Arizona Motor Vehicle Dealer Bond

Motor vehicle dealers are required to post an Arizona Motor Vehicle Dealer Bond as part of the process to license the dealership. This is a type of surety bond. 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. New Motor Vehicle dealer, Used Motor Vehicle Dealer, and Public Consignment Auction Dealer must purchase $100,000 surety bond.

The cost of the surety bond is usually between .75% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to get an Arizona Motor Vehicle Dealer Bond

At Surety1.com we make it easy to obtain the surety bonds you need. Our 3 step process is:

1. Complete our easy to use and secure, online application. ¹
2. Review your free, no obligation quote from one of our surety bond professional agents, usually within 1 business day.
3. Sign some paperwork and make payment (All Major Credit Cards Accepted) 

Once these steps have been completed, the Arizona Motor Vehicle Dealer Bond will be shipped to the principal (Applicant) for an original signature prior to the bond being turned into ADOT.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003 and maintains an A+ rating by the Better Business Bureau.

What are the requirements to be a Motor Vehicle Dealer in Arizona?

First, you must know what type of motor vehicle license you are applying for. New car dealership license bond is for those who want to sell new and used vehicles for retail, while wholesale will be on consignment. Used car license 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:

• Arizona Motor Vehicle Dealer Bond
• Fingerprinting
• $22 criminal background check fee
• Location of business
• License application
• $15 filing fee
• $100 license fee
• $10 provisional license fee
• $50 for each additional business location
• Supporting application documents (listed on official page)

All licensing fees are required by the obligee, not the surety company.

What is the Surety Bond amount I need?

The amount of the bond depends on the Motor Vehicle Dealer license you are applying for.

• New Motor Vehicle dealer, Used Motor Vehicle Dealer, and Public Consignment Auction Dealer – $100,000 surety bond.
• Broker, Wholesale Auto Auction Dealer, Wholesale Motor Vehicle Dealer – $25,000 surety bond.
• Automotive recycler – $20,000 surety bond.

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 surety 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.