Arizona Aircraft Dealer Bond

To buy, sell, broker, or exchange airplanes and other aircraft in the state of Arizona, you need an Aircraft Dealer's License from the Arizona Department of Transportation (ADOT). One of the main prerequisites of this license is a $10,000 Arizona Aircraft Dealer Bond.

An Arizona Aircraft Dealer Bond ensures an aircraft dealer conducts business lawfully and ethically. If they fail to do so, the affected person, company, or organization can make a claim against the bond to get reimbursed for losses caused by the dealer's misconduct.

Bond claims may be made against a dealer if they don't pay outstanding taxes and fees, are unfaithful to sales contracts, or otherwise don't operate in accordance with the Arizona Revised Statutes, Title 28, Chapter 25, Article 5.

Every Arizona Aircraft Dealer Bond is a contract between three parties:

1. Principal – the aircraft seller that needs to get licensed.
2. Obligee – the organization asking the principal to get bonded (ADOT).
3. Surety – the company that issues the bond (ex. Lance Surety Bonds). They will initially pay for any bond claims, up to the full amount of the bond ($10,000). However, the principal must then pay them back in full.

This surety bond is not in place to protect the aircraft dealer—it protects customers and others conducting business with the dealer.

An aircraft dealer bond holds a dealer financially responsible for their actions. It ensures that if a dealer's actions cause financial harm, there is a way for the affected party to get reimbursed.

While the surety company that issued the bond initially pays for bond claims, the dealer must then pay them back. This financial obligation helps mitigate risk and fraud among aircraft dealers, protecting the public.

An Arizona Aircraft Dealer Bond costs as little as $100. While the full bond amount (penal sum) required is $10,000, you only pay a small percentage of that to get bonded (typically 1% - 3% if you have good credit).

A surety bond's cost is known as a bond rate or bond premium. Your bond rate varies based on your credit score, business experience, and financials. However, as the AZ Aircraft Dealer Bond is considered a smaller bond, we offer instant bond quotes based on a soft credit check (this check will not affect your credit score).

Get a Free Bond Quote

1. Apply for Your Aircraft Dealer Bond

Fill out an online bond application or call us at 877-514-5146. Information you will need includes:

• Bond Name (Arizona Aircraft Dealer Bond)
• Bond Amount ($10,000)
• Contact Information

Note that this bond must be issued by a surety company licensed to do business in Arizona. Lance Surety Bonds is licensed in all US states.

2. Receive Your Free Bond Quote

An email with your free bond quote will arrive in your inbox. This generally only takes a few minutes after you submit your application. Don't forget to check your Junk Mail.

3. Get Your Surety Bond

Follow the instructions in the email to pay for your bond online. You will receive an electronic bond copy as soon as payment clears. We will mail the original. This bond must be on file with ADOT before your Aircraft Dealer License application is approved. The address to send the application and bond to is:

Arizona Department of Transportation
Motor Vehicle Division
Aircraft Registration Unit, Mail Drop 542M
PO Box 2100
Phoenix, AZ 85001-2100

We can send your Aircraft Dealer Bond to the department for you. Or we can mail it to you, and you can forward it yourself.

Bond renewal and cancellation are done directly through the surety agency that issued your bond.

Renewal: An Arizona aircraft dealer bond needs to be renewed annually. We contact all bondholders 1 - 2 months before renewal with instructions on how to pay the annual bond premium.

Cancellation: You can cancel your bond at any time. However, your surety company must provide ADOT with a written notice 60 days before the cancellation date.

At Lance Surety Bonds, you never have to handle bond claims alone. We have bond claim specialists on staff who will investigate your bond claim, answer questions, and guide you through the process. This helps ensure that you aren't paying for invalid claims and are informed every step of the way.

If your bond claim is valid, we will pay initially and then set up a plan with you for repayment.

Valid Aircraft Dealer Bond claims include:

• Failing to pay outstanding taxes and fees.
• Being unfaithful to a sales contract or agreement.
• Conducting business in any way forbidden by the Arizona Revised Statutes, Title 28, Chapter 25, Article 5.

How long does the bonding process take?

We can get most applicants an Arizona Aircraft Dealer Bond in as little as an hour or so. The fastest way to get this bond is to fill out our online bond application. This application method is free, available 24/7, and generates an instant bond quote.

Thomas waited the day before sending in his Aircraft Dealer License application to get bonded. He contacted us initially at 2 pm and was fully bonded before 3 pm. While we don't suggest waiting until the last minute to get your surety bond, we frequently get our clients bonded in under 24 hours.

How long does the bond remain valid?

An Arizona aircraft dealer bond is continuous until canceled but needs to be renewed annually. At the time of renewal, you will need to pay your annual bond rate to keep your bond active.

Note that you can avoid the hassle of annual renewal by opting for a monthly payment plan or a multi-term bond.

Can I obtain a bond with bad credit?

Yes, you can get an aircraft dealer bond with bad credit. At Lance Surety Bonds, we consistently get applicants with poor credit the bond they need.

Are there penalties for operating without an Aircraft Dealer Bond?

Yes, there are penalties for operating without an Aircraft Dealer Bond in Arizona. As you need an active bond on file to keep your Arizona Aircraft Dealer's license valid, not being bonded nulls your license.

Any person found acting as an aircraft dealer without this license is guilty of a class 6 felony.

Aircraft Dealer License Application. (n.d.). In Department of Transportation. Retrieved April 15, 2025, from
https://azdot.gov/mvd-doc-lib/aircraft-dealer-license-application

Arizona Aircraft Dealer Surety Bond Form. (n.d.). Retrieved April 15, 2025, from
https://apps.azdot.gov/files/mvd/mvd-forms-lib/05-0504.pdf

Arizona Revised Statutes. (n.d.). In www.azleg.gov. Retrieved April 15, 2025, from
https://www.azleg.gov/arsDetail/?title=28

How Much Does a Surety Bond Cost in 2025? (n.d.). In Lance Surety Bonds. Retrieved April 15, 2025, from
https://www.lancesuretybonds.com/learn/surety-bond-cost