Arizona Chronological Dealer Pre-License Checklist

  1. Create Arizona Business Entity - You must establish your business entity before you apply for your license
    Before you apply for your license you must establish a business entity with the Alaska, obtain an employer ID number, and a local business license. Click on the "Create Alaska Business Entity" link then click the yellow "Start a Business Now" button, then select "Alaska" from the drop down menu and select the options that are best for you. If you have any questions you will be connected to Tracy Newman our Business Entity Registration Specialist.
  2. Obtain Dealer Surety Bond - Use this link for our Automated Bond Quoting System. With good credit your bond should cost around $400 to $500. With bad credit you can make low monthly payments on your bond.
    If you click on the "Obtain Dealer Surety Bond" link you will be connected to my automated surety bond quoting system that will match your credit score with the bond company that specializes in issuing bonds to dealers with your credit score. I believe this will lead to the lowest bond quote on the first quote. Use the link to quote and bond in moments. (Please note: The Obligee must be the Motor Vehicle Division for your dealer license)
  3. Ensure Location is Zoned for Dealer License-Location must be zoned for a dealer license. If located in a city, contact your city zoning office. If located in a county, contact the county courthouse.
    Use Google or an AI search tool using terms such as Alabama Dealer Office, Dealer Lot For Rent or Sale. You can also check Craigslist, LoopNet, Crexi, CommercialSearch, and Rightmove. I will discuss location requirements extensively in your Texas Dealer Pre-License Course
  4. Background Check- You must complete the Backgound Check Form to show that you have not been involved in motor vehicle crimes.
    The State wants to ensure they are not licensing anyone with past automotive crimes.
  5. Obtain Business Insurance- The State of Arizona requires dealers to be insured at all times.
    At mimimum you will need a $25,000 bodily injury/person/accident, $50,000 combined bodily injury/accident, $25,000 property damage/accident or a combined single limit of $75,000/accident. Your insurance agent will be able to explain the coverages more in depth.
  6. Apply for License at ADOT Force - When you have completed all of your pre-license steps you will scan some documents then upload them at the ADOT Force website.
    I cover the entire dealer application process in your dealer pre-license course so you will submit your application correctly. This will assist you in getting your dealer license approved as soon as possible.
  7. Dealer License is Granted - The State should issue your Dealer License in 30 to 45 days. You can then enter dealer auctions, buy vehicles at wholesale, and sell them at retail .
    After your application approved, the State will notify you via email that you are licensed. Once you are licensed you can print your dealer license from the ADOT website.

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    Thank You Very Much!

    Good luck with your new business,
    Delus Johnson

    Delus Johnson