Thinking about opening your own car dealership in Arizona? First, you’ll need to get licensed and bonded. Here are the steps you need to take to get your business up and running.
Short on time? Read our Motor Vehicle Dealer License FAQ
Not sure if you need a dealer license? Check out this post on selling cars without a license.
How to get an Arizona Car Dealer License
Step #1: Complete Arizona Dealer License Application
You can get your Arizona motor vehicle dealer application online.
Your completed application must include notarized signatures of all the responsible parties (individual, partners and/or the officer of the corporation).
Step #2: Get a Criminal Record Check
Anyone who owns 20% or more of the company must undergo a criminal record check. The Arizona Motor Vehicle Division is strict and won’t approve anyone who has been convicted of fraud or auto-related felony within the last 10 years.
Concerned about a previous felony? Check out this post on getting a dealer license with a felony.
To view a list of law-enforcement agencies where fingerprinting services are available, click here.
Step #3: Purchase an Arizona Motor Vehicle Dealer Bond
Not sure how to get an Auto Dealer Bond? Use this interactive tool to help you out.
Arizona has set the bond amount at $100,000.
The price you pay for your bond will be between 1-15% of the total bond amount (so $1,000 – $15,000).
To see what you’d pay for a bond, get a free quote below:
About the Arizona Motor Vehicle Dealer Bond
An Arizona Motor Vehicle Dealer Bond is a type of surety bond that allows you to legally sell vehicles at retail. The bond protects your customers should you not run your business ethically and honestly.
If you fail to deal vehicles according to the law, someone can make a claim against your surety bond.
Step #4: Submit
Submit your Arizona Car Dealer License Application to the Arizona Motor Vehicle Division at the following address. Be sure to include your Arizona Motor Vehicle Dealer Bond, fingerprints, and any other necessary paperwork:
Arizona Motor Vehicle Division
P.O. Box 2100
Phoenix, AZ 85001
The paperwork process takes approximately three to four weeks.
After successful approval of the criminal record check, you will receive an invoice for your Arizona motor vehicle dealer license. Your license will be issued upon payment of your licensing fee. This fee will vary depending on how large your dealership is.