How to Get a Dealer License in Arizona
In Arizona, dealer licensing runs through the Arizona Department of Transportation, Motor Vehicle Division (ADOT MVD) — Dealer Licensing. To get a used car dealer license in Arizona you'll need a registered business, a compliant location, a $100,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Arizona auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Arizona Department of Transportation, Motor Vehicle Division (ADOT MVD) — Dealer Licensing's current pages before you file.
- Surety bond
- $100,000
- License term
- One-year license term; renew (license continuation) annually through the AZ MVD Now Dealer Suite before expiration.
- Sales threshold
- Selling seven (7) or more used motor vehicles in a continuous 12-month period requires a used motor vehicle dealer license (ARS 28-4301).
- Pre-licensing
- Arizona does not impose a statewide, state-mandated pre-licensing dealer-education course or written exam for a used-vehicle dealer license (unlike California or Florida). The real gates are a bonded, commercially-zoned established place of business, an electronic application through AZ MVD Now, and a fingerprint criminal background check for 20%+ owners — verify current requirements with ADOT MVD Dealer Licensing.
License types in Arizona
| License type | What it covers |
|---|---|
| Used Motor Vehicle Dealer | Buying, selling, auctioning, or exchanging seven or more used motor vehicles in a continuous 12-month period, including retail sales to the public (ARS 28-4301). |
| New Motor Vehicle Dealer | Selling new vehicles under a franchise, plus used vehicles taken in trade or purchased for resale — a separate franchise relationship is required on top of the license. |
| Wholesale Motor Vehicle Dealer | Selling used vehicles ONLY to other licensed dealers — no retail sales to the public are permitted. |
| Wholesale Motor Vehicle Auction Dealer | Providing dealer-to-dealer auction services without buying, selling, or owning the vehicles auctioned in the ordinary course of business. |
| Public Consignment Auction Dealer | Running live public auctions on a consignment basis with a licensed auctioneer calling and accepting bids. |
| Automotive Recycler | Dismantling, recycling, or selling used parts/vehicles for salvage — a separate ADOT licensing category with its own bond. |
| Broker | Arranging or assisting a consumer's purchase of a vehicle for a fee, without holding dealer inventory. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer application filing fee | $15 | Per ARS 28-4302; filed electronically through the AZ MVD Now Dealer Suite |
| Annual license fee | $100 | $400 if the dealer holds third-party lender / financing contracts (ARS 28-4302) |
| License continuation (renewal) fee | $100 | $250 for dealers with third-party lender contracts; renewed annually |
| Provisional license filing | $10 | Filed with the dealer/recycler application |
| Branch license | $50 | Per additional licensed location, annually |
| Off-premises exhibition / display permit | $25 | Per application, for approved off-site sales events |
| Surety bond premium | Varies | A fraction of the $100,000 (or $25,000 wholesale) face amount — typically ~0.75%–2%/yr depending on credit; verify with a surety |
| Fingerprint / criminal background check | Varies | State + federal check required for any owner holding 20% or more (ARS 28-4361) |
Step by step
- Form and register your business entity with the Arizona Corporation Commission and file any trade-name (DBA) paperwork.
- Secure a permanent, commercially-zoned place of business with a compliant business sign, office, and vehicle display area.
- Obtain the surety bond — $100,000 for retail (used/new) or $25,000 for wholesale-only.
- Complete fingerprinting and the state + federal criminal background check for every owner holding 20% or more.
- Set up an AZ MVD Now Dealer Suite account and submit the dealer license application electronically, paying the filing and annual license fees.
- Register for an Arizona Transaction Privilege Tax (TPT) license with the Arizona Department of Revenue to collect vehicle sales tax.
- Pass the ADOT site inspection of your place of business, then receive your license and dealer plates.
