Dealer Services and Licensing

Motor Vehicle Dealer Licensing

Dealer License Types

Basis Guidelines for Motor Vehicle Dealers License Types

Thank you for your interest in becoming an Arizona licensed motor vehicle dealer.

The type of dealer license you apply for is impacted by Arizona Revised Statute specific to the license type.

License Types and Definitions

New Dealer

As a New retail dealer, you can sell new, used, wholesale and vehicles on consignment.

  • Submit a copy of the franchise authorization letter from the manufacturer for the make of the franchised vehicle you are selling.
  • You are required to operate from your an licensed established place of business, as outlined in ARS § 28-4301.8.
  • Submit a $100,00 Surety Bond
  • Erect a permanently affixed sign that states your business name and indicates the type of business you are conducting that is legible from 300’ in daylight hours
  • Have a minimum of 2 designated spaces to display vehicles for sale

Used Dealer

You may sell used wholesale and consignment vehicles.

  • You are required to operate from an established place of business, as outlined in ARS § 28-4301.8
  • Submit a $100,000 Surety Bond
  • Have a minimum of 2 designated spaces to display vehicles for sale
  • Have a permanently affixed business sign that is legible from 300’ in daylight hours, that states your business name and indicates the type of business being conducted from the location

Public Consignment Auction Dealer

You can sell retail ON consignment ONLY and ONLY conduct live auto auctions with a licensed auctioneer verbally calling for and accepting bids and provide live auction services to the public on a consignment contract basis.

  • Operate from an established place of business.
  • You never take title, buy or sell a vehicle
  • You may not buy from a wholesale dealer or the public.
  • Submit a $100,00 Surety Bond
  • Post a sign that states “Implied Warranty not required”
  • Post a sign that states “Emissions not required”

Wholesale Dealer

You can sell vehicles ONLY to other licensed dealers. You may not sell to the general public.

  • You may not advertise or give the appearance of selling or offering to sell retail.
    • Non-compliance may result in civil penalties of $1,000 ‐ $3,000 per sale or offer to sell and loss of license.
  • You must title all vehicles in name of wholesale license before transferring title.
  • You may operate from your residence as your licensed principle place of business.
  • All owners must be a resident of the state of Arizona
  • You must post a permanently affixed business sign that states your business name and that you are a “wholesale motor vehicle dealer.  NOTE: There is no size requirement
  • Submit a $25,000 Surety Bond

Wholesale Auction Dealer

You can act as a clearing house for dealer-to-dealer vehicle sales only.

  • Solely in wholesale transactions to licensed motor vehicle dealers
  • You do not buy, sell or own the vehicles auctioned in the ordinary course of business.
  • Submit a $25,000 Surety Bond
  • Your business sign must be permanently affixed and be legible from 300’ in daylight hours that states your business name and indicates that you are a Wholesale Auction Dealer
  • Your business location must be commercial-zoned and most be devoted principally to that of a dealership per the Established Place of Business definition.

Broker

A Broker acts as a locator service, for a fee, to find a specific vehicle for a customer and provide a service of arranging or assisting in effecting the purchase of a specific motor vehicle.

  • You may not advertise for sale or exchange any specific motor vehicle OR
  • be an employee or agent of a new, used, auctioneer, manufacturer or a wholesale dealer.

Manufacturer

As a licensed Manufacturer, you can franchise an Arizona licensed motor vehicle dealer to sell your product/Make; you may not sell directly to a consumer. 

Distributor

You can franchise licensed Arizona dealers to sell your product/Make; you may not sell vehicles directly to the consumer.

Automotive Recycler

An Automotive Recycler may purchase vehicles for the purpose of dismantling and selling the parts and accessories only.

  • Submit a $20,000 Surety Bond
  • Sign must be permanently affixed, legible from 300’ in daylight hours, state your business name and indicate an automotive recycler is being conducted from the property
  • Must have an enclosed yard for inventory

 

Questions

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Civil Rights

Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADOT does not discriminate on the basis of race, color, national origin, sex, age, or disability. Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Civil Rights Office at civilrightsoffice@azdot.gov. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

De acuerdo con el Título VI de la Ley de Derechos Civiles de 1964, la Ley de Estadounidenses con Discapacidades (ADA por sus siglas en inglés) y otras normas y leyes antidiscriminatorias, el Departamento de Transporte de Arizona (ADOT) no discrimina por motivos de raza, color, origen nacional, sexo, edad o discapacidad. Las personas que requieran asistencia (dentro de lo razonable) ya sea por el idioma o discapacidad deben ponerse en contacto con la Oficina de Derechos Civiles de ADOT en civilrightsoffice@azdot.gov. Las solicitudes deben hacerse lo más antes posible para asegurar que el Estado tenga la oportunidad de hacer los arreglos necesarios.