Arizona Motor Vehicle Dealer Requirments

If you want to be a legal car dealer in Arizona, you have to get a license. Anyone who sells, exchanges, or accepts trade-ins for new cars or buys used cars to resell them, or who sells 4 vehicles or more in a period of 12 months, must have a dealer license. The regulations vary depending on the nature of your dealership, but every path requires that you submit an application, undergo a criminal record check, and pay a series of fees and provide a Motor Vehicle Dealer Surety Bond.

Application

You can obtain an application by contacting the Arizona Motor Vehicle Division (MVD) at (602) 712-7571 and asking for the Dealer Licensing Unit. The completed application must contain the notarized signatures of all responsible parties (the individual, partners, or an officer of the corporation).

You must submit a separate application for each license type you wish to hold. The types of licenses are as follows:

• Franchised motor vehicle dealer (new cars)
• Wholesale auto auction dealer
• Used motor vehicle dealer
• Automotive recycler
• Broker
• Title service company

Criminal Record Check

The MVD is strict in its check, so it will automatically deny anyone who has been convicted of fraud or an auto-related felony within the last 10 years or any other type of felony within the last 5 years. If you fall into one of those categories and are consequently denied a license, you can request an appeal from the MVD.

Surety Bonds

In addition to the application, criminal record check, and application fees, prospective automobile dealers must provid a MDV Dealers Surety Bond from an insurance or bondingcompany authorized to do business in Arizona. Surety1 is fully licensed in Arizona and represents over 15 different Insurance Companies that provide surety bonds. The bond amount varies depending on the type of dealership.

1. If you will sell new and/or used vehicles, you must obtain a bond for $100,000.
2. Title service companies, brokers, wholesale dealers, and wholesale auctioneers must bond for $25,000.
3. Automotive recyclers need bond for only $20,000.

With the exception of title service companies, you will need a separate, original surety bond for each application and for each county in which you will have an established place of business.