Motor Vehicle Dealers - New or New and Used Vehicles

The State of Arizona Motor Vehicle Dealer License Surety Bond is a financial guarantee required for businesses seeking to obtain or maintain a motor vehicle dealer license in Arizona. This bond ensures that licensed dealers comply with state regulations governing the sale of new vehicles or both new and used vehicles.

Motor vehicle dealerships operating in Arizona are required to secure this bond as part of their licensing requirements. The bond amount varies based on the dealer's business volume and type, with coverage levels of $20,000, $25,000, or $100,000. Dealers must maintain continuous coverage to keep their license active.

This surety bond protects the State of Arizona and consumers from financial losses resulting from a dealer's violation of state motor vehicle laws, fraudulent practices, or failure to fulfill contractual obligations. If a dealer fails to comply with licensing requirements or engages in prohibited activities, affected parties can file claims against the bond for compensation.

The bond term is one year and must be renewed annually to maintain an active dealer license. Bond premiums are typically based on the required coverage amount and the applicant's creditworthiness and business experience.