Why is the Arizona Department of Motor Vehicles requiring a Motor Vehicle Dealer Surety Bond?
Arizona Motor Vehicle Dealer Surety Bonds are required by the Arizona Department of Transportation for auto dealers who regularly purchase and sell more than four automobiles on an annual basis. Dealers required to obtain an Arizona Motor Vehicle Dealer Surety Bond include new and used auto dealers, as well as public consignment auction dealers. These surety bonds are issued in the amount of $100,000.
How do I get my Arizona motor vehicle dealer license?
Anyone who wishes to become a motor vehicle dealer must submit a completed application to the Arizona Department of Transportation and provide the following:
- Fingerprint Card
- Authorization to Release Information Statement of Personal History (form 46-0407)
- Copy of your Transaction Privilege Tax License with physical address of dealership
- Articles of Incorporation/Organization
- Dealer Plat Application, if applicable
- Copy of the lease agreement/ownership document
- Payment of all applicable fees
Viable applicants will be contacted for additional information. If your application is considered non-viable, the application, documents and fees will be returned to you with a summary of additional requirements to be resubmitted.
How does an Arizona Motor Vehicle Dealer Surety Bond work?
Arizona Motor Vehicle Dealer Surety Bonds guarantee that the principal (vehicle dealer) complies with all applicable laws and regulations, including those established by the Arizona Department of Transportation and the Arizona Revised Statutes. This bond also protects any person who suffers a loss because of:
- Non-payment by the principal of a title, registration or other related fee or tax paid to the principal by that person
- The principal’s failure to deliver in conjunction with the sale of the vehicle, a valid vehicle title certificate free and clear of any prior owner’s interest and all liens, except a lien created by or expressly assumed in writing by the buyer of the vehicle
If the principal does not comply with the terms of the bond, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
What are the terms of the Arizona Motor Vehicle Dealer Surety Bond?
Arizona Motor Vehicle Dealer Surety Bonds are filed with the Arizona Department of Transportation (ADOT) and renew on an annual basis. The bond term is continuous and remains in full force and effect until canceled. The surety can cancel the bond at anytime by providing a sixty (60) day written notice to ADOT prior to the effective cancelation date. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How do I get an Arizona Motor Vehicle Dealer Surety Bond?
The first step is to complete our quick online application for your free bond quote. It only takes about five minutes to complete, and one of our underwriters will be in contact with you within a couple of hours with your pricing.
After you receive approval, you will sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day as we receive your signed documents and payment.
How much does an Arizona Motor Vehicle Dealer Surety Bond cost?
Arizona Motor Vehicle Dealer Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer a variety of approvals, with rates starting at $675 for well-qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing.
Can I get an Arizona Motor Vehicle Dealer Surety Bond with bad credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Arizona Motor Vehicle Dealer Surety Bonds. Our strong surety relationships help get you the lowest possible price each year. No need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
- Arizona Department of Transportation – Dealer Services and Licensing
- Arizona Revised Statutes – Title 28, Chapter 10
- Arizona Motor Vehicle Dealer License Application
- Arizona Vehicle Dealer Bond
- Arizona Vehicle Dealer Licensing Information
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Motor Vehicle Dealer Surety Bonds – Arizona
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