How to Become a Car Dealer in Arizona

How to Become a Car Dealer in Arizona

Starting a car dealership in Arizona involves meeting specific licensing requirements regulated by the Arizona Department of Transportation (ADOT) Motor Vehicle Division. This guide outlines each step to help you launch a compliant dealership in Arizona.

1. Choose the Type of Dealer License

Arizona offers various types of licenses:

• New Motor Vehicle Dealer

• Used Motor Vehicle Dealer

• Wholesale Dealer

• Broker

Determine which license applies to the type of vehicles you intend to sell.

2. Secure a Business Location

Your location must include:

• A permanent structure with a business office

• A display area for vehicles

• A sign displaying the dealership's name (minimum 6 inches in height)

• Compliance with all local zoning ordinances

3. Register Your Business

Register your entity with the Arizona Corporation Commission or the Secretary of State. You’ll also need a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue.

4. Obtain a Federal Employer Identification Number (FEIN)

Apply for a FEIN with the IRS for tax filing and employment purposes.

5. Obtain a Surety Bond

Used and wholesale dealers must submit a $100,000 surety bond. New car dealers require a $25,000 bond.

6. Get Fingerprinted

All owners, partners, and corporate officers must complete fingerprint clearance through an approved provider. The fingerprint card is submitted with your license application.

7. Complete the Application

Submit the Arizona Application for Dealer License, which includes:

• Surety bond

• Proof of liability insurance

• Lease or proof of property ownership

• Photographs of the business site

• Fingerprint cards and background check consent forms

8. Attend the Pre-Licensing Seminar

All applicants must attend an ADOT-approved pre-licensing seminar before submitting their application.

9. Submit Application and Await Approval

Mail or deliver your complete application packet to:

Arizona Department of Transportation Motor Vehicle Division, Dealer Licensing Unit 1801 W. Jefferson St., Phoenix, AZ 85007

Once reviewed and approved, you will receive your license.

After obtaining your dealer license, consider using Carprolive for all your automotive software needs. From managing your inventory and offering a professional dealership website to accessing a full print forms library and enabling e-signature capabilities, Carprolive is built to support new and growing dealerships every step of the way.

Please note: The contents of this article are subject to change with any regulatory or legislative updates. This article does not constitute legal advice. Always verify the information with your state’s regulatory agency before proceeding.

Sources:

• Arizona Department of Transportation – Dealer Services

• Arizona Dealer License Application Packet

• Arizona Department of Revenue – TPT License

• Arizona Corporation Commission