Motor Vehicle Dealer Bond
Meet ADOT MVD dealer licensing security before you open the lot
Arizona dealers must file a classification-based surety bond with ADOT Motor Vehicle Division. Amounts are set by A.A.C. R17-5-402 under A.R.S. § 28-4362 — not a flat out-of-state schedule.
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An Arizona motor vehicle dealer bond is a three-party surety obligation that protects consumers and the state when a licensed dealer fails to remit prepaid title, registration, or related fees or fails to deliver clear title as required by A.R.S. § 28-4362.
The surety bond guarantees that the principal will perform the duties required under A.R.S. § 28-4362 - A.A.C. R17-5-402 up to the penal sum.
A claim may arise if the principal fails to comply with the bonded Arizona obligation or causes covered loss to the obligee or protected parties.
If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.
Amount, premium, term, and the authority that requires this filing.
Any business seeking an ADOT MVD motor vehicle dealer, broker, wholesale, auction, or automotive recycler license for an Arizona location needs the matching statutory bond.
File an original ADOT vehicle dealer bond (Form 38-1301) for each license and each county where you maintain an established place of business, in the exact penal sum for your classification.
Share your license type, court order, or obligee form and the exact penal sum required by Arizona Department of Transportation - Motor Vehicle Division (ADOT MVD).
We review credit and filing details, then quote premium options through licensed surety markets.
Once approved, we issue the bond for delivery to State of Arizona - ADOT Motor Vehicle Division or for your Arizona filing package.
The amount is $100,000 for new, used, or public consignment auction dealers; $25,000 for brokers and wholesale dealers or wholesale auctions; $20,000 for automotive recyclers (separate original bond per license and county), as set under A.R.S. § 28-4362 - A.A.C. R17-5-402 and confirmed with Arizona Department of Transportation - Motor Vehicle Division (ADOT MVD).
The obligee is typically State of Arizona - ADOT Motor Vehicle Division. Always match the exact name on the Arizona form.
Many Arizona filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.
Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.
Most bonds renew on the term shown (1 Year). Keep continuity so your Arizona license or filing does not lapse.
Next step
We’ll match the requirement and route the application.
Apply for this bond