Motor Vehicle Dealer Bond
ADOT MVD dealer surety — $100,000 new or used, $25,000 wholesale
Arizona motor vehicle dealers file a surety bond with ADOT Motor Vehicle Division under A.R.S. § 28-4362 before a dealer license issues. Live classes: new dealer $100,000, used dealer $100,000, wholesale dealer $25,000, wholesale motor vehicle auction $25,000.
You are applying for this bond — opens in a new window.
An Arizona motor vehicle dealer bond is the ADOT MVD surety required to license a new, used, wholesale, or wholesale-auction dealer. It protects the public if the dealer fails to meet licensing obligations.
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 applying for or renewing an Arizona motor vehicle dealer license through ADOT MVD needs the bond that matches its class.
Purchase the surety for your ADOT class on an approved form, then file proof with your dealer license application or renewal.
Match new or used ($100,000) or wholesale / wholesale auction ($25,000). That class is what ADOT MVD licenses.
Submit the application for that Arizona dealer class. Underwriting confirms the amount and issues the surety.
Once issued, file the executed bond with ADOT Motor Vehicle Division so the dealer license can issue or renew.
New and used dealers are $100,000. Wholesale dealers and wholesale motor vehicle auctions are $25,000. Match the class ADOT MVD issues.
Arizona Department of Transportation — Motor Vehicle Division (ADOT MVD), under A.R.S. § 28-4362.
Yes. Both the new-dealer and used-dealer classes are $100,000. Wholesale classes are $25,000.
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.
Also need coverage?
Need more than a bond? Through the same agency desk we can discuss commercial coverage for the whole business.