The Complete Arizona Dealer License Guide [2021]

Published: May 26, 2021
To become a licensed car dealer in Arizona you also need to post an Arizona auto dealer bond.

 

Do you want to start a car dealership in Arizona? You’ll have to obtain an Arizona dealer license to sell motor vehicles in the state. 

The Arizona Department of Transportation (ADOT) issues the following license types, corresponding to the different vehicle types and activities: 

  • New Motor Vehicle Dealer
  • Used Motor Vehicle Dealer
  • Wholesale Motor Vehicle Dealer
  • Public Consignment Auction Dealer
  • Wholesale Motor Vehicle Auction Dealer
  • Broker
  • Manufacturer
  • Manufacturers of Trailers

You can get to know the full requirements for getting an Arizona auto dealer license in the guide below. 

1. The Arizona Dealer License Requirements

You’ll have to comply with the ADOT’s criteria for licensing for the respective license type you wish to obtain. The applicable legislation is Title 28 of the Arizona Revised Statutes

Business and Tax Registration

You’ll have to register a business entity in the state. 

Attach your articles of incorporation or other business entity documents to your application. 

You’ll also have to get the following registrations:

  • Transaction Privilege Tax License from the state Department of Revenue (all license types but manufacturers) 
  • Federal Employer Identification Number (FEIN) from the Internal Revenue Service (IRS)

Established Place of Business

You should include a proof of your established place of business in your application form. 

You’ll need to attach the following pictures of your physical location:

  • All four sides of building
  • Entire lot
  • Office area
  • Secure file cabinet
  • Business sign (permanently affixed)
  • Days/hours of operation 
  • Signs stating “Emissions is the responsibility of the buyer” (public consignment auction dealers only)

If applying for a used motor vehicle, wholesale motor vehicle, public consignment auction, wholesale auction, or a broker license, you’ll also have to provide your lease agreement or Copy of Deed

Criminal Background Check and Personal History

Applicants for used motor vehicle, wholesale motor vehicle, public consignment auction, wholesale auction, and broker licenses have to authorize a criminal background check

If you’re applying for any of these licenses, you’ll also need to complete an Authorization to Release Information – Statement of Personal History form for each owner who is a 20% or more stakeholder to your application.

New Vehicle Dealers Documents

New vehicle dealers have to provide an Authorization letter or a Certificate of Appointment signed by an authorized agent of the manufacturer or distributor licensed to conduct business in Arizona.

Manufacturer Documents

Applicants for a manufacturer license have to comply with a different set of requirements. You’ll need to provide the following documents:

  • Blanket written agreement used for all franchised dealer
  • Certificate of appointment for each franchise
  • Copy of the delivery and preparation form/checklist
  • List of all franchises
  • Sample of your MCO (Manufacturer’s Certificate of Origin) Front and Back
  • Copy of VIN plate
  • Photocopy of the Manufacturer’s Federal label
  • Product brochures

2. Complete the Arizona Dealer License Application

Once you’ve collected all the paperwork, it’s time to submit your application form and pay the required fees. 

Arizona License Application Forms

You’ll have to complete your application form through the ADOT website.

Licensing Fees

You’ll have to pay a $15 filing fee for all license types.

3. Provide a Surety Bond 

You’ll have to get an Arizona auto dealer bond as a part of the licensing process for all license types but manufacturers. The bond guarantees you will follow the Arizona auto dealer laws in your activities. 

The bond amounts vary by license type:

  • New and Used Motor Vehicle Dealers and Public Consignment Auction Dealers – $100,000
  • Wholesale Motor Vehicle Dealer – $125,000
  • Wholesale Motor Vehicle Auction Dealers and Brokers – $25,000

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4. Submit and Receive Your Arizona Dealer License

Once you’ve applied online for your license, the ADOT will review your application. It will issue the respective license if you’ve met all the requirements.

You can change or cancel your license online. 

5. Conclusion

The process of getting your Arizona car dealer license can take between 1 and 2 months, depending on your compliance with the requirements. 

You’ll have to renew the license every year to continue your dealer operations. 

Need further information about the Arizona motor vehicle dealer license and bonding? Post your questions in the comments section below!

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.