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Arizona Auto Dealer Bond

July 2, 2018

Arizona Auto Dealer Bond | AmeriPro Surety Bonds | 844-589-9732

Arizona New Auto Dealer Bond | Arizona Used Auto Dealer Bonds|



AmeriPro Surety Bonds



AmeriPro Surety Bonds, a surety bond-only agency, helps applicants who are applying for their first-time auto dealer bond in Arizona.  We explain some of the requirements required for an Arizona auto dealer license.

We help you to obtain this surety bond at the best available pricing.

This article deals with those who need a surety bond and who are operating an auto dealer which sells new vehicles and /or used vehicles, whether it is their first-time seeking a surety bond, or the applicant is looking to renew their surety bond.



Arizona Auto Dealers



Arizona auto dealers come under the authority of the Arizona Department of Transportation (AZDOT), Motor Vehicle Division.

You are considered an auto dealer in Arizona if you sell 4 or more automobiles within a rolling 12-month period.

However, a person or company which sales automobiles wholesale is not considered a used auto dealer.



Applicants for an Arizona Auto Dealer License



Applicants for an Arizona auto dealer license (one selling new vehicles or used vehicles) will need to accomplish all of the following:

  • Completion of a Motor Vehicle Dealer application. There is a $15 fee to be included with the application at the time of submission;
  • Included in the application is a request for the type of auto dealer business (i.e. a sole proprietorship, LLC, corporation) being established;
  • In addition to indicating exactly where the auto dealership will be located, a copy of the lease agreement or proof of ownership of the location;
  • A statement as to the location of the financial records is required;
  • A personal point of contact, which includes the name, phone number, and email of the contact person;
  • Persons owning 20% or more the auto dealership must submit a release of authorization to investigate their criminal history. They must also submit to a fingerprint background check.  The fee for this is $22.00 (per person), made payable to the Department of Public Safety;
  • Applicants will need to disclose whether in the prior 5 years there has been any revocation, suspension, or cancellation of a similar contract (i.e. at another dealership), in Arizona, or any other state;
  • Applicants should note that, if in the prior 10 years before submitting the application, they have been convicted of a auto-related felony; or any other type of felony within the prior 5 years, their application will be denied; however, applicants who are denied have the right to appeal the denial of the application;
  • Applicants will be required to close what all the types of the vehicles that they will offer for sale. Moreover, applicants must also provide a notice of authorization from all auto companies whom their dealership will represent to the public. This is not applicable to used auto dealerships;
  • The state of Arizona will want to know whether there is an existing business at the same location. If so, an explanation will need to be provided;
  • Applicants will need to designate a registered agent if the business is not headquartered in Arizona.
  • An Arizona auto dealership, new or used, must have a business sign which is visible for 300 feet in the daylight;
  • The auto dealership applicant must indicate their hours of operation;
  • Used auto dealerships can use a trailer for their dealership; new auto dealerships must have an affixed location. Both must be able to accommodate at least two vehicles on the lot.



Licensing Fees



The initial fee is $15.  This fee is for filing of the application.

Again, there is the $22 for criminal records check.

The license fee is $100, but applicants only pay this after the MVD bills them.

The fee for a provision license is $10.

Each branch location has an application fee of $50.



Arizona Auto Dealer Bond Requirements



Arizona new and used car dealers are required to post a $100,000 surety bond.

The $100,000 surety bond requirement is for each county in which an auto dealership operates, if applicable.



Who the $100,000 Arizona Auto Dealer Shop Bond Protects



It should be made clear that an Arizona auto dealer bond is not an “insurance policy” for the dealership, new or used.

Rather, the Arizona surety bond protects the consumer public from fraud, theft, or other criminal acts of malfeasance an Arizona dealer might commit related to their responsibilities as an auto dealership.



Cost of the Arizona Auto Dealer Bond



The cost of the surety bond will hinge on two main things:

One is the applicant’s credit score.

The second is how many auto dealership bonds are required (Arizona requires a separate surety bond for each county in which the same dealership operates).

Applicants will typically pay between 1-3% of the face bond amount.

In some cases, depending on the cost of the surety bond, AmeriPro Surety Bonds may be able to secure monthly financing.



About AmeriPro Surety Bonds



AmeriPro Surety Bonds provides license & permits, notary, court, contractor, and fiduciary bonds throughout Arizona.

We also provide surety bonds of all types throughout the nation.

We would like the opportunity to earn your trust to serve your surety bond needs.



Please call AmeriPro Surety Bonds today at:  844-589-9732