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Arizona bonds

Arizona — USED Motor Vehicle Dealer Bond

Arizona used motor vehicle dealers need the bond assigned to their license class. It protects against covered losses from unpaid title or registration fees and failure to deliver clear title. Start the application with Propeller.

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Recorded state
Arizona
Category
Vehicles, titles & transportation

What this bond does

To protect individuals from losses due to nonpayment of title/registration fees or a dealer's failure to deliver a clean vehicle title.

Who needs it
The Arizona used motor vehicle dealer named as principal on the ADOT application.
Who it protects
Person who suffers loss due to nonpayment of title fees or failure to deliver a clean title.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Bond Coverage

The bond protects customers from financial harm caused by title non-delivery or failure to pay registration fees.

Bond Amount Range

The bond amount is determined by the director, ranging from $20,000 for recyclers to $100,000 for other dealer licenses.

Cancellation Notice

Surety bonds must remain active and require significant notice prior to cancellation.

Sources

Have these ready

  1. Have the used-dealer business name and ADOT license details ready.
  2. Use the amount and approved form assigned to your used-dealer class.
  3. After issuance, check the completed bond before submitting it with the license paperwork.

Questions about this bond

What is the primary function of this bond?

It provides financial protection for customers if the dealer fails to deliver a valid vehicle title free of prior liens or fails to pay required title/registration fees.

Can the bond be canceled immediately?

No, it is cancellable only on at least sixty days' prior notice to the director.

Is the state named on the bond?

Yes, the bond must be executed with the applicant as the principal and the state as the obligee.

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