License & Permit Bonds

What You Need to Know About Arizona Auto Dealer Bonds


A motor vehicle dealer bond, also referred to as a DMV bond, ensures the compliance of a motor vehicle dealer with state, federal, and local laws, including any tax and judgement parameters related to motor vehicles.  Motor vehicle bonds, also known as auto dealer bonds and car dealer bonds, confirm the safety of the consumer from any consequence as a result of fraud or dishonesty from the dealer and/or its employees. These consequences include wrongful behavior on behalf of the business delivering a product or service, defaulting on a contract, and damages due to fraud.

Hence, with a surety bond in place, motor vehicle dealers can give consumers peace of mind and pledge to act in good faith. Surety bonds allow third party bonding companies to review the dealership’s financial information and endorse them as a financially stable establishment. In the event the business takes a harmful turn during the monetary transaction between customer and dealership, the bonding company can take steps to resolve the situation for the customer.

Obtain Motor Vehicle Dealer Bonds

Colonial Surety specializes in motor vehicle bonds. Since these bonds are required in the state of Arizona, a separate original bond must be obtained for every application and county where the licensee has set up their business. The bond can be canceled only upon 60 days of written notice bestowed by the bonding company to the Arizona Dealer Licensing Unit. The amount of each surety bond will depend on the type of dealer applying for the motor vehicle dealer license. However, our motor vehicle dealer bonds are reasonably priced and simple to obtain. The premium is based on the amount of the bond required by the applicable government agency. Colonial allows you to obtain your bond instantly online. Contact us today to receive your auto dealer bond.