Notify the Arizona Dealer Licensing Unit

It is essential to notify the Arizona Dealer Licensing Unit whenever you make changes to your business. These changes include altering your business hours, updating your email address, changing your business name or location, or adding or removing any owners, officers, or agents of the license.

Additionally, if your dealership ceases operations and you want to cancel your dealership, staying in contact with the Arizona Dealer Licensing Unit is a crucial step. It’s advisable to stay in touch and seek guidance if you’re unsure about compliance.

Legal Use of Dealer License Plates

Arizona law requires that you display your dealer’s license prominently. Let’s go over how to legally use your dealer license plates.

A dealer license plate can be used by any owner, employee, or prospective buyer in connection with your dealership's business. It can also be used for personal purposes by a full-time employee (not part-time). Always ensure that the assignment is recorded on a dealer plate audit form.

Dealer plates can also be used to transport vehicles from an auction, such as bringing a newly purchased vehicle back to your location or taking a trade-in to an auction.

Illegal Dealer License Plate Usage

It’s crucial to understand what constitutes illegal use of dealer license plates. A dealer plate must never be placed on a service vehicle. For example, if you place a dealer plate on a truck to test-drive it, you cannot hook a trailer to that truck for hauling cars, as that would make it a service vehicle.

Never place a dealer plate on a vehicle that is being leased, rented, or has already been sold. The dealer plate is only for vehicles that are held for resale.

Dealer Plate Audit Form

Every Arizona dealer must maintain a Dealer Plate Audit Form. This form tracks the assignment of dealer plates, including the name, address, date, and time assigned, as well as vehicle details (such as make, model, and VIN). This record must be kept for at least 3 years.

It’s important to keep track of any full-time employees or customers who use your dealer plates, as the form could serve as evidence in case of any legal issues, such as a crime occurring during a test drive.

Temporary Registration Plate (TRP)

When selling a vehicle, you must issue a Temporary Registration Plate (TRP) to the buyer. This plate allows the customer to drive the vehicle legally until the official registration plates arrive. However, a TRP can only be issued for vehicles sold to Arizona residents by your dealership.

The TRP is valid for 45 days and must include the dealer’s information, VIN, and issue date. The dealer is also responsible for obtaining the vehicle’s title and registration within 30 days.

Other Dealer Permits

30-Day General Use Permit

If a TRP expires and the title or registration has not been obtained, a 30-Day General Use Permit can be issued. This permit is only available when necessary paperwork is delayed.

90-Day Non-Resident Permit

For out-of-state buyers, a 90-Day Non-Resident Permit should be issued. This permit allows the buyer to legally drive the vehicle while they take care of registration in their home state.

Managing Dealer License Plates and Documentation

If you need additional dealer license plates, they can be ordered through your MVDNow Dealer Suite. Remember that the number of dealer plates you have may affect your insurance rates, so it’s wise to minimize the number of plates to keep costs low.

You can manage all your dealership's compliance documents, including TRP issuance, insurance verification, and more, using the MVDNow Dealer Suite. For more information, visit arizonadealers.com.