Motor Vehicle Dealer Bonds – Arizona

In Arizona, all licensed motor vehicle dealers are required to carry a bond. There are three types of bonds that we provide to meet Arizona Department of Transportation requirements: the $100,000 used/franchise dealer bond, the $25,000 wholesale/broker auto dealer bond, and the $20,000 auto recycler bond. Our bond process will take about one minute from beginning to end.

Jet Insurance Services, Inc. offers the lowest bond rates from the best A-Rated surety providers in Arizona. We send the issued bonds directly to the dealer to be filed with the Arizona Department of Insurance.

How Much Does an Auto Dealer Bond Cost in Arizona?

Motor vehicle dealer bond costs depend on the type of dealer, personal credit, years in business, and license status.

Price Tier* Motor Vehicle Dealer Bond
Monthly | Annual
Preferred $12 | $125
Standard $21 | $250
Credit Repair $47 | $599
Motor Vehicle Dealer Bond
Price Tier
Monthly | Annual
$12 | $125
$21 | $250
Credit Repair
$47 | $599
*Prices are based on several factors including, but not limited to, personal credit, license history, years in business, and active licensing and bonding. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.

In Arizona, franchise and used auto dealers are required to carry a $100,000 surety bond which is a larger than normal limit. Even with the high bond amount, Jet’s bond prices start at $56 monthly or $675 annually if paid in full up front.

Wholesales and brokers only need a $25,000 surety bond. Their motor vehicle bond price starts at $13 monthly or $150 annually if paid in full.

Arizona automotive recyclers have the lowest limit of the three requirement with a $20,000 surety bond. The auto recycler bond rate starts at $11 per month or $120 for the year if paid in full.

How Can a Dealer Apply for a Bond Online?

By clicking the apply now button below, the application will guide you through the quick process to get your quote in just minutes.

Bond Applications for Alabama

$25,000 Motor Vehicle Dealer Bond

Why Does Arizona Require the Car Dealer Bond?

Like other states, the motor vehicle dealer bond is a requirement put in place to protect both the public and the state from the auto dealer. It is a means of making sure regulations are followed by the dealership in order to operate efficiently and remain licensed. Some regulations that are being agreed to when getting a bond are as follows: providing a title along with the sale of a vehicle, paying the required fees and taxes, and reporting each vehicle sale.

A separate bond is needed for each county that the dealer is licensed in, and must be applied for separately. The power of attorney must be sealed and included with each bond when sent in. The surety bond is just one of the many requirements to be a licensed auto dealer on Arizona.

The motor vehicle dealer bond is enforced by the Arizona Department of Transportation Motor Vehicle Division. Should any illegal action happen, a claim can be filed against the surety bond for up to the full penalty amount.

What to Do If a Claim is Filed on Your Surety Bond?

When a complaint is brought up on a car dealer bond, the surety company will look into the claim first to verify it’s legitimacy. If the claim is indeed valid, the surety company will contact the licensed dealer to first see if the claim can be disputed with the customer before any civil litigation occurs. If the claim is not dealt with, the surety company will cover up to the full costs of the bond amount. The principal is then legally required to pay back the full amount paid by the surety, along with all legal fees incurred.

It is best to avoid claims being made against your bond, as a claim that is not dealt with properly can lead to the suspension of your license.