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How to get a used car dealer license in Arizona

You apply online through ADOT Force to the Motor Vehicle Division's Dealer Licensing unit for a used motor vehicle dealer license. The defining items are a $100,000 bond, fingerprints for every owner of 20% or more, a transaction privilege tax license and an inspected place of business with a permanent sign.

  • Sourced to ADOT MVD
  • Checked October 2026
  • Free
License
Used motor vehicle dealer license
Surety bond
$100,000
State fee
$115, or $415 with a lender
Pre-license course
Confirm with the agency
Background check
Fingerprints, owners of 20%+
License term
1 year, date set by ADOT
What the state asks for

Arizona dealer license requirements

The figures a first-time used car dealer needs before applying to ADOT MVD. Each row shows how well it is supported.

Surety bond
$100,000Official source

Set by ADOT rule for new, used and public consignment auction dealers. You file a separate original bond for each application and each county where you have a place of business. The surety must give 60 days notice to cancel.

State license fee
$115, or $415 with a lenderOfficial source

A $15 filing fee plus a $100 annual license fee. The license fee is $400 if the dealership has a contractual relationship with a third-party lender. ADOT emails one invoice that also covers any dealer plates.

Pre-license education
Confirm with ADOT MVDConfirm with the agency

State law lets ADOT set education and training for used dealer applicants. ADOT's public application pages do not list a required course, so ask the Dealer Licensing unit before you apply.

Background check
Fingerprints, owners of 20%+Official source

Each owner, partner or stockholder with 20% or more gives fingerprints and a personal history form (46-0407) for a state and federal records check. Fingerprint Clearance Cards are not accepted.

Insurance
Confirm with ADOT MVDConfirm with the agency

The dealer licensing statute lists the fees, a bond and a tax license with the application, and no insurance certificate. Ask ADOT whether it wants proof of insurance for your application or for dealer plates.

Business location
Lot allowed, 2 display spaces, signOfficial source

A used dealer may operate from a lot or part of a lot, but not a residence, tent or temporary stand. The site inspection checks for two display spaces, record-keeping space and a permanent sign legible from 300 feet.

License term and renewal
1 year, date set by ADOTOfficial source

You renew every year by the continuation date ADOT assigns. Renewal is $100, or $250 with a third-party lender relationship. Miss the date and a penalty equal to the fee is added.

Sales allowed without a license
Fewer than 7 in 12 monthsOfficial source

Arizona defines a used motor vehicle dealer as a person who sells, or offers to sell, seven or more used motor vehicles in a continuous 12-month period.

Processing time
20 days after records checkOfficial source

ADOT does not publish a total turnaround. By law it must approve or deny the application within 20 days after the criminal records check is finished, so the fingerprint step drives the schedule.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Arizona Department of Transportation, Motor Vehicle Division, Dealer Licensing Unit

License you apply for

Used motor vehicle dealer license

Official licensing page

Confirm the bond amount before you buy

ADOT's rule R17-5-402 sets the used dealer bond at $100,000. A proposed expedited rulemaking that touches that rule appeared in the Arizona Administrative Register in 2026, so confirm the amount with the Dealer Licensing unit (mvdlu@azdot.gov) before you order. ADOT's dealer help pages were updated on September 30, 2026, and older guides that describe paper applications no longer match the ADOT Force process.
Step by step

How to get a Arizona dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Set up the business and get a TPT license

    Form the entity or register the trade name and get an EIN. Then get your Arizona transaction privilege tax (TPT) license, because a copy of the current TPT license has to accompany the dealer application and every renewal.

    A.R.S. 28-4362

  2. Qualify the location and put up the sign

    Check local zoning first. A used dealer may operate from a lot or part of a lot, but not from a residence, tent or temporary stand. Mark out at least two display spaces and a place to keep records. Install a permanent sign at the entrance that shows the type of dealer and can be read from 300 feet in daylight. A lease must run at least six months.

    A.R.S. 28-4301 and 28-4406

  3. Get the $100,000 dealer bond

    Use ADOT's Vehicle Dealer Bond, form 38-1301. The business name and place of business must match your application, and the form calls for wet signatures. ADOT's rule requires a separate original bond for each county where you have a place of business, with the bond company's seal, and does not allow a handwritten bond.

