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.
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.
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
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.
Apply for a FEIN with the IRS for tax filing and employment purposes.
Used and wholesale dealers must submit a $100,000 surety bond. New car dealers require a $25,000 bond.
All owners, partners, and corporate officers must complete fingerprint clearance through an approved provider. The fingerprint card is submitted with your license 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
All applicants must attend an ADOT-approved pre-licensing seminar before submitting their application.
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