State of Arizona - Motor Vehicle Dealer License Surety Bond
Required for used motor vehicle dealers in Arizona to obtain and maintain their dealer license. Protects consumers and the state from fraudulent business practices.
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About This Bond
The State of Arizona Motor Vehicle Dealer License Surety Bond is a financial guarantee required for businesses engaged in the sale of used motor vehicles. This bond ensures compliance with Arizona's motor vehicle dealer regulations and licensing requirements.
Who Needs This Bond: Used motor vehicle dealers operating in Arizona must obtain this surety bond as part of their licensing process. The bond is mandatory for maintaining an active dealer license and conducting legal vehicle sales operations within the state.
Protection and Coverage: The bond protects the State of Arizona and consumers from financial losses resulting from the dealer's failure to comply with applicable laws, regulations, or contractual obligations. Coverage includes protection against fraudulent practices, failure to transfer titles properly, or other violations of motor vehicle dealer regulations.
Bond Details: Available in amounts of $20,000, $25,000, or $100,000 depending on the specific requirements of the dealer's license type. The bond term is one year and is renewable annually to maintain continuous compliance with state licensing requirements.
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At a glance
Arizona Auto Dealer Bond Key Facts
Governed by Ariz. Rev. Stat. § 28-4362; Ariz. Admin. Code R17-5-402.
The basics
What Is an Auto Dealer Bond in Arizona?
An Arizona auto dealer bond is a surety bond you must file with the Arizona Department of Transportation Motor Vehicle Division (MVD) to get or renew a motor vehicle dealer license. The amount depends on your license type: $100,000 for new, used, and public consignment auction dealers; $25,000 for wholesale dealers, wholesale auction dealers, and brokers; and $20,000 for automotive recyclers. Arizona requires the bond under Arizona Revised Statutes section 28-4362.
Good to know - Required for every Arizona motor vehicle dealer license; the amount is set by license type. New, used, and public consignment auction dealers post $100,000; wholesale dealers, wholesale auction dealers, and brokers post $25,000; automotive recyclers post $20,000.
The bond is a promise that you will follow Arizona’s motor vehicle laws — for example, paying the taxes and fees you owe and delivering a clear vehicle title when you sell a car. The bond names the State of Arizona as the obligee, which is the party it protects.
If you break those rules and cause someone a financial loss, that person or the state can file a claim against your bond, up to its full amount. The bond protects the public, not you: if the surety company pays a claim, you must pay the surety back.
Arizona dealer bonds are annual and must stay on file the whole time you are licensed. A bond can be cancelled only after at least 60 days’ written notice to the MVD director, so you renew it each year to keep your license active.
Qualification
What You Need to Qualify for a Arizona Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, an Arizona motor vehicle dealer license with the ADOT MVD Dealer Licensing Unit.
- You know your license type — new, used, wholesale, wholesale auction, public consignment auction, broker, or automotive recycler — because it sets your bond amount.
- Your bond is written by a surety company authorized to do business in Arizona, with the State of Arizona as the obligee.
- You can keep the bond continuous — it stays on file with no lapse and renews each year.
- You have an established place of business in Arizona and your business details ready (legal name, ownership, and location).
Step by step
How to Get an Auto Dealer Bond in Arizona: Step by Step
Choose your Arizona dealer license type
Decide which license you need — new, used, wholesale, wholesale auction, public consignment auction, broker, or automotive recycler. Your license type sets your bond amount: $100,000 for new, used, and public consignment auction dealers; $25,000 for wholesale dealers, wholesale auction dealers, and brokers; and $20,000 for automotive recyclers.
Complete your Motor Vehicle Dealer Application
Download and fill out the Motor Vehicle Dealer Application (46-0408). Use the Dealer Application Checklist (46-0408c) to gather your supporting documents, such as proof of an established place of business in Arizona.
Motor Vehicle Dealer Application (46-0408)Get your Arizona Vehicle Dealer Bond
Buy your bond for the amount your license type requires and we handle the form. We issue your Arizona Vehicle Dealer Bond on the official Vehicle Dealer Bond form (38-1301) and, in most cases, file it with the MVD for you. There is no bond form for you to download or sign.
File your application, bond, and fees
Submit your completed Motor Vehicle Dealer Application, your issued bond, and your supporting documents to the MVD Dealer Licensing Unit, and pay the state fees. The Dealer Application Checklist lists everything that must be included.
Motor Vehicle Dealer Application Checklist (46-0408c)Keep your bond active
Arizona dealer bonds are annual. Renew your bond before it expires so your coverage never lapses — your dealer license cannot stay active without the bond on file. A bond can be cancelled only after at least 60 days’ written notice to the MVD director.
Paperwork
Arizona Dealer Bond Forms & Documents
The official dealer bond form — we issue this for you and, in most cases, file it with the MVD. You do not download or complete it.
View formThe dealer license application you complete and submit to the MVD.
View formThe MVD checklist of documents and fees to include with your application.
View formYou'll also need
Cost
How Arizona Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Arizona sets the bond by license type — $100,000 for new, used, and public consignment auction dealers; $25,000 for wholesale dealers, wholesale auction dealers, and brokers; and $20,000 for automotive recyclers. That figure is the coverage, the most a claim can collect.
You pay a premium, which is a small percentage of your bond amount. Underwriting sets your rate, mostly from your personal credit. The premium is separate from the MVD’s license fees.
Worked example
If you open a used car lot, your bond is $100,000. You do not pay $100,000 — you pay a premium on it, often a few hundred dollars a year for well-qualified applicants. A wholesale-only dealer’s bond is $25,000, so the premium is lower.
Filing
Filing Information
Arizona Department of Transportation, Motor Vehicle Division (MVD) — Dealer Licensing Unit
Filing notes
Arizona names the State of Arizona as the obligee and requires the bond on the official Vehicle Dealer Bond form (38-1301). We issue your bond on that form.
Arizona dealer bonds are annual and must stay on file without a lapse the whole time you are licensed. A bond can be cancelled only after at least 60 days’ written notice to the MVD director, so renew it on time each year.
File the bond with your Motor Vehicle Dealer Application (46-0408) and fees. In most cases we file the issued bond with the MVD Dealer Licensing Unit for you.
FAQ
Arizona Auto Dealer Bond FAQ
Yes. Every Arizona motor vehicle dealer license requires a surety bond, filed with the ADOT Motor Vehicle Division under Arizona Revised Statutes section 28-4362. The amount depends on your license type.
It is $100,000 for new, used, and public consignment auction dealers; $25,000 for wholesale dealers, wholesale auction dealers, and brokers; and $20,000 for automotive recyclers.
It depends on your license type. If you sell vehicles to the public — new, used, or public consignment auction — you need the $100,000 bond. Wholesale-only dealers, wholesale auctions, and brokers need $25,000, and automotive recyclers need $20,000.
Arizona dealer bonds are annual and must stay on file the whole time you are licensed. A bond can be cancelled only after at least 60 days’ written notice to the MVD director, so you renew it each year to keep your license active.
We issue your bond on the official Vehicle Dealer Bond form (38-1301), which names the State of Arizona as the obligee, and in most cases we file it with the MVD Dealer Licensing Unit for you. There is no bond form for you to complete.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
The Arizona Department of Transportation Motor Vehicle Division (MVD) Dealer Licensing Unit. You can reach the Dealer Licensing Unit at 1-888-488-1120.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with Arizona Department of Transportation, Motor Vehicle Division (MVD) — Dealer Licensing Unit before you file. This page is informational and not legal advice.
FAQ
Arizona Auto Dealer Bond Questions
The cost of a Arizona auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Arizona auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Arizona license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