    Form 38-1301

  4. Do the fingerprints and personal history form

    Every owner, partner or stockholder with 20% or more completes the Statement of Personal History, form 46-0407, and gets fingerprinted through the Department of Public Safety ($22.44) or Fieldprint (fees vary). Fingerprint Clearance Cards are not accepted. ADOT recommends finishing the check before you submit the application.

    Form 46-0407

  5. Sign up for ADOT Force and submit the application

    New applicants create an ADOT Force login and file the dealer application electronically with the Dealer Licensing unit. The application names each owner, the place of business and your business hours. You can pre-order dealer plates at the same time.

    ADOT Force

  6. Pass the investigation and site inspection

    ADOT investigates the application and inspects the place you plan to do business. The inspector fills in the Dealer Site Inspection Report, form 46-0412, which covers the display spaces, record-keeping space, photos of the site and the sign. ADOT must approve or deny the application within 20 days after the records check is complete.

    Form 46-0412

  7. Pay the invoice and display the license

    Once the application is accepted and the records check is done, ADOT emails an invoice for the license fee and any dealer plates. You pay it by funding your AZ MVD Now organization account. Expect $115 in state fees, or $415 if you have a third-party lender relationship. Display the license at your place of business.

    $15 filing fee + $100 license fee

Practical advice

Settle your exact legal name and place of business before you order the bond, because the bond must match the application and each county needs its own. Start fingerprints early, since ADOT's 20-day decision clock only starts when the records check is finished. Arizona lets a used dealer work from a lot, but a mailbox or home address will not pass as an established place of business.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Arizona dealer location requirements

What the state checks at the business address.

  • An established place of business. For a used dealer it may be a lot or part of a lot and does not have to be a permanent building.
  • A residence, tent, temporary stand or temporary quarters does not qualify.
  • The site inspection checks that at least two spaces are designated to display vehicles and that there is space for record keeping.
  • A permanent sign at the entrance that shows the type of dealer and is legible from at least 300 feet in daylight.
  • A banner is not a permanent sign. A sign painted on a window or storefront is acceptable if it meets the legal requirements.
  • If you lease the property, the lease you submit must run for at least six months.
  • ADOT inspects the proposed place of business, in person or by another method it chooses, before it decides on the license.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Arizona dealer license

Renewal and ongoing duties

Renew every year by the continuation date ADOT assigns, with proof of your current TPT license. A late renewal adds a penalty equal to the fee. Get ADOT's consent before you move, and file a Dealer Record Amendment with a bond rider for a name or location change. Tell ADOT within 30 days if you add an owner of 20% or more, and when your business hours change.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Arizona dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Arizona?

Get a transaction privilege tax license, set up an established place of business with a permanent sign, and buy a $100,000 dealer bond. Every owner of 20% or more completes fingerprints and a personal history form. Then file the application electronically in ADOT Force, pass ADOT's investigation and site inspection, and pay the emailed invoice through AZ MVD Now.

How much is the dealer bond in Arizona?

$100,000 for a used motor vehicle dealer. Arizona law caps dealer bonds at $100,000 and lets ADOT set the amount by rule, and the rule puts new, used and public consignment auction dealers at $100,000. Wholesale dealers and brokers post $25,000. You need a separate original bond for each county where you have a place of business.

How much does an Arizona dealer license cost?

State fees at first filing are a $15 filing fee plus a $100 annual license fee. The license fee is $400 if the dealership has a contractual relationship with a third-party lender. Fingerprint processing through the Department of Public Safety is $22.44 per person. Dealer plates are added to the same ADOT invoice. Renewal is $100 a year, or $250 with a lender relationship.

Do I need a pre-licensing course in Arizona?

ADOT's public application pages do not list a required course. Arizona law does allow ADOT to set education and training for people applying for a used or wholesale dealer license and to contract it out to a private provider that may charge a fee. Confirm with the Dealer Licensing unit before you apply.

Can I get an Arizona dealer license without a car lot?

Not as a retail used dealer. You need an established place of business, though for a used dealer it can be a lot or part of a lot instead of a building. A residence, tent or temporary stand does not qualify, and the site inspection checks for at least two designated display spaces. Wholesale dealers and brokers are not required to have an established place of business, but a wholesale dealer may sell only to licensed dealers.

How many cars can I sell in Arizona without a dealer license?

Up to six. Arizona defines a used motor vehicle dealer as a person who buys, sells, exchanges or offers to sell seven or more used motor vehicles in a continuous 12-month period, and anyone who meets that definition needs a license.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with ADOT MVD or your attorney before you sign a lease or pay a fee.

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