Applying for a New Dealer License

A New Motor Vehicle Dealer is a person who buys, sells, exchanges, or offers or attempts to negotiate a sale or exchange of any interest in, or who is engaged in the business of selling, new motor vehicles or used motor vehicles taken in trade on new motor vehicles or used vehicles purchased for resale.

A Used Motor Vehicle Dealer is a person, other than a new motor vehicle dealer, who buys, sells auctions, exchanges or offers or attempts to negotiate a sale or exchange of any interest in, or who is engaged in the business of selling, seven or more used motor vehicles in a continuous 12 month period.

Note: Used motor vehicle dealer does not include a wholesale motor vehicle auction dealer or public consignment auction 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 your dealer license
• Owners must be legal residents of Arizona
• You must title all vehicles in the name of the wholesale license business name before transferring title

An Arizona Wholesale Motor Vehicle Dealer can sell vehicles to dealers in other countries, but the dealer is responsible to ensure the buyer is an actual licensed dealer in the country of license and must keep proper records as required by law.

An Automotive Recycler is someone who buys vehicles for the purpose of dismantling and selling the parts and accessories.

A Wholesale Motor Vehicle Auction Dealer is a person who is in the business of providing auction services solely in wholesale transactions to motor vehicle dealers licensed by the state of any other jurisdiction, and who neither buys, sells nor owns the motor vehicles he or she auctions in the ordinary course of business.

You can act as a clearing house for the sale of vehicles to licensed dealers.

A Public Consignment Auction Dealer is a person who at the public consignment auction dealer’s established place of business or at an authorized off-premises location pursuant to the requirements of A.R.S. 28-4401 in the business of both of the following:

• Conducting live auctions with a licensed auctioneer verbally calling for and accepting bids
• Providing live auction services to the public on a consignment contract basis

You can sell on Consignment only, and only at public live auction. You cannot acquire vehicles from a licensed wholesale motor vehicle dealer.

A Broker is a person who for a fee, commission or other valuable consideration offers to provide, provides, or represents that the person will provide a service of arranging or assisting in effecting the purchase of a motor vehicle and who is not:

• A new motor vehicle dealer or an employee or agent of a new motor vehicle dealer
• A used motor vehicle dealer or an employee or agent of a used motor vehicle dealer
• A manufacturer or employee or agent of a manufacturer
• An auctioneer or engaged in the auto auction business
• A wholesale motor vehicle dealer

A Manufacturer is any person who manufacturers or assembles new motor vehicles or who manufacturers or installs on previously assembled truck chassis special bodies or equipment which when installed form an integral part of the new motor vehicle and which constitute a major manufacturing alteration, but does not include the installation of a camper on a pickup truck.

A Distributor is a person who sells or distributes new motor vehicles to motor vehicle dealers in this state or who maintains distributor representatives in this state.