How to Get a Dealer License in Arizona: Cost & Requirements

Last updated: August 18, 2026

Arizona has the cheapest dealer license fee in this series and one of the most expensive bonds. The state charges just $115 — and waives even that for veterans, military spouses and low-income applicants — but requires a $100,000 surety bond before it will issue the license. The other gate is physical: a sign visible from 300 feet that cannot be a banner.

Seven Vehicles, Rolling

Arizona statute defines a used motor vehicle dealer as a person who buys, sells, auctions, exchanges or negotiates the sale of seven or more used motor vehicles in a continuous 12 month period. So six is legal and the seventh triggers the license.

The word doing the work is continuous. This is a rolling window, not a calendar year — four sales in November and three the following February puts you over the line, even though no single calendar year hit seven.

The $100,000 Bond

The statute lets the ADOT director set the bond anywhere up to $100,000, and for used motor vehicle dealers the director has set it at the ceiling. You file form 38-1301, Vehicle Dealer Bond, in the amount of $100,000, together with a power of attorney issued by the insurance company.

You do not pay $100,000 — that is the penal sum, and your premium is a percentage of it driven by your credit and financials. But it is the single largest number in the Arizona application, and it is why your personal credit matters here even though Arizona, unlike Colorado, sets no published credit score minimum.

The bond covers two specific failures: non-payment of a title, registration or related fee a customer paid you, and failure to deliver a valid title free of liens. It cannot be cancelled without 60 days’ notice to ADOT.

What It Costs

Item	Cost	Notes
Licensing fee	$100	Waivable — see below
Application fee	$15	Waivable — see below
Vehicle Dealer Bond (form 38-1301)	$100,000 penal sum	Premium is a fraction of this; power of attorney required
Third party lender contract fee	$300	One-time, only if you sell on a non-cash basis
Dealer or trailer plate	$30 each	Plus postage
Motorcycle plate	$10 each	Plus postage
Arizona LLC	$50	$85 expedited; no annual report required

Used dealers may hold no more than 15 plates, plus one additional plate for every 50 vehicles sold based on reported sales in the previous license year.

The Fee Waiver Almost Nobody Mentions

Arizona waives both the $100 licensing fee and the $15 application fee for first-time individual applicants in three situations:

• Household income at or below 200% of the federal poverty guidelines — you provide last year’s tax return as proof.
• Spouse of an active duty military service member.
• An honorably discharged veteran discharged not more than two years before submitting the application.

Proof is required in every case. It is a small dollar saving against a $100,000 bond, but it is real, it is in ADOT’s own policy, and virtually no dealer-license guide mentions it.

What the Lot Has to Look Like

An established place of business in Arizona means a permanent enclosed building or structure with room to display two or more motor vehicles. Used and trailer dealers may operate from a vacant lot, but a residence or a temporary structure never qualifies. On top of that, ADOT wants photographs of:

• All four sides of the building, the entire lot, and the office area.
• A secure file cabinet — an actual photographed requirement, because your deal jackets have to be locked up.
• The business sign: permanently affixed, visible from 300 feet during daylight, and not a banner.
• Your posted days and hours of operation.

You also file a lease or deed running at least six months, a copy of your actual Transaction Privilege Tax license (the license itself, not the receipt), and fingerprints with form 46-0407 for the criminal background check, which every owner of 20% or more must clear.

How to Get Licensed, In Order

1. Form the entity with the Arizona Corporation Commission and confirm it is verifiable on the ACC website.
2. Get your TPT license from the Department of Revenue and keep the license document itself.
3. Secure a location on a lease or deed of at least six months, and install a permanent sign readable from 300 feet.
4. Bind the $100,000 bond on form 38-1301 with the surety’s power of attorney.
5. Submit fingerprints and form 46-0407 for every owner holding 20% or more.
6. Photograph everything and file through ADOT Force with the $115 in fees, or claim a waiver if you qualify.

Frequently Asked Questions

How many cars can I sell in Arizona without a dealer license?

Six. Arizona defines a used motor vehicle dealer as a person who buys, sells, auctions or exchanges seven or more used motor vehicles in a continuous 12 month period, so the seventh sale is what requires the license. Note that it is a rolling 12 months, not a calendar year.

How much does an Arizona dealer license cost?

$115 total: a $100 licensing fee plus a $15 application fee. Dealers who sell on a non-cash basis under an agreement with a bank or finance company pay a one-time $300 third party lender contract fee. Dealer and trailer plates are $30 each plus postage, and motorcycle plates are $10.

Can the Arizona dealer license fee be waived?

Yes, for some first-time individual applicants. Arizona waives both the $100 licensing fee and the $15 application fee for an applicant whose family income does not exceed 200 percent of the federal poverty guidelines, for the spouse of an active duty military service member, and for a veteran honorably discharged not more than two years before applying. Proof is required in each case.

What does Arizona require for a dealership lot and sign?

Your business sign must be permanently affixed, visible from 300 feet during daylight, and it cannot be a banner. You upload photographs of all four sides of the building, the entire lot, the office area, a secure file cabinet, the sign, and your posted days and hours. You also need a lease or deed running at least six months.

Taxes, the Transaction Privilege Tax, licensing and hiring are covered in our full guide to starting a business in Arizona.

Sources

Source	What It Covers
ADOT MVD — Applying to be a Used Motor Vehicle Dealer	$100,000 bond on form 38-1301, $100 + $15 fees, fee waivers, plate fees and caps, lot and signage photo requirements, six-month lease, TPT license
A.R.S. § 28-4301	Seven-vehicle rolling threshold; definition of established place of business
A.R.S. § 28-4302	$15 filing fee, $100 annual license fee, $300 third party lender fee
A.R.S. § 28-4362	Bond authority and the $100,000 ceiling; 60-day cancellation notice
A.R.S. § 28-4361	Application contents, business hours, fingerprints for owners of 20% or more