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Arizona Dealer License

Arizona  Dealers Licenses are granted by the Arizona Department of Transportation Motor Vehicle Dealer Licensing Unit in Phoenix, Arizona.

To find out how to get an Arizona  Dealer License, you can call the Arizona Department of Transportation Motor Vehicle Dealer Licensing Unit in Phoenix  at 602-255-0072.

Arizona  Dealer License Requirements

1. Request Arizona Dealer License Application from Arizona Division of Motor Vehicles
2. You must have a place of business to sell your motor vehicles
3. You must have a display lot for your vehicles
4. You need a permanent business sign
5. Obtain a dealer garage insurance policy for your vehicle inventory
6. Provide a dealer surety bond in the amount of $100,000
7. Mail Arizona  Dealer License Application Packet to Arizona Division of Motor Vehicles

Request Arizona Dealer License Application from the Arizona Division of Motor Vehicles

You must obtain an Arizona Dealers License Application from the Arizona Division of Motor Vehicles. The easiest way to obtain your Arizona Dealer Application is to call the Arizona  Division of Motor Vehicles at 602-255-0072 and request a Dealer Application to be mailed to you. When you obtain your Arizona Dealer License Application, you will need to fill it out correctly without mistakes. If you have questions about the form, just call and they will gladly walk you through the Dealer Application step by step. When you have completed all the steps below, you will mail your Arizona Dealer License Application to the address above. Request your Dealer Application as soon as possible so you can start your AZ Dealers License application process.

You must have a place of business to sell your motor vehicles

In order to obtain your Arizona Dealer License, you must have a place of business to be used for the purpose of selling motor vehicles. You can locate your Arizona Car Dealership in any commercially zoned area that allows an automotive business. Be sure to check your local zoning laws to make sure you will be allowed to operate you business in your chosen location. You must keep all books, records, and licenses in your building at all times. If the State of Arizona wants to see your dealers license records, you must be able to produce these records at any time. Your place of business must contain a working telephone that is registered in your dealership name. The State of Arizona wants to make sure your customers are able to contact you at any time. Cell phones and cordless phones that reach from another building do not qualify. Remember, you must check your local zoning ordinances to make sure an automotive business is allowed at the location you have chosen for your Arizona Dealer License.

You must have a display lot for your vehicles

You must have a display lot with room for multiple motor vehicles. This lot must be for the exclusive use of your business. You must make sure that any neighboring business's customer's vehicles are not parked on your lot. Any vehicles located on your lot must be for sale and the lot must have an unobstructed view from the nearest public street. All of the vehicles you hold for resale must be located on this lot. You are not allowed to sell or "curb" your vehicles at any location that is not listed on your Arizona Dealers License.

You need a permanent business sign

You will need a permanent business sign. This sign can be on the exterior of the business building or erected on the display area. The sign must contain the name of your dealership and your hours of operation. The State of Arizona wants to make sure your customers know your hours of operation so they can contact you when necessary. The sign requirement must be met before you are granted and Arizona Dealer License.

Obtain dealer a garage insurance policy for your vehicle inventory

Before you get your Arizona Dealer License, you must obtain a dealer garage insurance policy. A dealer garage insurance policy covers you when you drive your demo's, it covers your customers when they are test driving your vehicles, and it covers you if someone falls and breaks a leg on your lot. You must have a dealer garage policy in effect before you obtain an Arizona  Dealers License.  Dealer garage insurance can also be very expensive. You can easily spend $200.00 per month for a bare bones liability policy and several thousand dollars a month for large comprehensive policies. Always get multiple quotes on dealer insurance because the cost varies greatly from agent to agent for the same coverage. One agent may charge $4,500 a year, while another agent may charge $1,500 for the exact same policy. Also, never let the sticker shock of dealer garage insurance quotes keep you from obtaining your Arizona Dealers License. As you become established, one good vehicle sale in January can pay your entire annual insurance premium. For a free quote on your dealer garage insurance policy, please go to the Dealer Garage Insurance page.

Provide a dealer surety bond in the amount of $100,000

When you apply for your Arizona Dealers License, you will be required to provide a dealer surety bond in the amount of $100,000. Wholesale dealers are required to have a bond in the amount of $25,000. A dealer surety bond can be obtained by an insurance agent and protects customers against dealer fraud. If a dealer is dishonest, and sells vehicles with mechanical problems without disclosing them, the dealer will have many unhappy customers. The more unhappy customers a dealer has, there is a very good chance the dealer can have their dealer license revoked. If the dealer is bankrupt and goes out of business after having their license revoked, customers can gain a financial settlement from the dealer bond. Don't worry, if you operate your Arizona car dealership with the highest ethical standards, you should never have a claim against your dealer surety bond. Dealer bonds are priced according to your credit scores. If you have good credit, you should be able to obtain a dealer surety bond for about $175.00 a year. If you credit is less than perfect, you may see much higher prices for your dealer surety bond. To get a free quote on your Arizona dealer surety bond, please visit the Dealer Surety Bond page.

Mail Arizona Dealer License Application Packet to Arizona Division of Motor Vehicles

When you have completed the steps above you will need to call the Arizona Division of Motor Vehicles to make sure you are including all the necessary documents in your Arizona Dealer License Application packet. Always call them before mailing your dealer packet so you can also find out the exact licensing fees to obtain your Arizona  Dealers License. The dealer license fees depend on the month of the year, along with the number of dealer license plates you request. Your check will need to be made out for the correct amount or your dealer license approval could be delayed by 4-6 weeks.

