To apply, you must:
8 Arizona Dealer License Requirements
Every Arizona Dealer License is issued by the Arizona Department of Transportation's Motor Vehicle Division, through its Dealer Licensing Unit. This page covers Arizona's 7 Dealer License types, their requirements, bond amounts, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you'll use it through the entire Dealer License process. It goes on the bond, the tax license, and the application itself.
Arizona's Dealer application accepts 5 business types: a sole proprietorship, a partnership, an LLP, a corporation, or an LLC. A sole proprietor's business name must be a registered trade name with the Arizona Corporation Commission. A corporation, LLC, or LLP files its Articles there instead.
An LLC keeps your business separate from your personal life and adds trust to the name. Settle who owns what before you file, because every owner of 20% or more is fingerprinted for the background check.
Choose your Dealer License Type
Most people start with Wholesale because you can run your business from home. Used is the retail license; selling 7 or more used vehicles in 12 months is what requires it (A.R.S. §28-4301).
| License Type | What It Lets You Do |
|---|---|
| Wholesale Motor Vehicle DealerHome-based, Dealers only | Sell only to other licensed Dealers and at dealer auctions, from a home office. You must be a legal resident of Arizona and title each vehicle in your own name before you transfer it. Advertising or selling retail costs $1,000 to $3,000 per sale or offer, plus loss of the license |
| Used Motor Vehicle DealerRetail | Sell used vehicles retail, wholesale, and on consignment. Requires an established place of business, which by statute is never a residence |
| New Motor Vehicle DealerFranchise | Sell new and used vehicles retail, wholesale, and on consignment. Franchise dealers skip the criminal records check |
| Public Consignment Auction Dealer | Consignment sales only, at a live auction with a licensed auctioneer calling bids. Every sale is reported to ADOT and the Department of Revenue within 15 days |
| Wholesale Motor Vehicle Auction Dealer | Run a clearing house for wholesale sales between licensed Dealers |
| Broker | Find a specific vehicle for a customer, for a fee. A Broker cannot own the vehicles sold, take consignments, or use a location zoned residential |
| Automotive Recycler | Buy vehicles to dismantle and sell the parts and accessories. Arizona sets no vehicle count for this category |
| Manufacturer or DistributorNot a Dealer License | Franchises Dealers to sell its product. Cannot sell direct to consumers |
Get your Dealer Bond (Surety Bond)
An Arizona Dealer License requires a surety bond of $20,000 to $100,000, depending on the license type (A.A.C. R17-5-402). A bond is a guarantee that a customer can be paid if you break a dealer law; the state can claim against it. A Wholesale Dealer's $25,000 bond starts at $175 a year. An Automotive Recycler license requires a $20,000 bond.
You file the bond with the MVD director on ADOT's own form, and it must be:
- one original per application, plus one for each county where you have an established place of business
- issued by a surety company authorized to do business in Arizona
- cancellable only on 60 days' notice to the director
| License Type | You Pay | Bond Amount |
|---|---|---|
| Wholesale Motor Vehicle Dealer | From $175/yearcredit check required | $25,000 |
| Used Motor Vehicle Dealer | From $700/yearcredit check required | $100,000 |
| New Motor Vehicle DealerFranchise | From $700/yearcredit check required | $100,000 |
| Public Consignment Auction Dealer | From $1,000/yearcredit check required | $100,000 |
| Wholesale Motor Vehicle Auction Dealer | From $175/yearcredit check required | $25,000 |
| BrokerArizona - Motor Vehicle Broker ($25,000) | From $250/yearcredit check required | $25,000 |
Set up your Dealer Office
An Arizona Wholesale Motor Vehicle Dealer can run their business from home. By statute, a wholesale dealer “is not required to operate from an established place of business.” It only has to “maintain a place of business in which records of the business are kept.”
Every other type except Broker requires an established place of business. For a Used dealer that “does not mean or include a residence, tent, temporary stand or temporary quarters” (A.R.S. §28-4301). Arizona sets no minimum lot size, parking count, or square footage. The table below compares the two.
| Wholesale | Used | |
|---|---|---|
| Location | Your home, or any place where your records are kept. ADOT's checklist expects “the residence/office” | An established place of business. Never a residence, tent, temporary stand, or temporary quarters |
| Residency | You must be a legal resident of Arizona | The business must be in Arizona |
| Sign | A permanent sign identifying the business | A permanent sign at the entrance, legible from 300 feet in daylight. Not a banner, with days and hours posted |
| Lease or deed | No minimum term on the checklist | A lease or deed running at least 6 months |
| You submit | Photos of the address numbers on the residence or office, the office area, a secure file cabinet, and the sign. All four sides of the building only if it isn't a residence | Photos of all four sides of the building, the entire lot, the office area, a secure file cabinet, and the sign |
Pass the Background Check (Criminal Records Check)
An Arizona Dealer License requires a state and FBI criminal records check, by fingerprints, of every owner of 20% or more (A.R.S. §28-4361). That includes a sole owner and every partner; minority owners and employees under that line are not checked.
