Arizona Car Dealer Bonds are required by The Motor Vehicle Department "MVD" to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $100,000. The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.
$100,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers
$20,000 surety bond for Automotive Recyclers
$25,000 surety bond for Brokers, Wholesale Auction Dealers, Wholesale Motor Vehicle Dealers, and Title Service Companies
There are 3 parts to a AZ MVD Dealer bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee is the entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
You can buy your Arizona Car Dealer bond (Apply) online immediately as low as $650 for qualified individuals.
Types of Dealer Licenses in Arizona
Arizona makes available—and requires, depending on your situation—several motor vehicle dealer licenses:
· New Car Dealer.
. Used Car Dealer.
. A person—other than a new car dealer—who sells or negotiates the sale, buys, exchanges, or auctions 7 vehicles or more in 12 months.
· Public Consignment Auction Dealer.
· Wholesale Dealer.
· Wholesale Auction Dealer.
· Auto Recycler.
You'll mark which license you're applying for on the application; both the application and ADOT provide explanations of each license type.
Also, ADOT recommends contacting the following departments if you have any questions about which license you need:
· Car Dealer Licensing: (602) 712-7571.
· Arizona Independent Automotive Dealers Association (AIADA): (602) 246-1498.
. AIADA provides information related to required license-specific compliance classes.
Applying for an AZ Car Dealer License:
To apply for your AZ dealer license, you will need to:
· Complete a Motor Vehicle Dealer Application (Form 46-0408).
. The application comes with detailed instructions on completing the application. Make sure you review and follow the instructions carefully to ensure acceptance of your application.
· Provide your fingerprint cards (Form FD-258) in an envelope sealed by the fingerprint technician.
. ADOT requires a criminal record check for each applicant and partner. You can request a fingerprint card online and bring it to an approved fingerprinting location.
. Your application will be denied if you've been convicted of fraud or an auto-related felony within the last 10 years OR any type of felony within the last 5 years.
· Provide any other applicable required documents.
. You can use the checklist included with the application to help.
· Pay the $15 filing fee and $30 background check fee (per applicant).
. You'll receive an invoice for all other applicable fees to be paid later.
Mail the application and all associated documents and fees to:
Motor Vehicle Division
Dealer Licensing Unit
P.O. Box 2100
Phoenix, AZ 85001
Refer to the state's Dealer Services and Licensing for a more detailed process overview and further information about licensing, additional dealer forms, and more.
Apply for a Business License
Most likely, you'll also need to apply for a business license.
Refer to the Arizona Department of Revenue (DOR) licensing guide about obtaining a business license to operate your business, including information about taxes.
Dealer Licensing Fees:
When submitting your application, you'll need to pay the following:
· $15 filing fee.
· $30 background check fee per applicant.
. After your application has been filed, you will be billed for later payments of any applicable fee among the following:
· License: $100.
· Provisional license: $10.
· Branch office: $50.