Arizona Auto Dealer Bond

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What is an Arizona auto dealer bond?

The Arizona Department of Transportation (ADOT) requires auto dealers to be licensed and bonded. An Arizona auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.

  • New and used motor vehicle dealers and public consignment auction dealers must post a $100,000 bond. 
  • Wholesalers and brokers must post a $25,000 bond.
  • Automotive recyclers need a $20,000 bond. 

Dealers must post a separate original bond for every county where they have a business place. See the state’s Compliance Requirements for detailed information and definitions.

Get Your Auto Dealer Bond:

What do Arizona auto dealer bonds cost?

Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials. ZipBonds can offer Arizona motor vehicle dealer bonds for as low as $750.

Once you’ve purchased your motor vehicle dealer bond, remember to renew it before its expiration date each year. If you’re buying your bond from us, we’ll send out a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.

How to Get Your Arizona Auto Dealer License

Follow this general process to apply for your motor vehicle dealer license online:

Visit the ADOT website for detailed instructions on how to set up your ADOT account and to submit all the necessary information to apply for your license successfully.

Frequently Asked Questions

The Arizona Department of Transportation Motor Vehicle Division regulates the industry (licensing and bonding).

You can renew your Arizona motor vehicle license through ServiceArizona Secure Gateway Access. Make sure you renew your license before it expires each year.

You must tell your surety provider in time for them to give Dealer Licensing at least 60 days written notice to cancel your bond.

A customer can file a claim if a dealer commits a fraudulent, unethical, or other unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.

Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.

Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.

Here are some issues specific to the State of Arizona that you must avoid:

  • Failing to remit title, registration, or other related fees or taxes to the state
  • Failing to deliver, in conjunction with a sale, a clean title to a customer

How to Get Your Arizona Auto Dealer Bond

ZipBonds offers the fastest and most secure option for getting auto dealer bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent directly. Many of our bonds can be processed and issued immediately online.



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.