arizona?
Arizona motor vehicle dealer bond premiums are credit-based and typically cost 0.75–2% of the total bond amount. For example, qualified applicants often pay just $750 for $100,000 in coverage.
Your exact rate will depend on your bond amount and financial qualifications. You may also be eligible for a multi-year term discount to save up to 25%. Apply below to get your free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arizona Motor Vehicle Dealer Bond Work?
An Arizona motor vehicle dealer bond is a legal contract between three parties:
- Principal: The motor vehicle dealer purchasing the bond
- Obligee: The Arizona Department of Transportation requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold Arizona Revised Statutes Title 28 Chapter 10.
If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
How Do I Get a Motor Vehicle Dealer Bond in Arizona?
SuretyBonds.com provides the fastest and easiest way to get a motor vehicle dealer bond in Arizona. Follow these simple steps:
- Apply Online: Select your coverage amount and enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the bond documentation with the ADOT.
How Fast Can I Get My Bond?
SuretyBonds.com issues motor vehicle dealer bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote within one business day or less.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit.
If poor credit results in a high rate, ask about premium financing options. This allows you to divide your bond premium across manageable installments rather than paying 100% of the cost upfront.
How Do I Renew My Motor Vehicle Dealer Bond?
Arizona motor vehicle dealer bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires. All you need to do is pay the renewal premium to maintain coverage.
How Do I Update My Auto Dealer Bond Form?
You must update your surety bond form if any information changes, such as your dealership’s name or address. If you work with SuretyBonds.com, email [email protected] to explain the needed change.
How to Become a Motor Vehicle Dealer in Arizona
The Arizona Department of Transportation oversees licensure of all wholesale, auction and commercial motor vehicle dealers.
To apply, create an ADOT Force account and select your license type. All dealer types must submit the following documents:
- Authorized presence documentation
- AZ MVD NOW dealership administrator application & $15 filing fee
- Authorization to release information - statement of personal history
- Copy of transaction privilege tax license
- Pictures of your facility
- Fingerprint and criminal background check through the Arizona Applicant Processing Services & $30 fee
- Business registration (if applicable)
- Dealer plate application (auctioneers are exempt) & $30 fee per plate
- $100 licensing fee
Additional License Requirements for New and Used Car Dealers
New vehicle dealers need to submit the following documents:
- $100,000 dealer surety bond
- Franchise authorization for each manufacturer
- Authorization letter or Certificate of Appointment signed by the manufacturer or distributor (if selling new products)
*Note: The new motor vehicle dealer application allows you to sell both new and used vehicles. If you plan on selling only used cars, complete the used motor vehicle dealer application process.
How Do I Renew My Dealer License?
Motor vehicle dealer licenses are continuous and only require an annual fee to renew. Your renewal date depends on when the ADOT processes your application and will be listed on your license certificate.
