Motor vehicle dealers are required to post an Arizona Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors.
First, you must know what type of motor vehicle license you are applying for. New is for those who want to sell new and used vehicles for retail, while wholesale will be on consignment. Used licensed is for selling used vehicles only. A Public Consignment Auction Dealer license is for those who can sell retail or wholesale, and for consignment, but only during a live auction. Wholesale license, meanwhile is only for selling wholesale to other licensed dealers.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
For additional licensing information, visit Arizona’s official page: AZ Motor Vehicle Division Licensing Information.
The amount of the bond depends on the Motor Vehicle Dealer license you are applying for.
Since this bond is continuous, it is in full force and effect until it is physically cancelled. If it is cancelled, a written notice of cancellation 60 days prior to cancellation must be submitted to the obligee.
The bond guarantees the principal will abide by all Arizona state laws and regulations outlined in the Arizona Revised Statutes.
The applicant should verify the Arizona Motor Vehicle Dealer Bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Surety Solutions Insurance Services, Inc. (Surety1) has been bonding Arizona car dealers since 2003. The company is licensed to operate in all 50 states and maintains an A+ rating by the Better Business Bureau. Surety1 represents over a dozen “A” rated surety companies to make sure you get your bond at the best possible price and terms.