Motor Vehicle Dealer Bond in Arizona

What this bond requires in Arizona

Arizona dealer bond is filed on ADOT form 38-1301 and protects any person who suffers loss from the dealer nonpayment of motor vehicle fees or failure to deliver a valid certificate of title (A.R.S. § 28-4362). The bond must be executed by a surety company authorized to do business in Arizona, names the applicant as principal and the State of Arizona as obligee, and is cancellable only on at least 60 days prior notice to the ADOT Director. Automotive recyclers are statutorily set at a minimum of $20,000; all other dealer license classes are set by the Director up to a maximum of $100,000.

Who requires it

The motor vehicle dealer bond is required by the Arizona Department of Transportation, Motor Vehicle Division (ADOT MVD) - Dealer Licensing Unit under A.R.S. § 28-4362 (bond requirement); see also § 28-4361 (application) and § 28-4302 (license fees).

How to file in Arizona

Applicants apply to the ADOT MVD Dealer Licensing Unit under A.R.S. § 28-4361 by submitting a completed Motor Vehicle Dealer License application along with the annual license fees prescribed by § 28-4302, the original executed Vehicle Dealer Bond (ADOT form 38-1301) in the amount prescribed by the Director for the license class, proof of established place of business, and other supporting documents. The original bond is filed with ADOT MVD; the bond becomes effective on its date of execution and remains in force until cancelled with 60 days prior written notice to the Director.

Official filing form →

Get a real motor vehicle dealer bond quote for Arizona

Your bond type and state will be pre-filled. No upsell, no pressure.

FAQ

Common questions

Is a motor vehicle dealer bond required in Arizona?

Yes. Arizona requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $20,000 to $100,000.

How much is the bond in Arizona?

The bond amount is $20,000 to $100,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Arizona Department of Transportation, Motor Vehicle Division (ADOT MVD) - Dealer Licensing Unit.

How is the bond filed?

Applicants apply to the ADOT MVD Dealer Licensing Unit under A.R.S. § 28-4361 by submitting a completed Motor Vehicle Dealer License application along with the annual license fees prescribed by § 28-4302, the original executed Vehicle Dealer Bond (ADOT form 38-1301) in the amount prescribed by the Director for the license class, proof of established place of business, and other supporting documents. The original bond is filed with ADOT MVD; the bond becomes effective on its date of execution and remains in force until cancelled with 60 days prior written notice to the Director.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.