Who licenses auto dealers in Arizona?

In Arizona, motor vehicle dealers are licensed and regulated by the Arizona Department of Transportation (ADOT), Motor Vehicle Division (MVD), through its Dealer Licensing Unit.

What are the main steps to get an Arizona used dealer license?

Typical steps include choosing a license type, securing a compliant business location, registering your business and obtaining a Transaction Privilege Tax license, completing fingerprints and background checks for owners, purchasing the required dealer surety bond, gathering required documents and photos, and submitting an electronic application through ADOT’s online system.

How much is the Arizona dealer bond for a used motor vehicle dealer?

Arizona bond amounts vary by license type. Common guidance is that New Motor Vehicle Dealers, Used Motor Vehicle Dealers, and Public Consignment Auction Dealers generally require a $100,000 bond, while Brokers, Wholesale Motor Vehicle Dealers, and Wholesale Auction Dealers typically require a $25,000 bond and Automotive Recyclers require a $20,000 bond. You should always confirm current bond amounts directly with ADOT MVD because requirements can change.

Arizona Used Motor Vehicle Dealer License Requirements – 2025 Overview

Arizona requires a motor vehicle dealer license from the Arizona Department of Transportation (ADOT) Motor Vehicle Division (MVD) if you regularly sell vehicles for profit. This page focuses on the used motor vehicle dealer license, with notes that also apply to other license types.

Important: This is a general summary, not legal advice. Forms, fees, and bond amounts change. Always confirm details with ADOT MVD’s official dealer licensing pages before applying.

1. Who regulates Arizona dealers?

Dealer licensing in Arizona is handled by the ADOT Motor Vehicle Division – Dealer Licensing Unit. Applications are submitted electronically through the state’s online systems (AZ MVD Now / ADOT FORCE).

Regulator: Arizona Department of Transportation – Motor Vehicle Division (MVD)
Dealer licensing hub: ADOT MVD – Dealer Licensing
Licensing information: Motor Vehicle Dealer Licensing – Licensing Information
Application & forms: Motor Vehicle Dealer License Application Process & Forms

2. Arizona dealer license types (used-focused)

ADOT issues several motor vehicle–related licenses. For most retail used-car operations, the key category is the Used Motor Vehicle Dealer license, but other categories may apply depending on your business model.

Used Motor Vehicle Dealer – sells used motor vehicles at retail and may access dealer auctions.
New Motor Vehicle Dealer – sells new vehicles with manufacturer authorization.
Wholesale Motor Vehicle Dealer – sells vehicles only to other licensed dealers.
Public Consignment Auction Dealer – conducts public auctions with consigned vehicles.
Wholesale Motor Vehicle Auction Dealer – auctions vehicles only to licensed dealers.
Broker – acts as an intermediary, arranging sales for a fee.
Automotive Recycler, Manufacturer, and Trailer Manufacturer – for specialized operations.

Be sure to select the license type that matches how you intend to operate; bond requirements and documentation can differ by category.

3. Business location, office, and sign requirements

Arizona requires an established place of business that meets statutory standards before a dealer license can be issued.

A permanent, enclosed building or structure (owned or under at least a 6-month lease) devoted principally to the business of a dealer.
Sufficient space to display two or more vehicles of the type you are licensed to sell.
An office area and a locking file cabinet or other secure storage for dealer records.
A permanent business sign, legible from about 300 feet during daylight hours, permanently erected on the ground or affixed to the building. Banners are not accepted.
Posted business hours that match the hours listed on your application, maintained on site.
Wholesale dealers may operate from a residentially zoned location if permitted by local zoning; all listed owners must be Arizona residents with an Arizona driver license or ID.

Photos of the lot, office, sign, posted hours, and all four sides of the building must be uploaded with the application.

4. Business entity, tax registration, fingerprints, and bond

4.1 Business entity and Transaction Privilege Tax (TPT)

Form your legal entity (sole proprietor, partnership, LLC, or corporation) and register it with the Arizona Secretary of State or the Arizona Corporation Commission, as applicable.
Obtain a Federal Employer Identification Number (FEIN) from the IRS.
Obtain a Transaction Privilege Tax (TPT) License for your dealership location from the Arizona Department of Revenue.

4.2 Fingerprints and background checks

Owners with at least a specified ownership percentage (commonly 20% or more) must complete electronic fingerprints and a Statement of Personal History / Authorization to Release Information.
Background checks review recent criminal history, with particular attention to fraud and auto-related offenses.

4.3 Dealer surety bond and insurance

Purchase an Arizona motor vehicle dealer surety bond. Guidance from industry sources indicates current bond amounts typically are:
- $100,000 – New Motor Vehicle Dealer, Used Motor Vehicle Dealer, Public Consignment Auction Dealer
- $25,000 – Broker, Wholesale Motor Vehicle Dealer, Wholesale Motor Vehicle Auction Dealer
- $20,000 – Automotive Recycler
Always verify the latest bond requirements with ADOT MVD, as laws and policies can change.
Maintain appropriate garage or commercial liability insurance for your dealership and dealer plates.

5. Arizona dealer application process

ADOT now requires dealer license applications to be submitted electronically; paper applications are generally no longer accepted.

Choose your license type. Confirm whether you need a Used Motor Vehicle Dealer license or another category (wholesale, broker, etc.).
Set up your business location. Lease or purchase a qualifying site, install your permanent sign, and prepare the office and lot.
Register the business and obtain TPT license. Complete entity registration and tax licensing.
Complete fingerprints and background forms. Use the DPS / Fieldprint process and complete the Authorization to Release Information / Statement of Personal History for each required owner.
Obtain your dealer bond and insurance. Ensure the bond is issued in the correct amount and includes the required power of attorney.
Create a dealer account in AZ MVD Now / ADOT FORCE with the help of the Dealer Licensing Team and complete the online dealer application, uploading all required documents and photos.
Pay the required fees. Expect a filing fee (commonly around $15), a license fee (around $100), fingerprint/background fees per individual, and plate fees if you are obtaining dealer plates.
Monitor your application status. ADOT Dealer Licensing or ADOT FORCE will show updates; respond quickly to any requests for corrections or additional documents.

6. After approval: ongoing Arizona dealer compliance

Once your license is issued, ADOT expects you to maintain compliance at all times.

Renew your dealer license, bond, and insurance on schedule.
Maintain your established place of business, including sign, posted hours, and display space.
Use required ADOT forms and processes for titles, registrations, and dealer plates.
Follow Arizona statutes on advertising, “as-is” disclosures, and emissions-related disclosures where applicable.
Cooperate with any inspections or audits conducted by ADOT MVD.