Arizona NEW Motor Vehicle Dealer Bond
Overview
Arizona handles its dealer bond differently from most states: rather than fixing one amount in statute, the legislature set a range and let the Motor Vehicle Division's director prescribe the figure. A.R.S. section 28-4362 requires every applicant for an original or renewal motor vehicle dealer license to file a bond in an amount prescribed by the director — at least $20,000 for automotive recyclers and not more than $100,000 for all other license classes, which include new motor vehicle dealers. The bond is filed with ADOT MVD on the state's Vehicle Dealer Bond form 38-1301.
Who Needs This Bond?
Applicants for an Arizona new motor vehicle dealer license through the Arizona Department of Transportation's Motor Vehicle Division file this bond with their original application and keep it in force through every renewal. A.R.S. 28-4362 applies across the dealer license classes MVD issues, with the director prescribing the amount within the statutory range for each class — so if MVD's dealer licensing unit has told you the bond amount for your new-dealer license, that figure comes from this statute's framework.
What is this Bond For?
The bond financially backs the dealer's compliance with Arizona's vehicle dealer laws. If a licensed dealer's unlawful conduct in a vehicle transaction — failing to deliver good title, mishandling fees and paperwork, or violating Title 28's dealer provisions — causes a monetary loss, the bond provides a source of recovery for the harmed party. As with all surety bonds, the dealer must reimburse the surety for any valid claim paid, so the bond is accountability for the dealer, not insurance protecting the dealer.
When is it Required?
The bond must be on file when MVD issues the original license and must remain in effect for license renewal — A.R.S. 28-4362 ties the filing to both original and renewal applications. Have the executed form 38-1301 ready when you submit your dealer license package, and keep coverage continuous: a lapsed bond breaks a condition of licensure.
Where Does it Apply?
This is a statewide Arizona requirement administered by ADOT's Motor Vehicle Division, which licenses vehicle dealers under Title 28, Chapter 10 of the Arizona Revised Statutes. It applies to licensed dealers throughout Arizona, and the bond is executed on MVD's own prescribed form (38-1301) naming the dealer as principal.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Arizona dealer bond is ready to file with ADOT MVD as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the Arizona Revised Statutes and ADOT's official bond form in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond to you in time for your MVD filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- Bond required for original and renewal dealer licenses in an amount prescribed by the director — at least $20,000 for automotive recyclers and not more than $100,000 for all other license classes: Arizona Revised Statutes §28-4362 (verified July 16, 2026)
- Official ADOT MVD Vehicle Dealer Bond form (38-1301): ADOT MVD Form 38-1301 (verified July 16, 2026)