Dealer Services and Licensing

Motor Vehicle Dealer Licensing

Dealer License Types

Basis Guidelines for Motor Vehicle Dealers License Types

CONGRATULATIONS!

You have made the decision to become a licensed motor vehicle dealer and are ready to submit an application for the type of license for which you will be conducting business.

Your license may be impacted by statute specific to its type.

Please review this page to determine the license type for which you want to apply.

PRESENTATION (printable)

License Types and What Each Is Allowed To Do

New Dealer

You can sell new and used vehicles retail, wholesale and on consignment.

  • Need a franchise appointment letter from the manufacturer of the make of vehicle you are selling.
  • You are required to operate from your licensed established place of business.

Used Dealer

You can sell used vehicles retail, wholesale and on consignment.

  • You are required to operate from your licensed established place of business.

Public Consignment Auction Dealer

You can sell retail ON consignment ONLY and ONLY at live action.

  • You are required to operate from your licensed established place of business.
  • You may not buy from a wholesale dealer or the public.

Wholesale Dealer

You can sell wholesale ONLY to other licensed dealers.

  • You may not advertise or give the appearance of selling or offering to sell retail.
    • Non-compliance may result in civil penalties of $1,000 ‐ $3,000 per sale or offer to sell and loss of license.
  • You must title all vehicles in name of wholesale license before transferring title.
  • You may operate from your residence as your licensed principle place of business.

Wholesale Auction Dealer

You can act as a clearing house for dealer to dealer sales.
  • Solely in wholesale transactions to licensed motor vehicle dealers AND
  • You do not buy, sell or own the vehicles auctioned in the ordinary course of business.

Broker

You can act as a locator service to find a specific vehicle for your customer and provide a service of arranging or assisting in effecting the purchase of a motor vehicle.

  • You may not advertise for sale or exchange any specific motor vehicle OR
  • be an employee or agent of a new, used, auctioneer, manufacturer or a wholesale dealer.

Manufacturer

You can franchise licensed dealers to sell your product; you may not sell direct to the consumer.

Distributor

You can franchise licensed dealers to sell your product; you may not sell direct to the consumer.

Auto Recycler

You can buy vehicles for the purpose of dismantling and selling the parts and accessories.
Questions

Need Answers?
For Additional Resources

  • Call Dealer Licensing at 602.712.7571, option 7
  • Review Arizona Revised Statute, Title 28 Chapter 10
  • Contact Arizona Independent Auto Dealers Association (AIADA) for information regarding compliance classes at 602.246.1498

The Arizona Ombudsman – Citizens Aide helps you resolve ongoing issues with State Agencies.

Civil RightsTitle VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act (ADA)

Pursuant to Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act (ADA), ADOT does not discriminate on the basis of race, color, national origin, age, sex or disability. Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Civil Rights Office at civilrightsoffice@azdot.gov. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

De acuerdo con el título VI de la Ley de Derechos Civiles de 1964 y la Ley de Estadounidenses con Discapacidades (ADA por sus siglas en inglés), el Departamento de Transporte de Arizona (ADOT por sus siglas en inglés) no discrimina por raza, color, nacionalidad, edad, género o discapacidad.  Personas que requieren asistencia (dentro de lo razonable) ya sea por el idioma o por discapacidad deben ponerse en contacto con la Oficina de Derechos Civiles en civilrightsoffice@azdot.gov. Las solicitudes deben hacerse lo más pronto posible para asegurar que el equipo encargado del proyecto tenga la oportunidad de hacer los arreglos necesarios.