- You file Form 46-0407, the Statement of Personal History, with your SSN and two felony questions.
- The fee is nonrefundable and goes to the Department of Public Safety; the statute doesn't publish the amount.
- Bring a government photo ID, from any state, to the fingerprint appointment.
- New (franchise) dealers skip the check. For a renewal or a second license, anyone checked within the past 5 years skips it too.
The director may deny a license for:
- a fraud or auto-related felony in the 10 years before the records check is complete
- any other felony in the 5 years before the records check is complete
The clock runs from the records check, not the conviction date. Misdemeanors aren't asked about, and a sealed, expunged, or pardoned conviction can't be counted against you (A.R.S. §41-1093.04).
Submit your Dealer License Application
You apply online through ADOT Force, ADOT's dealer licensing portal, by uploading your documents. The state costs are $15 to file and $100 for the license. ADOT invoices them once it approves the application, and you pay through an AZ MVD Now account.
Two documents catch first-timers. Every application needs a copy of your current Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue. And every applicant files Form 96-0560 to prove lawful presence in the US, with any of 16 documents, or claims its exemption.
Arizona waives the $115 in fees for a first-time individual applicant who is:
- at or below 200% of the federal poverty guidelines, shown by last year's tax return
- the spouse of an active-duty military service member
- an honorably discharged veteran, within 2 years of discharge
Pass the Site Inspection
After you file, the director investigates the application and inspects your place of business, “physically or through an alternate method” (A.R.S. §28-4364). The Dealer Licensing Unit first reviews the digital application within 3 business days for anything missing.
The director then has 20 days after the criminal records check is complete to approve or deny. A denial comes in writing, with its grounds, and you can petition for a hearing within 30 days.
Get your Dealer License Plates
Arizona dealer license plates let you drive your inventory, and the count depends on your license type (A.R.S. §28-4533). Each plate is $30, or $10 for a motorcycle dealer, plus postage, and it renews every year with your license.
- Wholesale: 2 plates, plus 1 for every 50 vehicles sold the previous year, up to 10
- Used: 15 plates, plus 1 for every 50 vehicles sold
- New: up to 150 plates
A plate can be used for personal driving only when the vehicle is assigned full-time to a Dealer or a full-time employee. A written record of the assignment is required. Any vehicle on the road still falls under Arizona's ordinary liability insurance law.
A prospective buyer can drive on one for up to 48 hours, or 72 hours in an unladen pickup or truck. Dealer tags can't go on a sold, rented, or work vehicle; the civil penalty is up to $500.
Dealer License Cost
An Arizona Dealer License costs $115 in state fees to start, $15 to file plus $100 for the license, and $100 a year to renew. A contract with a third-party lender raises both license fees. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Application filing fee | $15 |
| Annual license fee | $100 a year$400 a year with a third-party lender contract |
| Renewal (continuation) | $100 a year$250 a year with a third-party lender contract |
| Provisional license filing | $10 |
| Branch license | $50 a year, filing or renewal |
| Dealer Bond | From $175 a year, Wholesale or Wholesale AuctionFrom $250 a year, BrokerFrom $700 a year, New or UsedFrom $1,000 a year, Public Consignment AuctionBy quote, Automotive Recycler |
| Fingerprint records check | Nonrefundable fee to the Department of Public Safety; the statute doesn't publish the amount |
| Dealer plates | $30 each, plus postage$10 each for a motorcycle dealer$5 replacement |
| Off-premises permitSelling temporarily away from your licensed location | $25 vehicle show or special event$25 display-and-sale permit |
| Dealer Record AmendmentForm 38-5118, filed within 30 days of a change | $10 business name or DBA change$10 location change within the same county |
| Fee waiverFirst-time individual applicants: low income, military spouse, or a veteran within 2 years of discharge | $115 waived: the $100 license fee and $15 filing fee |
| Late renewal, license or plates | A penalty equal to the fee |
| Civil penalties | $1,000 to $3,000 per sale or offer, selling retail on a Wholesale licenseUp to $500 for misusing a dealer plate |
Dealer License Renewal
An Arizona Dealer License is valid for 1 year and renews for $100, or $250 with a third-party lender contract, plus $50 per branch. You renew in the AZ MVD Now Dealer Suite with a copy of your current TPT license.
