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License Bond

Arizona Motor Vehicle Recycler Bond

This bond is required for businesses in Arizona that recycle, dismantle, or salvage motor vehicles and sell their parts. The state requires this $20,000 bond to protect consumers and ensure recyclers follow Arizona laws and regulations. If a recycler violates rules, fails to transfer titles properly, or engages in fra…

Overview

What it is.

This bond is required for businesses in Arizona that recycle, dismantle, or salvage motor vehicles and sell their parts. The state requires this $20,000 bond to protect consumers and ensure recyclers follow Arizona laws and regulations. If a recycler violates rules, fails to transfer titles properly, or engages in fra…

Who usually needs it

Automotive recyclers—persons, firms, or corporations who buy or acquire 6 or more motor vehicles per year to dismantle, sell, or dispose of their parts—need this bond. It is required for holders of an automotive recycler license under Arizona's motor vehicle dealer licensing framework to protect the state and public from losses due to non-payment of fees/ta…

Pricing & timing

What to expect.

Generic pricing

License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Application

What to do next.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. Keep your effective date and renewal date on file with us.
Start the application.

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Details

Bond details.

StateAZ
Bond amount$20,000
ObligeeState of Arizona
Bond classLicense Bond
CategoryMotor Vehicle
BondArizona Motor Vehicle Recycler Bond
JurisdictionState
Plain descriptionThis bond is required for businesses in Arizona that recycle, dismantle, or salvage motor vehicles and sell their parts. The state requires this $20,000 bond to protect consumers and ensure recyclers follow Arizona laws…
Who needs this bondAutomotive recyclers—persons, firms, or corporations who buy or acquire 6 or more motor vehicles per year to dismantle, sell, or dispose of their parts—need this bond. It is required for holders of an automotive recycle…
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Next step

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