The Arizona Motor Vehicle Dealer Licensing Guide to Get You Started

Horseshoe Bend in Arizona

Horseshoe Bend in Arizona

Are you a prospective Arizona auto dealer? This guide is here to help you get your Arizona dealer license.

As with any new business, opening a dealership in Arizona involves a series of administrative steps. There are considerable expenses involved, as well. Thus, it is wise to get thoroughly acquainted with the licensing process in advance, so that there are no unpleasant surprises along the way.

The first decision you will have to make is what kind of business you would like to set up. In Arizona, there are six kinds of dealer licenses. These are for: new motor vehicle dealers, wholesale motor vehicle dealers and auction dealers, used motor vehicle dealers, automotive recyclers, brokers and public consignment auction dealers. After you choose your trade, you can go on with the license application and documents.

Let’s delve into the details of the licensing process to help you prepare.

 

The Arizona dealer license

Arizona auto dealers need to get licensed.

Arizona auto dealers must be licensed

So, how do you go about the licensing process? Your point of reference will be the Dealer Licensing Services of the Arizona Department of Transportation (ADOT). All dealers will have to get an ADOT Motor Vehicle Dealer License; some will also need the Arizona Department of Financial Institutions (AZDFI) Motor Vehicle Dealer License. The AZDFI license is required if over the period of one year you sell three or more vehicles in retail on a non-cash basis. Check out the revised Arizona Transportation Legislation, which is available online, for more details.

You can apply for your ADOT and AZDFI licenses together through an online application form on ADOT’s website. If you already have an ADOT license and you now also need an AZDFI license, then you have to apply directly on AZDFI’s website. The licenses must be renewed annually.

For the ADOT license, you will need to provide:

The fees involved in the ADOT licensing process include a $100 license fee, a $10 provisional license fee, $15 for application filing, $22 for Criminal Records Check per person and $50 per Branch Office, if applicable. When filing your application initially, you only need to pay the $15 filing fee. The AZDFI fee is $300 for a motor vehicle dealer license and $150 for its renewal.

 

The Arizona vehicle dealer bond

Car dealers in Arizona also need to get bonded.

Car dealers in Arizona have to get bonded, in addition to getting licensed.                                InSapphoWeTrust / Flickr / CC BY-SA

As you can see, one of the main requirements for obtaining an Arizona auto dealer license is getting an Arizona vehicle dealer bond. To do so, you will pay a bond premium, which is a percentage of the bond amount.

Unlike the insurance you also need for your dealership, the license bond is not a safety net for your business. Instead, it guarantees to your customers that your company will abide by state regulations, thus increasing the credibility and trustworthiness of your business.

The bonding amounts vary among the six different categories of licensed dealerships in Arizona. New and used motor vehicle dealers, as well as public consignment auction dealers, have to get a $100,000 bond. For brokers, wholesale auto action dealers and wholesale motor vehicle dealers, the required bond is $25,000. Finally, automotive recyclers have to get a $20,000 bond.

 

Ready to roll?

Now that you’ve gone through this detailed explanation of the licensing and bonding process for auto dealers in Arizona, you can safely start your own journey in the business. If you still have any questions regarding bonding, we are here to help. Contact us to get all the answers.

Conditions in the Construction Industry Are Improving

Construction Industry on the Rise
Construction Industry on the Rise

According to the recent infographic Construction Industry on the Rise, builders have plenty of reasons to feel optimistic about 2014. 30% of people in construction have positive outlooks for the industry in the coming months.

Construction employment is steadily improving, as many companies have about a quarter of their current staff to-hire positions. Last year, 51% of contractors hired new staff, and 41% of the others are envisioning hiring in the near future. 62% of all construction companies are searching for qualified staff currently.

The areas deemed as most profitable for contractors in 2014 are manufacturing, retail, lodging and warehouse and higher education and hospitals.

Read the full article at Lance Surety Bond Associates.

NADA Report: Flat profit for auto dealers for 2013

NADA 2014 Report
NADA 2014 Report

.   According to the National Automobile Dealers Association (NADA)’s report for 2013, even though auto sales increased during last year, the 17,665 dealers of new cars did not make profit, as there was tougher competition. Profitability stayed at 2.2%.   Pre-tax profit of dealerships is $923,248, which is 10% higher than the previous year. New car dealerships made total revenue of $730 billion, which is an increase of 8.8% from 2012.   In general, auto sales rose by 7.6% in 2013, which means 15.6 million vehicles sold.   Employment in the industry is improving, as now there are more than 1 million people working in the business. This is an improvement, especially since the recession in 2009. Back then employment felt dramatically, as several thousand dealerships were closed. Read the full article at Detroit News.

FMCSA: Rules on Commercial Drivers' Physicals


Mink / Foter / Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic (CC BY-NC-SA 2.0)

As of May 21, 2014, the FMCSA requires interstate truckers and bus drivers to have their physical examinations done by certified medical examiners listed in the National Registry of Certified Medical Examiners. The Registry currently contains about 22,000 trained medical professionals, who are qualified to perform the examination.

The requirement aims to guarantee that commercial drivers are healthy and in good shape when performing their job. Certified examiners have an understanding of the DOT standards for fitness for this occupation, so they can make an adequate assessment of each driver. Ultimately, the purpose is to ensure higher safety on the road, which affects both commercial drivers and other travelers.

Certified medical professionals examine a range of health factors, such as respiratory and muscular functions, heart disease, hearing and vision. Commercial drivers must pass the examination every two years in order to operate legally.

Read the full article at FMCSA.

 

Mortgage Servicing Restrictions Criticized by the ICBA


jcolman / Foter / Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic (CC BY-NC-ND 2.0)

Stricter mortgage servicing rules that are likely to be imposed on community banks are seen as a threat to consumers’ mortgage options by the Independent Community Bankers of America (ICBA). According to the Community, the tighter rules that federal banking regulators are considering might result in community banks leaving the mortgage servicing field. This would harm the diversity of choice, as well as the quality of services for consumers.

According to the ICBA, community banks should be exempted from the Basel III capital standards that impose stricter rules on mortgage-servicing rights. If community banks are driven out of the field, mortgage servicing will be done only by larger nonbanks. These are seen as not fully capable to meet the needs of local communities, as they focus on larger scale operations with less interest in providing quality customer service.

Read the full article at National Mortgage Professional.

Steady Level of Builder Confidence Remains


USACE HQ / Foter / Creative Commons Attribution 2.0 Generic (CC BY 2.0)

According to the just released Housing Market Index (HMI), the builder confidence for single-family homes lost just one point in May, falling to 45, which is very close to the reading of 46 for April. The index measures the perception of builders about single family home sales, as well as about prospective customers’ rate.

The regional HMI scores show that the South grew to 48, the Midwest fell by one point to 47, and the West fell by four points to 47.

Builders expect some sales increase in the coming months, but are in generally realistic about the slow and steady recovery of the market. It is clear that the construction market will stabilize even more whenever job growth and consumer confidence are back at their normal levels.

Read the full article at National Mortgage Professional Magazine.