Arizona Auto Dealer Bond

1. Apply for Your Bond

You can buy an Arizona auto dealer bond in a few easy steps. The first is to complete the online application. This brief application usually can be filled out within a few minutes. With numerous bond programs available, we have provided bonds to more than 99% of applicants. 

When Charlotte contacted us to buy an Arizona surety bond, she was worried that her low credit score would be a problem. However, because we provide bonds to applicants with scores under 599, Charlotte quickly got the bond she needed to obtain a dealer license. Now, she has a thriving dealership in Phoenix.

2. Get a Quote

In most instances, our customers receive an immediate quote for their auto dealer bond. If your application is more complex, you will receive a quote within 48 hours of submitting your application.

3.  Purchase Your Bond

After receiving and reviewing your quote, the final step is to buy your bond. You can pay your premium online, and your bond will be available immediately. We’ll send your bond directly to your email account. Upon request, we can mail your bond to you as well. 

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.

When submitting an application for an auto dealer license in Arizona, you must provide a dealer bond with a power of attorney for the attorney-in-fact. A separate bond must be provided for each county where the applicant has an established place of business.

The required bond amount for a new or used motor vehicle dealer or a public consignment auction dealer is $100,000. The bond amount for a broker, wholesale auto auction dealer or wholesale motor vehicle dealer is $25,000. The bond amount for an automotive recycler is $20,000.

Handwritten bonds are not accepted. The bond must be properly sealed, stamped or documented with a sticker. Signatures from the individual, all partners for a partnership or the corporate office for a corporation are required. 

The bond is continuous and does not need to be renewed. It may be canceled with a written notice from the surety bond company to Dealer Licensing. The cancellation must be received no later than 60 days before the cancellation date.

An auto dealer bond in Arizona remains in effect until it is canceled. As a result, you do not need to take extra steps to renew it. 

If you or the bond company wish to cancel the bond, the surety bond company must submit a written notice to Dealer Licensing. Dealer Licensing must receive this written notice at least 60 days before the bond’s cancellation date.

The claimant will file the claim directly with the surety bond company. They will then conduct a thorough investigation of the claim to determine its validity. If the claim is not validated, the surety company denies the claim.

If the claim is deemed to be valid, the surety bond company pays the claimant up to the bond’s penal sum. After the claimant is paid, the Arizona dealership is responsible for reimbursing the surety bond company in full.

To get an auto dealer license in Arizona, the required documentation must be submitted to the Arizona Department of Transportation. The documents must be submitted online through ADOT Force. Mailed documentation will be returned to the sender. 

The documents required by the Arizona Department of Transportation are:

• Authorized Presence Documentation (for individual and sole proprietor applicants)
• AZ MVD Now Dealership Administration Application
• Authorization to Release Information – Statement of Personal History
• Photos of all four sides of the building, the business sign, the business hours, the locked cabinet and the office space
• Two labeled dedicated parking spaces for dealerships located in a suite or complex
• Articles of Incorporation, if applicable
• Transaction Privilege Tax License, reflecting the current year and business address
• Dealer bond with a power of attorney
• Letter of intent, for new car dealers only
• Photo of perimeter fence, for auto recyclers only
• Photo of sign that reads “Vehicles are sold as-is" or ”No implied warranty” (for wholesale auction and public auction dealers only)
• Fingerprints and background verification
• Applicable fees

For questions about the dealer licensing requirements and steps, contact the Arizona Department of Transportation at (602) 255-0072 or [email protected].