Every person or company selling vehicles in Arizona needs a dealer license. Applications go through the Arizona Department of Transportation online, with an ADOT Force account. Here is how it works.
At a glance
| Issued by | Arizona Department of Transportation (ADOT) |
|---|---|
| Surety bond | $100,000 new, used and public auction dealers; $25,000 brokers and wholesalers |
| Main fees | $15 filing, $100 license, $22 background check per person |
| Lease | At least six months, if you lease |
6 steps to your license
1. Choose the license category
ADOT issues nine types of license:
- New motor vehicle dealer: needs an authorization letter from the manufacturer
- Used motor vehicle dealer: used vehicles, with access to dealer-only auctions
- Wholesale motor vehicle dealer: sales to licensed dealers only
- Public consignment auction dealer: public vehicle auctions
- Wholesale motor vehicle auction dealer: auctions for registered dealers only
- Broker: an intermediary between dealers or manufacturers and the public, for a fee
- Automotive recycler: buys vehicles to recycle, dismantle or sell for parts
- Manufacturer and trailer manufacturer
2. Secure a business location
Buy the property or lease it for at least six months. It must be an enclosed building with room for at least two vehicles, used only for the business, and meet local zoning. The application includes photos showing that:
- A permanent sign with the business name can be read from 300 feet in daylight and says whether it is a dealership or a recycler
- A sign shows business hours that match the application
Wholesale dealers may work from a residence where zoning allows, and need an Arizona driver's license or ID.
3. Register the business
- Sole proprietors and partnerships register with the Arizona Secretary of State
- Corporations and LLCs register with the Arizona Corporation Commission and need a federal employer ID number
- Every business except manufacturers needs a Transaction Privilege Tax license from the Arizona Department of Revenue
4. Pass the background check
Owners and partners with 20% or more must have no fraud or auto-related felony convictions in the last 10 years and no other felony in the last 5. Submit an Authorization to Release Information, a Statement of Personal History and fingerprint cards; the check costs $22 per person.
5. Get a dealer bond
The amount depends on the license; the premium runs from 0.75% to 5% of it, depending on credit:
- New, used and public consignment auction dealers: $100,000
- Brokers, wholesale auction dealers and wholesale dealers: $25,000
- Automotive recyclers: $20,000
6. Apply online
File the application online with the required documents: Authorized Presence documentation for sole proprietors, the MVD Now Dealership Administrator application, the Statement of Personal History, and a letter of intent for new vehicle dealers. The fees:
- Filing fee: $15
- Dealer license: $100
- Criminal records check: $22 per person
- Each secondary business site: $50
- License plate: $30
Before you apply
Requirements, fees and bond amounts change. Confirm the current rules with ADOT before you file. This guide is general information, not legal advice; for questions about your situation, talk to a lawyer.
Licensed? Stock your lot at the Kendall FL Auto auction
Licensed dealers can register to bid at the Kendall FL Auto auction, check the run list of upcoming lots, or consign vehicles to the sale.