FOR ALL YOUR SURETY BOND NEEDS.
Apply for an Arizona Surety Bond today! Single Source Insurance is a leading AZ bonding company providing bonds through a convenient online application system.
Arizona considers�anyone who sells more than four motor vehicles a year to be an auto dealer and requires them to obtain an Arizona auto dealer license. Purchasing an Arizona vehicle dealer bond is a key part of the licensing process.
The purpose of the bond is to protect the state and consumers from financial loss caused by dealers who conduct their business in an unlawful or unethical manner. By purchasing this kind of surety bond, you�re guaranteeing that you will operate your business in accordance with all relevant Arizona laws.
There are three types of Arizona dealer bonds. These have different required bond amounts for different types of dealers:
| Bond Amount | Dealer Type |
| $100,000 | New Motor Vehicle Used Motor Vehicle Public Consignment Auction Dealer |
| $25,000 | Broker Wholesale Auto Auction Dealer Wholesale Motor Vehicle Dealer |
| $20,000 | Automotive Recycler |
If your business falls into any of these categories, you will need to obtain the appropriate bond in order to acquire or renew a vehicle dealer license.
The three parties in the bond contract are:
Anyone who suffers a financial loss as the result of a dealer�s failure to comply with the terms and conditions of the bond has the right to file a claim. The surety will evaluate the claim and determine whether or not is valid. The surety will subsequently advance payment of a valid claim to the claimant, then collect reimbursement from the principal.
You will pay only a small percentage of the required bond amount as the premium to purchase the bond. For people with good credit, that will be in the range of 1% to 5%, or $1,000 to $5,000 per year for a new or used vehicle dealer. For individuals with lower credit ratings, we can still offer the most competitive premiums with financing sometimes an option.
After you�receive your bond from Single Source Insurance, you will need to sign it and mail it along with the attached power of attorney to:
Motor Vehicle Division
Dealer Licensing Unit
P.O. Box 2100
MD 552M
Phoenix, AZ 85001
The Arizona Motor Vehicle Division of the Department of Transportation establishes the requirements for auto dealer licensing. For a guide to the dealer licensing process in Missouri,�view our blog post here.
At Single Source Insurance, our vast experience and professional staff make us the ideal choice to meet your bonding needs. Use our convenient online form to apply for an Arizona Auto Dealer Bond today!