Premises & temp tags
Location: A permanent, commercially-zoned place of business in Arizona with a permanent business sign, an office, and space to display vehicles — the location is inspected before the license is issued. Wholesale-only dealers face lighter premises rules but still need a bona fide established place of business; home-based retail lots generally do not qualify.
Temp tags / plates: Arizona dealers issue a temporary registration to the buyer at the point of sale and report the sale through the ADOT/AZ MVD Now dealer system, which produces the buyer's temporary credential until permanent plates and title are issued. The state also offers a Restricted Use 3-Day Permit and a 30-Day General Use Permit online through AZ MVD Now. Confirm the current point-of-sale temporary registration procedure with ADOT.
Arizona-specific things to know
- The trigger is seven vehicles: sell 7 or more used vehicles in a rolling 12-month period and Arizona requires you to be a licensed dealer.
- A wholesale motor vehicle dealer license carries a lower $25,000 bond but can sell ONLY to licensed dealers — a single retail sale to the public is a violation.
- Licensing is fully electronic through AZ MVD Now / the Dealer Suite; ADOT no longer accepts paper dealer applications or plate requests.
- Every owner with a 20%+ interest must be fingerprinted and clear a state and federal background check before the license is issued (ARS 28-4361).
- Dealers must hold an Arizona Transaction Privilege Tax (TPT) license and collect vehicle sales tax; qualifying nonresident/out-of-state buyers may claim an exemption on the appropriate form.
Official Arizona resources
- ADOT MVD — Dealer Licensing ↗
- AZ MVD Now (Dealer Suite / online services) ↗
- Arizona Revised Statutes, Title 28 (azleg.gov) ↗
Arizona dealer license FAQ
How much does a dealer license cost in Arizona?+
Dealer application filing fee: $15; Annual license fee: $100; License continuation (renewal) fee: $100; Provisional license filing: $10; Branch license: $50; Off-premises exhibition / display permit: $25; Surety bond premium: Varies; Fingerprint / criminal background check: Varies. Plus the $100,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Arizona?+
Arizona requires a $100,000 surety bond. $100,000 surety bond for dealers that sell to the public (used and new motor vehicle dealers). Wholesale motor vehicle dealers and wholesale auction dealers post a lower $25,000 bond; automotive recyclers post a separate bond. Amounts are set under ARS Title 28, Chapter 10 — confirm the current figure for your license class with ADOT before binding.
Do you need a physical lot to get a dealer license in Arizona?+
A permanent, commercially-zoned place of business in Arizona with a permanent business sign, an office, and space to display vehicles — the location is inspected before the license is issued. Wholesale-only dealers face lighter premises rules but still need a bona fide established place of business; home-based retail lots generally do not qualify.
How many cars can you sell in Arizona without a dealer license?+
Selling seven (7) or more used motor vehicles in a continuous 12-month period requires a used motor vehicle dealer license (ARS 28-4301).
How long is a Arizona dealer license valid?+
One-year license term; renew (license continuation) annually through the AZ MVD Now Dealer Suite before expiration.
Is dealer training or an exam required in Arizona?+
Arizona does not impose a statewide, state-mandated pre-licensing dealer-education course or written exam for a used-vehicle dealer license (unlike California or Florida). The real gates are a bonded, commercially-zoned established place of business, an electronic application through AZ MVD Now, and a fingerprint criminal background check for 20%+ owners — verify current requirements with ADOT MVD Dealer Licensing.
How do temporary tags work for Arizona dealers?+
Arizona dealers issue a temporary registration to the buyer at the point of sale and report the sale through the ADOT/AZ MVD Now dealer system, which produces the buyer's temporary credential until permanent plates and title are issued. The state also offers a Restricted Use 3-Day Permit and a 30-Day General Use Permit online through AZ MVD Now. Confirm the current point-of-sale temporary registration procedure with ADOT.
Data verified 2026-07-17. Requirements change — confirm with the Arizona Department of Transportation, Motor Vehicle Division (ADOT MVD) — Dealer Licensing before filing.
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