Getting a used car dealer license in Arizona

In Arizona, used-car dealers are licensed by Arizona Department of Transportation, Motor Vehicle Division.

Before your first retail sale you’ll need a $100,000 surety bond and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

At a glance

License
Used motor vehicle dealer apps.azdot.gov (source, opens in a new tab)
Issued by
Arizona Department of Transportation, Motor Vehicle Division apps.azdot.gov (source, opens in a new tab)
Surety bond
$100,000 used retail dealer surety bond. apps.azdot.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Official fees
$100 license + $15 application; dealer plate $30 + postage; DPS background charge $22.44 + fingerprint vendor fee. Additional lender authority costs apply only if needed. apps.azdot.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used retail license

    Arizona's used motor vehicle dealer license comes from ADOT's Motor Vehicle Division. Wholesale, broker, consignment-auction and new-car dealers hold different licenses, and the residential exception for wholesalers doesn't apply to used retail. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab) apps.azdot.gov › 0-Applying_LandingPg.htm (source, opens in a new tab)

  2. Set up the business and get your TPT license

    Form the business entity and get your transaction privilege tax (TPT) license. You need the issued license, not the application receipt. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

  3. Find a commercial location

    Used retail needs commercially zoned premises. You need an office with secure records and posted hours, and a lease of at least six months or a deed. Add a permanently attached sign readable from 300 feet in daylight; a banner isn't enough. You'll photograph all of it for the application. apps.azdot.gov › 0-Applying_LandingPg.htm (source, opens in a new tab) apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

  4. Get the $100,000 bond

    Used retail dealers need a $100,000 surety bond on ADOT form 38-1301. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab) apps.azdot.gov › 0-Applying_LandingPg.htm (source, opens in a new tab)

  5. Complete the background paperwork

    Qualifying principals submit personal history (form 46-0407) and go through the dealer fingerprint process, not an ordinary fingerprint clearance card. Name a dealership administrator on form 15-0707. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

  6. Apply in ADOT Force

    Submit the dealer application with photos of the building and sign, then pay through AZ MVD Now: $100 for the license plus a $15 application fee. A dealer plate is $30 plus postage, and the DPS background check is $22.44 plus the fingerprint vendor's fee. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

The location

Display lot
Commercial premises/photos required. apps.azdot.gov (source, opens in a new tab)
Office
Office, secure records and posted-hours photos; lease at least six months or deed. apps.azdot.gov (source, opens in a new tab)
Sign
Permanently affixed sign readable 300 ft in daylight; banner insufficient. apps.azdot.gov (source, opens in a new tab)
Zoning and home-based lots
Commercial zoning required for used retail; wholesale residential exception does not apply. apps.azdot.gov (source, opens in a new tab)

Before you apply

Entity filings, actual TPT license, owner information, fingerprint/personal-history review for qualifying principals, bond and lease. apps.azdot.gov (source, opens in a new tab)

Forms

15-0707 Dealership Administrator; 38-1301 bond; 46-0407 personal history; 96-0560 authorized presence if applicable. Form links are on the used-dealer application page. apps.azdot.gov (source, opens in a new tab)

Get the current versions from apps.azdot.gov; we don’t host copies.

Not the license you’re after?

Wholesale, broker, public-consignment auction and new/franchise licenses differ; residential wholesale exception does not cover used retail. apps.azdot.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: meeting commercial-premises rules and qualifying for a $100,000 bond.

Easy mistakes:

Questions

How much does an Arizona dealer license cost?

$100 for the license and $15 for the application, $30 per dealer plate plus postage, and $22.44 for the DPS background check plus the fingerprint vendor's fee. The premium on the $100,000 bond and the location cost more. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

Can I sell used cars from home in Arizona?

Not at retail. Used retail requires commercial zoning, and the residential exception for wholesalers doesn't apply. apps.azdot.gov › 0-Applying_LandingPg.htm (source, opens in a new tab) apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

What does the sign need to be?

Permanently attached and readable from 300 feet in daylight. A banner isn't enough. apps.azdot.gov › 2-Applying_Used_MV_Dealer.htm (source, opens in a new tab)

Sources

Not affiliated with the Arizona MVD. Not legal advice. Requirements change; always confirm with the state.