Arizona Auto Dealer Bond

If you sell more than 7 vehicles in one year in the state of Arizona, then you are required to be licensed as an auto dealer by the Arizona Department of Transportation. As part of the licensing process, both new and used auto dealers are required to obtain a $100,000 motor vehicle dealer bond. On the other hand, wholesale dealers, wholesale auction dealers, and brokers are required to obtain a $25,000 bond. We’re quite familiar with the process and have helped hundreds of dealers in Arizona with their bonding needs. Get started with a quote below. It takes three minutes.

Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.

Motor Vehicle Dealer Bond

Bond Amount: $100,000

Required By: Arizona Department of Transportation

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State Acceptance Guarantee
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Refund within 30 days
1 Year Bond Starts At
$650
*Based on credit and experience
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How much is it?

Our starting price for a 1 year $100,000 Arizona Motor Vehicle Dealer bond is $650. The starting price for the $25,000 bond begins at $150 per year. Prices may vary depending on the personal credit of the dealership or brokerage owner. Generally speaking, the higher the credit score, the better the price.

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Arizona Auto Dealer Bond FAQ

What Types of Arizona Dealer Bond Do I need?

  • $100,000 Arizona Used Motor Vehicle Dealer Bond: this is for auto dealers who sell used cars to the public
  • $100,000 Arizona New Motor Vehicle Dealer Bond: this is for auto dealers who sell brand new vehicles to the public. Typically, these dealers are franchisees
  • $25,000 Wholesale Motor Vehicle Dealer Bond: this is for auto dealers who only sells used vehicles to other dealership
  • $25,000 Wholesale Auction Dealer Bond: this is for dealers who who buy or sell vehicles only at car auction sites
  • $25,000 Motor Vehicle Broker Bond Bond: this is for motor vehicle brokers who aid in the sale of vehicles

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Is a Credit Check Necessary to Get a Bond?

Yes, insurance companies will perform a "soft credit check" to assess eligibility and pricing for Arizona Auto Dealer Bonds. It's important to note that this type of credit check won't have any negative impact on the applicant's credit score.

What If I Have a Bad Credit?

Credit scores under 650 are sometimes classified as "poor" credit. We have partnerships with insurance companies that specialize in providing coverage to this market segment. If you have less than ideal credit, please contact us without hesitation. We'll assist you in getting bonded by searching on your behalf. Our team has helped many individuals with imperfect credit obtain Arizona auto dealer bonds.

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How Long Does It Take to Get Bonded?

In most cases, we can get you bonded on the same day. Once we receive a quote from our insurance partners, the process is almost instantaneous. We work tirelessly, including weekends, to expedite your bonding process. Our phone lines are open every day from 9:30 am to 9:30 pm CST, and if we miss your call, we'll try our best to return it within 30 minutes.

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Why Do I Need an Arizona Motor Vehicle Dealer Bond?

It is to ensure that you are compliant with the statutes posted by Arizona Department of Transportation for licensed auto dealers operating in the state, some of which are listed below: 

  • Keep and maintain records of all vehicles
  • Obtain permits prior to exhibiting, displaying and selling vehicles offsite
  • Fully disclose all issues of a vehicle before a sale
  • Legally hold the titles of the vehicles you are selling and transferring them to your customers after sale
  • Secure appropriate vehicle warranties of the vehicles you are trying to sell
  • Paying all relevant taxes related to operating your dealership

If you don't violate the Arizona Motor Vehicle Dealer statutes, a claim can be made against your bond.

How can I avoid claims against my bond?

To avoid potential claims against your bond, it's crucial to adhere to the guidelines outlined in the Arizona Department of Transportation dealer code when running your auto dealer business. This involves paying the appropriate fees and taxes related to vehicle sales and providing valid titles to your customers. By submitting your bond, you confirm that you'll provide genuine vehicles and fulfill all legal requirements associated with operating an auto dealer business.

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