Arizona Auto Dealer Bond

Arizona Auto Dealer Bond

Arizona Auto Dealer Bond must be in the amount of $100,000 and are required by the Arizona Department of Transportation.

Arizona motor vehicle dealer surety bonds exist to ensure the safety of the principal’s (vehicle dealer’s) customers. By posting this bond, the principal guarantees that he or she will adhere to all of the laws, rules and regulations found in the Arizona Revised Statutes. Some of these laws include:

  • posting a business sign at the front of the store that is visible from 300 feet in daylight
  • keeping and maintaining records of all vehicles
  • obtaining a legal permit to conduct any exhibition, display or sales event off premises
  • disclosing any damage and/or repairs to any buyer before the sale of a vehicle

If any malpractice takes place and a claim is brought against the bond, the principal is required to reimburse the surety after they have covered all of the damages up to the full bond amount.

Terms of the Arizona Auto Dealer Bond

Arizona motor vehicle dealer surety bonds are continuous in fashion, meaning that unless the surety or obligee decides to cancel this bond, it will remain in effect. If the surety does decide to cancel this bond, 60 days notice prior to cancellation is required.

When filling out the bond form, the county of the principal must be known in order to ensure that it is authorized correctly. This bond form covers automotive recyclers and wholesale motor vehicles also, so make sure to only mark the ‘motor vehicle dealer’ option. If you plan on obtaining multiple licenses covered by this bond form, a separate bond form must be submitted for each license.

How to become a motor vehicle dealer in Arizona

In the state of Arizona, getting bonded is just the first step to becoming legally authorized to act as a motor vehicle dealer. The Arizona Department of Transportation requires all vehicle dealers to be licensed. There are many requirements for this application process, but our team of experts is dedicated to making it as easy as possible for you. Below are a few major requirements that you’ll need to meet before being licensed:

  • submit a $100,000 surety bond
  • complete criminal record check
  • submit copy of fingerprints
  • submit copy of buy/sell agreement
  • acquire established place of business
  • have set business hours
  • acquire and display business sign

Ensure that you meet all of the licensing requirements for becoming an Arizona motor vehicle dealer by getting bonded today! Simply submit a bond request and one of our surety specialists will contact you within 24 hours!


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