Arizona Vehicle Dealer Bond
The Arizona Vehicle Dealer Bond is meant to protect consumers against a car dealer’s failure, both intentional and unintentional, to deliver a valid vehicle title which is clear of liens and the dealer’s non-payment of title, registration, and other fees/taxes which have been paid to the dealer by the consumer. Please click on the “Apply Online” button below to find out how much your bond will cost.
Who needs an Arizona Vehicle Dealer Bond?
There are several types of car dealers recognized by the Arizona Department of Transportation – Motor Vehicle Division which are required to post an Arizona Vehicle Dealer Bond. The car dealer types and definitions are listed below:
- Automotive Recycler – A person/entity who buys motor vehicles with the purpose of dismantling the vehicle to sell individual parts. The recycler must dismantle six or more vehicles per year to be classified as an automotive recycler.
- New Motor Vehicle Dealer – A person/entity who buys or sells new motor vehicles.
- Public Consignment Auction Dealer – A person/entity who engages in both the business of conducting live auctions with a licensed auctioneer and providing auctions services to the public on a consignment basis.
- Used Motor Vehicle Dealer – A person/entity other than a new car dealer, public consignment auction dealer, or wholesale motor vehicle auction dealer who buys, sells, negotiates, etc. to sell four or more used vehicles over a 12 month period.
- Wholesale Motor Vehicle Auction Dealer – A person/entity who provides wholesale auction services to other licensed dealers and does not buy, own, or sell their own vehicles.
- Wholesale Motor Vehicle Dealer – A person/entity who sells vehicles only to other license motor vehicle Dealers.
What Arizona Vehicle Dealer Bond amount do I need?
The surety bond amount needed solely depends on your license type. For example: An automotive recycler’s bond amount will be less than a new motor vehicle dealer’s bond. The bond amounts based on license type are listed below:
1. $100,000 Arizona Vehicle Dealer Bond
- New Motor Vehicle Dealer
- Used Motor Vehicle Dealer
- Public Consignment Auction Dealer
2. $25,000 Arizona Vehicle Dealer Bond
- Wholesale Auto Auction Dealer
- Wholesale Motor Vehicle Dealer
3. $20,000 Arizona Vehicle Dealer Bond
- Automotive Recycler
What will my Arizona Vehicle Dealer Bond cost?
Your Arizona Car Dealer Bond cost will depend primarily on the personal credit score of the business owner(s). Generally, surety bond premiums range from less than 0.6% of the surety bond amount to 2% for applicants with good credit. For example: A $100,000 dealer bond would cost between $600-$3,000.
Can you place my Bad Credit Arizona Vehicle Dealer Bond?
Yes, DBL Surety can place your car dealer bond if you have bad credit. However, the surety bond cost will increase as your credit score decreases. This means that you should expect to pay more if your credit score is 550 compared to an applicant with a credit score of 600 and so on. Individuals with bad credit should expect a premium of 4-8% of the dealer bond amount needed.
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