Motor Vehicle Dealers - New or New and Used Vehicles
Motor vehicle dealers in Arizona must obtain this surety bond for licensing to sell new or new and used vehicles, with amounts ranging from $20,000 to $100,000.
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About This Bond
The State of Arizona Motor Vehicle Dealer License Surety Bond is a financial guarantee required for businesses seeking to obtain or maintain a motor vehicle dealer license in Arizona. This bond ensures that licensed dealers comply with state regulations governing the sale of new vehicles or both new and used vehicles.
Motor vehicle dealerships operating in Arizona are required to secure this bond as part of their licensing requirements. The bond amount varies based on the dealer's business volume and type, with coverage levels of $20,000, $25,000, or $100,000. Dealers must maintain continuous coverage to keep their license active.
This surety bond protects the State of Arizona and consumers from financial losses resulting from a dealer's violation of state motor vehicle laws, fraudulent practices, or failure to fulfill contractual obligations. If a dealer fails to comply with licensing requirements or engages in prohibited activities, affected parties can file claims against the bond for compensation.
The bond term is one year and must be renewed annually to maintain an active dealer license. Bond premiums are typically based on the required coverage amount and the applicant's creditworthiness and business experience.
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At a glance
Arizona Auto Dealer Bond Key Facts
Governed by Ariz. Rev. Stat. § 28-2057.
The basics
What Is an Auto Dealer Bond in Arizona?
A bonded title in Arizona is a regular vehicle title the Motor Vehicle Division (MVD) issues on the strength of a surety bond. You use it when there is not enough documentation to satisfy a claim of ownership — for example, the title is lost and the seller cannot provide one. Arizona requires the bond under Arizona Revised Statutes section 28-2057.
Good to know - There is no minimum vehicle value to require a bond. The bonded title is the standard path when there is not enough documentation to satisfy a claim of ownership.
The bond protects any prior owner, lienholder, or later purchaser of the vehicle if someone else turns out to have a claim on it. You file it as part of your title application — it does not replace the application.
Arizona sets the bond at one and one-half times (1.5x) the value of the vehicle, as determined by the MVD, and the bond stays in effect for three years. If no one makes a valid claim during that time, the bond ends and you keep a clear title.
The process starts with a vehicle inspection at an MVD or Authorized Third Party office. Because the exact steps depend on your situation, the MVD gives you a list of the specific actions and documents you need at the time of that inspection.
Qualification
What You Need to Qualify for a Arizona Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You cannot provide the normal proof of ownership for the vehicle (for example, the title is lost or the seller could not give you a properly assigned title).
- The vehicle is in your possession and can be presented for an MVD vehicle inspection.
- You can complete the applicant affidavit and notify any known prior owner and lienholder as the MVD requires.
- The bond is issued by a surety company authorized to do business in Arizona.
Step by step
How to Get an Auto Dealer Bond in Arizona: Step by Step
Get a vehicle inspection
Visit any MVD or Authorized Third Party office for a vehicle inspection. At the inspection, the MVD reviews your situation and gives you a list of the specific actions and documents you need to finish the bonded-title process.
Complete the bonded title application
Fill out the Bond Title Application - Vehicle (Form 40-1001). This packet includes the applicant affidavit and the notice to any prior owner and lienholder that Arizona requires before a bonded title is issued.
Bond Title Application - Vehicle (40-1001)Determine your bond amount
The bond must equal one and one-half times (1.5x) the vehicle's value, as determined by the MVD. Use the value the MVD assigns at your inspection, then enter it in the calculator above to estimate your premium.
Buy your surety bond
Purchase a surety bond from a company authorized in Arizona for the amount the MVD requires (1.5x the vehicle value). Once issued, the bond stays in effect for three years.
File your title and registration application
Submit the surety bond with the Title and Registration Application (Form 96-0236) and the rest of your documents, and pay the state fees. The $4 title fee and standard registration fees are separate from the bond premium.
Title and Registration Application (96-0236)Paperwork
Arizona Dealer Bond Forms & Documents
The Arizona bonded-title application, including the applicant affidavit and owner/lienholder notification.
View formThe main Arizona title/registration application, filed with the surety bond.
View formThe surety bond itself, purchased from an authorized surety company for 1.5x the MVD-determined value. There is no MVD form number for the bond.
You'll also need
Cost
How Arizona Auto Dealer Bond Pricing Works
You do not pay the full bond amount. In Arizona, the surety bond must equal one and one-half times (1.5x) the value of the vehicle as determined by the MVD. You pay a premium, which is a smaller percentage of that bond amount.
Your premium depends on the bond amount and underwriting. Use the calculator above for an estimate; your final premium may vary. The $4 title fee and standard registration fees are separate from the bond premium.
Worked example
If the MVD values your vehicle at $8,000, the bond amount is 1.5x that, or $12,000. You pay only the premium on the $12,000 bond, not the full $12,000.
Filing
Filing Information
Arizona Department of Transportation, Motor Vehicle Division (MVD)
We prepare the issued bond and send you a copy for your records. Filing requirements vary by state, license type, carrier, and bond form.
602-255-0072FAQ
Arizona Auto Dealer Bond FAQ
Yes. When there is not enough documentation to satisfy a claim of ownership, the Arizona MVD requires a surety bond as a condition of issuing the certificate of title, under Arizona Revised Statutes section 28-2057.
The bond amount is one and one-half times (1.5x) the value of the vehicle as determined by the MVD. You pay a premium — a percentage of that amount — not the full bond amount. Use the calculator above to estimate it.
The MVD determines the value. You complete a vehicle inspection at an MVD or Authorized Third Party office, and the MVD provides the value and the documentation you need at that time.
Three years. Under Arizona Revised Statutes section 28-2057, the bond is returned at the end of three years, or sooner if the vehicle is no longer registered in Arizona and the valid certificate of title is surrendered to the department.
Start with a vehicle inspection at any MVD or Authorized Third Party office. The MVD then gives you a list of the specific steps and documents for your situation, which include the Bond Title Application (Form 40-1001) and buying the surety bond.
The bond protects any prior owner, lienholder, or later purchaser of the vehicle, and anyone who acquires a security interest in it, against loss from the title being issued to you. An interested person can recover on the bond for any breach of its condition.
A $4 certificate of title fee applies, plus standard registration fees (an $8 registration fee, a $1.50 Air Quality Research fee, and the vehicle license tax). These state fees are separate from the surety bond premium.
Sources
Last verified 2026-06-23. Requirements change - confirm current details with Arizona Department of Transportation, Motor Vehicle Division (MVD) before you file. This page is informational and not legal advice.
FAQ
Arizona Auto Dealer Bond Questions
The cost of a Arizona auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Arizona auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Arizona license instructions.
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AutoDealersBond.com is operated by Insurance Services by Shield, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Insurance Services by Shield is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