Common Questions
Can you get an Arizona Dealer License with a felony?
A felony isn't an automatic bar to an Arizona Dealer License: the director “may” deny, not “shall” deny. The grounds are a fraud or auto-related felony within 10 years, or any other felony within 5, from when the records check finishes. You can petition the agency first (A.R.S. §41-1093.04), and a sealed, expunged, or pardoned conviction can't count.
Can you get a Dealer License in Arizona without a lot?
Yes, on the Wholesale Motor Vehicle Dealer license. Arizona requires no established place of business for a wholesale dealer, only “a place of business in which records of the business are kept” (A.R.S. §28-4335). You must be a legal resident of Arizona. ADOT's own checklist expects a residence as one of the two normal locations.
How many cars can you sell in Arizona without a Dealer License?
Arizona requires a Used Motor Vehicle Dealer License once you sell 7 or more used vehicles in any continuous 12-month period (A.R.S. §28-4301). Selling your own personal vehicles is exempt.
Does Arizona require a dealer course or exam?
No. Arizona requires no pre-license class and no exam for any Dealer License type. The statute only says the director “may establish education and training” for used and wholesale applicants (A.R.S. §28-4361(F)). No rule has ever done so. Some training companies advertise a required Arizona course; there isn't one.
How long does it take to get a dealer license in Arizona?
No Arizona law sets a total time. The one legal clock: the director must approve or deny within 20 days after the criminal records check is complete (A.R.S. §28-4365). ADOT reviews a new application within 3 business days for missing items. A provisional license can let you operate while the records check is pending.
Do I have to live in Arizona to get a Dealer License?
Only for 2 of the 7 license types. A Wholesale Motor Vehicle Dealer or a Broker “is required to be a legal resident of this state” (A.R.S. §28-4335). Every other type needs an Arizona business location, not Arizona residency. The lawful-presence form even exempts a licensee from another state.
Do I need a business bank account?
No. Nothing in Arizona's dealer statute or on the ADOT Force document checklist requires a business bank account. The checklist's only mention of a bank is for Dealers who finance sales through a third-party lender. They file a Certificate of Contract with that lender, which also raises the license fee to $400.
Support
Call the Dealer Licensing Unit for anything on this page. The AZ MVD Now Dealer Suite has its own technical support line.
| Contact | Detail |
|---|---|
| Department | Arizona Department of Transportation, Motor Vehicle Division, Dealer Licensing Unit |
| Phone | (602) 712-7571, option 7 Dealer Licensing1-888-488-1120 AZ MVD Now Dealer Suite support |
| Address | Motor Vehicle Division, Mail Drop 552-MPO Box 2100Phoenix, AZ 85001-2100 |
Additional sources (12)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- A.R.S. Title 28, Chapter 10 — Arizona's dealer licensing law: license types, the bond, the fingerprint check, plates, and the grounds a license can be denied
- A.R.S. §28-4301, definitions — the 7-vehicle rule and what an “established place of business” does and doesn't include
- A.R.S. §28-4302, fees — the $15 filing fee, the $100 and $400 license fees, the $100 and $250 renewal fees, and the $50 branch fee
- A.R.S. §28-4361, the application — what the application contains, who is fingerprinted, and who is exempt
- A.R.S. §28-4365, denial grounds — the felony windows and the 20-day decision clock
- A.R.S. §28-4366, hearing and appeal — the 30-day hearing petition and the appeal to Maricopa County Superior Court
- A.R.S. §28-4405, license continuation — the annual renewal, the TPT license copy, and the late penalty
- A.R.S. §28-4406, signs — the permanent sign legible from 300 feet
- A.A.C. Title 17, Chapter 5, Article 4 (RTF) — ADOT's dealer rules; R17-5-402 sets the bond amount for each license type
- ADOT Dealer Policy Manual §2.2.1 — the application requirements, naming LLCs and LLPs as accepted entities, and the fee-waiver proof
- Dealer Record Amendment, Form 38-5118 (PDF) — the 30-day notice when a name, location, officer, partner, or stockholder changes, and the $10 fees
- ADOT Dealer Education and News — memos and news for licensed Dealers, not a required course
