If you want to obtain an Arizona dealer’s license, all you need to do is submit a dealer application to the Arizona Motor Vehicle Division, obtain a dealer surety bond from an insurance agency or bonding company, submit your fingerprints, have a building and lot (if you are a wholesale dealer, you will not need a lot), post a sign on your building, and submit some photographs. You also need to register your business with the Arizona Corporation Commission and have a computer and internet access. Below, we’ll show you how to easily obtain your Arizona dealer’s license in 7 easy steps.
7 Easy Steps to Get Your Arizona Dealer’s License
Step 1 - Submit Arizona Dealer License Application Online
The first step in obtaining an Arizona dealer's license is completing the Arizona dealer license application. Make sure to avoid mistakes on your application, as errors will lead to delays. A separate application must be submitted for each type of license. In your Arizona Dealer License Course, we will cover every step of the online application. This will ensure that your Arizona dealer license application is submitted correctly to the Arizona Deparment of Transportation. When you submit a correct application, you will sail through the dealer licensing process and get your dealers license back from the State of Arizona as soon as possible.
Find out more about Arizona Dealer License Requirements on our Blog.
Step 2 - Obtain Dealer Surety Bond
You must obtain a dealer surety bond to get an Arizona dealer's license. Depending on the type of dealer, the bond amount varies. Refer to the required bond amount based on your business type:
- $100,000 for new/used vehicle dealers
- $25,000 for wholesale motor vehicle dealers
- $20,000 for automotive recyclers
A separate original bond must be submitted for each Arizona license 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 from a bonding company or possibly your insurance agent.
In your Arizona dealer license course I will show you how to obtain the cheapest bonds. We have build a dealer surety bond quoting system that will allow your bond to be sent to the best bond carrier based on your credit score. This process can save you days of research and will not require you to contact multiple bonding companies on your own. Let us to the work for you and help you get your bond. The automated bond quoting system is covered in your Arizona Dealer Pre-License Course
Step 3 - Background Check
You must pass a background check by submitting your fingerprints. Any misrepresentation on the application or felony convictions can result in a denial of your license. In your dealer training course I will show you the closed location to your home or business so you can complete your background check. The State of Arizona wants to make sure they are not issuing an Arizona dealer license to someone that has been stealing cars, or someone that has stolen money from a previous employer.
Here are the reasons the State of Arizona will deny a dealer’s license:
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.
A person on the dealer application has been convicted of fraud or an auto-related felony in a state within the ten years immediately preceding the date the criminal records check is complete.
A person on the dealer application has been convicted of a
felony immediately preceding the date the criminal records check is
complete.
Within five years preceding the application, a person on the dealer application has had a similar license suspended, revoked, or canceled in Arizona or any other state.
The State just wants to make sure you did not just get out of prison for running a Nationwide auto theft ring. I will show you how to quickly and easily complete your background check.
SStep 4 - Find License Location
Your business must have a physical location in order to apply for an Arizona dealers license.
A dealer may use a trailer as your building, but state law requires you to remove the wheels. A wholesale motor vehicle dealer may operate from a location zoned for residential use. Whether you are a retail dealer or a wholesale dealer, you must meet local zoning requirements. You can contact the city hall or county courthouse’s planning and zoning division to ensure the location you want to use as your dealership meets all local zoning requirements for an Arizona dealer’s license. Applicants should contact their local city or county office to ensure compliance with local zoning ordinances.
The building must be owned or leased for at least six months and comply with local zoning laws. Wholesale dealers may operate from residentially zoned locations, but retail dealers must meet certain requirements. In your course I will cover the minimum requirements for holding an Arizona dealers license. You might want to start as a wholesaler without a lot to get your foot in the door. Many Arizona wholesalers decide to expand later on and obtain a display area for higher profits. Or, you may decide that you never want a lot and want to operate as a wholesale dealer for many years. After you take your dealer license training course, you will be able to decide which type of Arizona dealer license is best for you.
Step 5 - Create Business Sign and Submit Photographs
Your business must display a legible sign visible from 300 feet. The sign must indicate that a motor vehicle dealer business is conducted at that location. You must also submit photos of your building, including the sign, display lot, office area, and other key locations.
A wholesale motor vehicle dealer or broker must erect a permanent sign (no size requirement) at the entrance of the place of business. The sign must state the business name and indicate that the business of a wholesale motor vehicle dealer or broker is conducted at or from the premises. You must also enclose photographs of your building, including photos of the business, sign, display lot, all four sides of the building, posted address & hours, and office area.
We will cover the business sign and exact photograph requirements in your Arizona dealer training course.
Step 6 - Register With Arizona Corporation Commission
Register your business with the Arizona Corporation Commission via their official website at www.azcc.gov or by calling 602-542-3135. The Arizona Corporations Commission wants a record of your new business. This is a requirement for obtaining your Arizona dealer’s license.
Step 7 - Must Have Internet Access
Arizona law requires all dealers to have a computer and internet access. This allows you to manage paperwork, renew licenses, and correspond electronically with the Arizona Motor Vehicle Division. This is one of the easiest steps that you have probably already competed.
Contact Information
If you are a licensed dealer or are applying for your Arizona dealer’s license, here’s important contact information:
- Motor Vehicle Division Dealer Licensing: mvdlu@azdot.gov
- Phone: 602-712-7571 (Ask for Dealer Licensing)
- Website: www.azdot.gov
About the Arizona Dealer Training Course
I’m Delus Johnson with Dealer Training. Our Arizona Dealer Training Course is designed for anyone looking to obtain an Arizona dealer’s license. If you are interested, please click the blue “Enroll” button to start your training course.