Aircraft Dealer Bond: What It Is & How It Works

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What is an aircraft dealer bond?

An aircraft dealer bond is a type of license and permit bond that ensures aircraft dealers are licensed in their state and operating lawfully. This may include following industry laws and regulations and properly filing taxes, penalties, interest payments, and other fees.

An aircraft dealer bond helps protect customers by guaranteeing that their dealer abides by their sales agreement terms.

Where are aircraft dealer bonds required?

The Washington State Department of Transportation (WSDOT) and Arizona Department of Transportation (ADOT) require this bond.

The ADOT states that the bond’s purpose is to “guarantee payment of all outstanding taxes and fees and the faithful performance of all sales and contracts or agreements.” According to the WSDOT, you’re an aircraft dealer if you engage “in the business of selling, exchanging, or acting as a broker of aircraft within a calendar year.”

Get Your Aircraft Dealer Bond:

Quick Takeaways

  • Aircraft dealer bonds help protect customers by guaranteeing that their dealers abide by sales agreement terms.
  • The Washington State Department of Transportation and Arizona Department of Transportation require this bond.
  • In Arizona, aircraft brokers are required to file a $10,000 bond. In Washington, they need a $25,000 bond.
  • In Arizona, the bond is continuous until you or your surety cancels it.

How to Become an Aircraft Dealer

In short, an aircraft dealer (also called an aircraft broker) manages transactions between an aircraft buyer and seller. Here are the five basic steps to becoming an aircraft dealer:

  1. Gain experience in aviation, sales, marketing, account management, and business development.
  2. Learn essential skills needed to be successful in your new career.
  3. Go through the proper training.
  4. Become registered and bonded in your state (if applicable).
  5. Apply for your aircraft dealing license by filing with your state.

How does an aircraft dealer bond work?

By purchasing this bond, an aircraft dealer agrees to comply with any applicable local, state, and federal laws and licensing requirements for managing an aircraft dealership. If the dealer acts dishonestly or engages in fraud or another wrongful act (such as violating a sales agreement), the customer may file a claim against the bond.

The three parties involved in an aircraft dealer bond include:

  • Principal: An aircraft dealer who obtains the bond
  • Obligee: The state that requires the bond
  • Surety: The company that issues the bond

In Arizona, you’re required to file a $10,000 bond. In Washington, you will need a $25,000 bond. The cost of your bond may depend on your financial credentials, your state, the bond amount, and the term length. Generally, you may expect to pay between 1-5% of the bond amount. If you have poor credit, you could pay more.

Keep in mind that in Arizona, the bond is continuous until canceled.

An aircraft dealer bond helps prevent the following:

  • Unlawful sales
  • Failure to properly file tax records, interest payments, penalties, and other related fees on time
  • Sales term agreement violations
  • Failure to operate according to applicable laws and standards
  • Failure to obtain an aircraft dealer license

How to Get an Aircraft Dealer Bond in Your State

ZipBonds is the fastest and most secure way to get the bond you need. We take out the pain of long, complicated applications. In fact, most of our bonds are approved and processed immediately. Select your state to get started.



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.