Dealer Licensing Frequently Asked Questions

Motor Vehicle Dealer License

If there is a change in the license type (wholesale to used, used to new, etc.), do I need a new license?

Yes and you will be issued a new dealer license upon approval.  Dealer plates are license specific and will not transfer. 

If the entity changes (Inc to LLC, Individual to Partnership, Inc to new Inc, etc.) do I need a new license?

Yes and you will be issued a new dealer license upon approval.  Dealer plates are license specific and will not transfer. 

Can a NEW dealer operate from a trailer or mobile home?

Yes, if the wheels are removed and the dealer OWNS the property the trailer is on.  If the dealer owns the property and the trailer or mobile home is permanently affixed, the dealer can have the county assessor issued an “affidavit of affixture” which makes the trailer a permanently enclosed structure.  The trailer will then be issued a DEED rather than a title.  A dealer who is only renting the property may not sell NEW products from a trailer.

Is a broker required to have a separate entrance that opens to the outside?

No. A Broker is not required to have an “established place of business” as defined in ARS 28-4301.8(a). A Broker must have a commercial location and meet security and sign requirements as outlined in the Dealer Licensing website for a “principle place of business” as outlined in ARS 28-4406.B.

Can a sign be painted on glass?

Yes, the sign may be painted on a window or storefront and must meet all requirements including size and verbiage as outlined in ARS 28-4406.

Can my sign be a banner?

No. A banner is not considered permanent as outlined in ARS 28-4406.

Can I use a Clearance Card instead of submitting a fingerprint card?

No. An applicant/owner, who owns 20% or more interest in the business, must go through a Criminal Records Check using pre-printed Dealer Licensing fingerprint cards. New/franchise dealers are exempt from the Criminal Records Check.

Can an Arizona wholesale dealer sell vehicles to dealers in other countries?

Yes, but the dealer is responsible to ensure that the buyer is an actual licensed dealer in the country of license and must keep proper records as required by law.

What is the minimum time period my property lease can be when I submit a copy of it with my application?

Six months

Branch Application

What are the requirements to have a Branch license?

A branch dealer license uses the same bond policy as the main license. The location must be within the same county as the main license; the owners must be the same; the business name must be the same, although a DBA may be different; franchise products may be different, if applicable.

Can branch license records be maintained at a different location?

No, the records must be stored at the physical location where business is conducted.

Dealer Record Amendment

How do I change my business name or location?

Submit a Dealer Record Amendment via your dealer community account, including a bond rider showing the updated information and required fee.  No business may be conducted until you receive a revised license certificate by email.  NOTE: A new motor vehicle dealer also needs a letter of authorization acknowledging the new name/location from each manufacturer of their franchised products.

What if I am adding an individual to an existing dealer license?

Complete an Add/Delete via your dealer community account, including a copy of amended corporate articles or corporate minutes noting the change.  If the individual is already on an existing dealer license, a Criminal Records Check is not required.  If the individual owns 20% or more interest in the business they are required to go through the Criminal Records Check. 

What if I am deleting an individual from an existing license?

Submit an Add/Delete and provide a copy of the corporate amendment or corporate minutes deleting the individual.

Dealer Plate Application

When do I pay my dealer plate fees?

When you submit your dealer application, you may pre-order dealer plates by completing and submitting a Dealer Plate Application. The dealer plate fee will be included with the dealer license fee in an invoice that will be emailed to you after the application has been accepted and Criminal Records Check has been concluded. NOTE: Your dealer license and dealer plates, if applicable, are renewed annually.

What processes does 48-5125 Dealer Plate Application cover?

Order new or additional dealer plates; if a dealer plate has been lost/stolen, request cancellation and replacement of the plate; order duplicate registration for a dealer plate; cancel a dealer plate.

Manufacturer/Distributor Application

How do I add a dealership in another county?

Complete and submit a motor vehicle dealer application with the appropriate fees and an original surety bond for the appropriate amount. If the listed owners are currently on a dealer license, Criminal Records Check will not be required. If you are a NEW motor vehicle dealer, submit a letter of authorization from each manufacturer for each franchise product listed.

New Franchised Motor Vehicle Dealers

What if I am adding a new product line?

Submit a copy of your Manufacturer Authorization letter that is on the Manufacturer’s letterhead that states your dealership name, physical address, effective date and authorized signature and a 10-mile radius check will be conducted prior to the product being added to your record. NOTE: The manufacturer or the authorized distributor must be licensed in Arizona by Dealer Licensing before any new product may be sold by a dealer in this state.

What if I am deleting a new product line?

If the termination of the franchise is mutual between the manufacturer and the franchisee, submit a letter from the franchisee and the manufacturer to terminate that product line from a dealership. 

If the termination is not mutual, the manufacturer must submit a letter that addresses the request for termination to MVD and contain the following:

  1. A statement of the franchisor’s intention to terminate, cancel or not renew the franchise
  2. The reasons for the termination, cancellation or nonrenewal
  3. The date on which the termination, cancellation or nonrenewal is effective

Cancel My Dealership

What if I have sold the dealership and have a buy-sell agreement?

Business may not be conducted until the new principal(s) are issued a dealer license. A Motor Vehicle Dealer Application is required, a copy of the buy/sell agreement and letter(s) of termination from the manufacturer(s) as well as all requirements as outlined in the Dealer Licensing website.

How do I cancel my dealer license?

Submit a written notification, signed by an owner requesting cancellation of your dealer license. Return the dealer license certificate and all dealer plates associated with the dealer license. New Motor Vehicle Dealers are required to submit a franchise letter of termination from the manufacturer.

What if I have more questions?

Send us an email [email protected].