Opening your own car dealership is an exciting adventure, mostly because there are so many stipulations involved. Your local Motor Vehicle Division (MVD) or third-party office is the best source of information, as the forms and guidelines are not available online. You can also call (602) 712-7571 and ask for the Dealer Licensing Unit if you have questions.

The following covers some of the most common issues that arise from those entering the business for the first time.

Purchasing an Existing Auto Dealership

If you are purchasing an existing dealership, you will need to submit a Buy/Sell Agreement when you apply for your license. The agreement must be signed by all parties involved, including all partners, officers, and owners of 20% or more of the corporation.

Dealers Selling New Products

If you will be selling new cars, you must submit a Certificate of Appointment signed by an authorized agent of the manufacturer, distributor, or importer licensed to conduct business in Arizona. When you submit the certificate, it must contain the name of the appointed dealership, the address where the vehicles will be sold, and the make of each vehicle.

Dealership Location and Signage

Your car dealership must be a permanent, enclosed building that you own or lease. It must have enough space to display two or more vehicles. Further, it must be devoted principally to the business of selling automobiles. If you are selling or recycling used vehicles, you may use a trailer as an office.

Your dealership sign must be legible from 300 feet during daytime. The sign must be permanent and not painted on glass.

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