How to get a used car dealer license in Arizona
A practical walkthrough of the Used Motor Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of June 2026.
Getting a Used Motor Vehicle Dealer used-car dealer license in Arizona:
- Surety bond required
- $100,000 (retail) / $25,000 (wholesale-only)
- Application fee
- $15 filing + $100 license
- License term
- Annual
- Typical timeline
- 4 – 8 weeks
- Typical first-year cost
- $1,200 – $3,500
This guide is informational and does not replace official Arizona requirements. Always verify with the Arizona DOT Motor Vehicle Division (MVD) before applying.
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Who can apply for a Used Motor Vehicle Dealer license
Arizona requires a Used Motor Vehicle Dealer license for anyone who buys, sells, or exchanges seven or more used vehicles in a 12-month period. It's issued by the Arizona Department of Transportation Motor Vehicle Division (MVD).
In Arizona this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Used Motor Vehicle Dealer authority to sell used vehicles.
- An established place of business in Arizona zoned for vehicle sales, with an office, lot, and sign
- A $100,000 surety bond for retail used dealers (or $25,000 if you sell only to licensed dealers, wholesale-only)
- An Arizona Transaction Privilege Tax (TPT) license
- A criminal background check and fingerprint card for the applicant and any owner of 20% or more
- A registered Arizona business entity
- A passing inspection of the dealership location
Step-by-step process
- 1
Secure a compliant location
Get an Arizona location zoned for vehicle sales with an office, display lot, and signage. The MVD inspects the site before licensing.
- 2
Register your business and get a TPT license
Form your Arizona business entity and obtain a Transaction Privilege Tax (TPT) license so you can collect and remit the applicable tax on sales. You'll include a copy with the application.
- 3
Post your surety bond
Buy a $100,000 surety bond for a retail used dealer, or a $25,000 bond if you'll sell only to licensed dealers (wholesale-only). You pay an annual premium, not the full amount.
- 4
Complete background checks and the application
Submit a personal history form and fingerprint card for the applicant and any owner of 20% or more so the MVD can run a criminal records check. File the application with the $15 filing fee, the $100 license fee, your bond, and your TPT license.
- 5
Pass the location inspection
The MVD inspects your dealership to confirm the office, lot, and signage meet requirements. Have everything operational before the inspector arrives.
- 6
Receive your license and dealer plates
Once approved, you're a licensed Arizona used motor vehicle dealer and can obtain dealer plates to operate, buy at auction, and retail used vehicles.
Arizona dealer license cost — fees breakdown
| Item | Amount |
|---|---|
Filing fee | $15 |
License fee | $100 |
Criminal records check For applicant and owners of 20%+. | $22 per person |
Surety bond premium (annual) Premium on the $100,000 retail bond, by credit. | $1,000 – $3,000 |
Dealer plates Obtained after licensing. | Varies |
TPT license + business registration AZ entity filing + Transaction Privilege Tax license. | Varies |
Surety bond requirement
Arizona requires every used-vehicle dealer to post a $100,000 (or $25,000) surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-5%of the bond's face value. Your actual premium depends on personal credit and business history.
Arizona requires a $100,000 surety bond for a retail used motor vehicle dealer (someone selling seven or more used vehicles a year to the public), or a $25,000 bond for a wholesale-only dealer who sells exclusively to other licensed dealers. You pay an annual premium (not the full bond), based on your credit.
Renewal
Arizona used motor vehicle dealer licenses renew annually. Keep your surety bond and TPT license current and your location compliant. The MVD sends renewal information; renew before expiration to keep operating.
Common questions
When do I need an Arizona dealer license?+
Arizona requires a Used Motor Vehicle Dealer license for anyone who buys, sells, auctions, or exchanges seven or more used vehicles in a continuous 12-month period. Below that threshold you may not need a dealer license, but selling at volume without one is illegal.
Why is the Arizona dealer bond $100,000?+
Arizona sets one of the highest dealer-bond amounts in the country — $100,000 for a retail used dealer. If you sell used vehicles only to other licensed dealers (wholesale-only), the bond drops to $25,000. You pay an annual premium, not the full bond.
What is a TPT license and do I need one?+
A Transaction Privilege Tax (TPT) license is Arizona's version of a sales-tax license. Used motor vehicle dealers must hold one and include a copy with the dealer application so they can collect and remit the tax on sales.
Who needs a background check for an Arizona dealership?+
The applicant and any owner of 20% or more of the business must submit a personal history form and fingerprint card so the MVD can run a criminal records check (about $22 per person).
How long does it take to get licensed in Arizona?+
Most applicants are licensed in about 4 to 8 weeks once the location is ready, the bond and TPT license are in place, and the background checks clear. Scheduling and passing the MVD inspection is usually the longest step.
How much does a Arizona dealer license cost?+
Plan for about $1,200 – $3,500 in the first year. That covers the $15 filing + $100 license application fee and the $100,000 (retail) / $25,000 (wholesale-only) surety bond — you pay an annual premium of roughly 1-5% of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in Arizona?+
Dealer plates are separate from the license itself. Once your Used Motor Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
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