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Contact information for Arizona Dealers, Arizona dealers are regulated by the Arizona Motor Vehicle Division
Motor Vehicle Division
Dealer Licensing
P.O. Bo 2100
MD 552M
Phoenix, AZ 85001

Dealer Licensing Information
602-712-7571 (Ask for Dealer Licensing)
mvdlu@azdot.gov
www.azdot.gov

There are several types of dealers licenses in Arizona, here are the different type of Arizona dealer licenses you have:

New Motor Vehicle Dealer
Used Motor Vehicle Dealer
Wholesale Motor Vehicle Dealer
Public Consignment Auction Dealer
Wholesale Motor Vehicle Auction Dealer
Broker
Manufacturer
Manufacturer of Trailers

Step 1-Complete Application
The first thing you need to do to obtain an Arizona dealers license is to complete an Arizona dealer license application in it’s entirety.
If you make mistakes on the application it will be returned, so you want to spend some time and ensure there are not mistakes on the application.
A separate application must be submitted for each type of license, entity change, change location or name change, branch or subsequent dealer license.
If there is a change in business entity, after you become a licensed dealer, a new application must be submitted with all applicable paperwork, including a new bond and a new dealer license number will be assigned.
You can download your application at the www.azdot.gov/dealerlicensing, lets take a look at an Arizona dealers license application:

First magnify the application so you can see it a little better

Step 2 Dealer Surety Bond
You must obtain a dealers surety bond in order to obtain an Arizona dealers license. The bond must be a surety bond eecuted by an insurance or bonding company authorized to do business in Arizona, and must be in the amounts shown the table below.
You will need a $100,000 dealer surety bond if you are selling new motor vehicles, used motor vehicles or if you are becoming a public consignment auction dealer.
You will need a $25,000 dealer surety bond if you are a broker, Wholesale Auto Auction Dealer, or a Wholesale Motor Vehicle Dealer. You will need a $20,000 bond if you are an automotive recycler.
A separate original bond must be submitted for each 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 form a bonding company or possibly your insurance agent
Step 3-Background Check
In order to be granted an Arizona dealers license you must pass a background cheick that is conducted when you obtain your fingerprints. Each partner and each applicant who owns 20% or more of the dealership and when obtaining a dealers license for the first time must provide a personal history form and fingerprint card to enable the Motor Vehicle Division to conduct a criminal records check.
Here are the reasons the MVD will deny a dealers license:
1. 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.
2. 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.
3. A person on the dealer application has been convicted of a felony, immediately preceding the date the criminal records check is complete.
5. Within five years preceding the application, a person on the dealer application has had a similar license suspended, revoked or cancelled in Arizona or any other state.
You can request your fingerprint card electrononcally at www.azdot.gov/dealerlicensing or pick one up at the guard shack at
ADOT Building
1801 West Jefferson Street
Phoeni, Arizona 85007
You will then be able to have your fingerprints taken at any law enforcement office
.
Step 4-Building & Lot
You must have a building for your Arizona dealers license. Your business building must be a permanent enclosed building owned or leased by you, if you are leasing the building you will be using the lease must be for at lease 6 months, your lease can never end before you dealers license epires. with sufficient space to display two or more vehicles of a kind of vehicle you will be selling. The established place of business must be devoted mainly to the operation of your dealership
A dealer may use a trailer as you 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 court house’s planning a zoning division to ensure the location you want to use as your dealership meets all local zoning requirements for an Arizona Dealers license. Applicants should contact their local city or county office to ensure compliance with local zoning ordinances. All owners listed on a wholesale dealer license are required to be an Arizona Resident and have an Arizona Driver’s License or ID

Step 5 Business Sign & Photos
You must have a sign that is legible for 300 feet during daylight hours. The sign must be permanently erected on the ground or permanently attached to your business building. The sign must indicate that the business of a motor vehicle dealer or automotive recycler is conducted at or from the premises. I want to repeat that: The sign must indicate that the business of a motor vehicle dealer or automotive recycler is conducted at or from the premises. banners will not be accepted
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 4 sides of building, posted address & hours, office area,
Step 6 Registering your Business with the Arizona Corporation Commission..
The Arizona Secretary of State is not only Arizona’s leading election authourity, they also have oversight of business registrations in the state. They want a record of every business in Arizona, including the dealership you are getting ready to open. They maintain the Arizona Corporation Commission, You can register your business at the Arizona Secretary of States official website at www.azcc.gov or call them at 602-542-3135. This is an Arizona dealer licensing requirement.

Step 7 Computer and Internet Access
All dealers in the State of Arizona are required by State law to have a computer and internet access. This ensures you are able to complete all paperwork involved with an Arizona dealers license electronically. Including renewing licenses and plates, issuing TRP's, 30-Day General Use permits and corresponding with Arizona Motor Vehicle Division

I want to give you some more great contact information regarding titling vehicles when you have obtain your Arizona Dealers license, here it is:
For questions regarding title and registration, contact MVD:
Phoeni: 602.255.0072
Tucson: 520.629.9808
Elsewhere in Arizona: 800.251.586

Once you obtain your Arizona dealers license you must display the license prominently, you are going to work hard to obtain your Arizona dealers license, you are going to be proud when you obtain your Arizona dealers license, Arizona law requires that you display your dealers license prominently when it is granted, don’t shove it in some desk drawer, or lock in in a vault, frame your official Arizona dealers license and display it on the wall, all Arizona dealers licenses must be displayed prominently

Once again here is some valuable contact information if you are obtaining an Arizona dealers license for the first time or if you currently have an Arizona dealers license:
Motor Vehicle Division
Dealer Licensing
P.O. Bo 2100
MD 552M
Phoenix AZ 85001

Dealer Licensing Information
602-712-7571 (Ask for Dealer Licensing)
mvdlu@azdot.gov
www.azdot.gov

Arizona Dealer Licensing Information

Find out step by step Arizona Dealer License instructions by viewing Arizona Dealer License Steps

 

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Delus Johnson-Lead Instructor
Automobile Dealer Training Association