Auto dealer license requirements arizona

All of the vehicles you hold for resale must be located on this lot. You are not allowed to sell or "curb" your vehicles at any location that is not listed on your Arizona Dealers License. You will need a permanent business sign. This sign can be on the exterior of the business building or erected on the display area. The sign must contain the name of your dealership and your hours of operation. The State of Arizona wants to make sure your customers know your hours of operation so they can contact you when necessary.

The sign requirement must be met before you are granted and Arizona Dealer License. Before you get your Arizona Dealer License, you must obtain a dealer garage insurance policy. A dealer garage insurance policy covers you when you drive your demo's, it covers your customers when they are test driving your vehicles, and it covers you if someone falls and breaks a leg on your lot. You must have a dealer garage policy in effect before you obtain an Arizona Dealers License.

Dealer garage insurance can also be very expensive. Always get multiple quotes on dealer insurance because the cost varies greatly from agent to agent for the same coverage. Also, never let the sticker shock of dealer garage insurance quotes keep you from obtaining your Arizona Dealers License. As you become established, one good vehicle sale in January can pay your entire annual insurance premium.

For a free quote on your dealer garage insurance policy, please go to the Dealer Garage Insurance page. A dealer surety bond can be obtained by an insurance agent and protects customers against dealer fraud. If a dealer is dishonest, and sells vehicles with mechanical problems without disclosing them, the dealer will have many unhappy customers. The more unhappy customers a dealer has, there is a very good chance the dealer can have their dealer license revoked. If the dealer is bankrupt and goes out of business after having their license revoked, customers can gain a financial settlement from the dealer bond.

Don't worry, if you operate your Arizona car dealership with the highest ethical standards, you should never have a claim against your dealer surety bond. Dealer bonds are priced according to your credit scores. If you credit is less than perfect, you may see much higher prices for your dealer surety bond. To get a free quote on your Arizona dealer surety bond , please visit the Dealer Surety Bond page.

When you have completed the steps above you will need to call the Arizona Division of Motor Vehicles to make sure you are including all the necessary documents in your Arizona Dealer License Application packet.

Always call them before mailing your dealer packet so you can also find out the exact licensing fees to obtain your Arizona Dealers License. The dealer license fees depend on the month of the year, along with the number of dealer license plates you request. Your check will need to be made out for the correct amount or your dealer license approval could be delayed by weeks.

If you make mistakes on the application it will be returned, so you want to spend some time and ensure there are not mistakes on the application. A separate application must be submitted for each type of license, entity change, change location or name change, branch or subsequent dealer license.

If there is a change in business entity, after you become a licensed dealer, a new application must be submitted with all applicable paperwork, including a new bond and a new dealer license number will be assigned. You can download your application at the www.

The bond must be a surety bond eecuted by an insurance or bonding company authorized to do business in Arizona, and must be in the amounts shown the table below.

A separate original bond must be submitted for each application and for each county in which the licensee has an established place of business. A power of attorney must be attached to the bond. The bond must be signed by the individual, all partners if a partnership or one corporate officer if incorporated.

Bonds may not be handwritten and must contain all required signatures and an embossed stamp, seal or sticker. The bond is continuous and may be canceled only upon receipt of 60 days written notice from the bond company to Dealer Licensing. You can obtain a dealer surety bond form a bonding company or possibly your insurance agent Step 3-Background Check In order to be granted an Arizona dealers license you must pass a background cheick that is conducted when you obtain your fingerprints.

Here are the reasons the MVD will deny a dealers license: 1. A dealer license applicant made a misrepresentation, omission or misstatement on the Arizona dealer application to conceal a matter that may cause the application to be denied. Refer to the Arizona Department of Revenue DOR licensing guide about obtaining a business license to operate your business, including information about taxes.

After your application has been filed, you will be billed for later payments of any applicable fee among the following:. Types of Dealer Licenses in Arizona Arizona makes available—and requires, depending on your situation—several motor vehicle dealer licenses: New Car Dealer. Used Car Dealer. A person—other than a new car dealer—who sells or negotiates the sale, buys, exchanges, or auctions 7 vehicles or more in 12 months.

Public Consignment Auction Dealer. Wholesale Dealer. Wholesale Auction Dealer. Auto Recycler. Also, ADOT recommends contacting the following departments if you have any questions about which license you need: Car Dealer Licensing : AIADA provides information related to required license-specific compliance classes.

The application comes with detailed instructions on completing the application. Make sure you review and follow the instructions carefully to ensure acceptance of your application. Provide your fingerprint cards Form FD in an envelope sealed by the fingerprint technician.