How much does an Arizona bonded title cost?
The cost of your Arizona bonded title will depend on the amount of the surety bond you need to obtain. The amount of your bond will be determined by the Motor Vehicle Division (MVD) at the Arizona Department of Transportation (DoT) when you apply for your bonded title. Typically, the bond amount is equal to 1 ½ times the appraised value of the vehicle that you need a new title for.
The vehicle’s value is determined by the MVD, or an authorized third-party office, when they perform an inspection. The vehicle inspection is the first step of your Arizona bonded title application process. When your vehicle passes inspection, you will be notified of the additional steps you need to take to obtain a new title, as well as of the bond amount. To get bonded, you’ll pay a small percentage of the total bond amount.
The exact percentage or cost of your bond is determined by the surety you apply with for your bond. If, for example, your bond amount has been set at $40,000 and you get a 1% quote by your surety, obtaining your Arizona title bond will cost you $400.
Sureties issue bond quotes based on their assessment of the financial stability of an applicant. This includes their personal credit score, financial statements and other financial factors. The surety uses these factors to determine the likelihood of an applicant defaulting on a claim if one should be made against the bond. The higher an applicant’s credit score, the lower their surety bond rate usually is. A high credit score is considered one of 700 FICO or above, and is typically offered a rate between 1% and 3% of the total title bond amount.
Want to learn more about how sureties determine bond rates? Check out our detailed surety bond cost guide.
Options for applicants with bad credit
A bad credit score does not mean you can’t get bonded. Through our Bad Credit Program you can get bonded just as easily as everyone else.
Our program enables you to obtain a title bond in order to transfer ownership of a vehicle or receive a new title. The only difference between a bond under this program and one with a high credit score are the slightly higher rates that low-credit applicants have to pay. Rates are determined on a case-by-case basis, but applicants under this program can typically expect to get a rate on their bond that is between 3% and 10% of their bond amount.
What’s the purpose of the Arizona title bond?
The title bond is a guarantee that protects the public and the DoT when issuing new titles. It is issued when a person has, for example, lost their vehicle’s title or didn’t get one when purchasing the vehicle from its previous owner and wants to obtain a new one. The bond guarantees that if it turns out that the car has been stolen and the applicant is not the rightful owner, the DoT will not be held responsible to compensate claimants.
This means that the Arizona title bond is an agreement between the Arizona DoT, the car owner who wants to have a new title issued or to transfer ownership of a vehicle, and the surety bond company issuing the title bond.
If the owner is found to be in breach of the surety bond agreement by previous or future owners or by the DoT, a claim can be made against their bond, and the surety bond company will cover the claim. Under the surety bond agreement, the owner will then have to reimburse the surety for its compensation.
Common reasons for a surety bond claim against an AZ bonded title include:
- If a future or previous owner of the vehicle experiences damages, losses, or expenses as a result of the issuance of the new title
- If the applicant for a title has not disclosed defects or security interests upon the right, title and their interest in and to the vehicle
How can you apply for your Arizona bonded title?
To complete the application process for your Arizona bonded title, you need to go through the following steps:
Visit a local MVD or authorized third-party to have your vehicle inspected. This step is necessary to confirm your vehicle has not been stolen or tampered with. At the end of the inspection you will be given a list with actions and requirements to fulfill before you can obtain a new title. A ‘Bonded Title Affidavit’ will also be provided by the MVD.
You will be required to obtain and submit as much as possible information concerning your vehicle as you have available. The list issued by the MVD will specify particular documents that you should provide. Contact the seller or previous owner if you have little or no information about your vehicle.
Once you have all the documents ready you can complete the application. This includes the title affidavit, as well as certified letters which you must send to previous owners and all other persons who may have any relation to the sale of the vehicle. You will be briefed about these letters in detail after your vehicle has been inspected (See 1.)
Once you have all of the above ready and in order, you can return to the MVD and let them have a look to confirm that your application and supporting documents meet the requirements. If a surety bond amount was not specified after the inspection of the vehicle, you will be notified of the necessary amount at this point.
You can then proceed with obtaining your surety bond from the surety bond agency of your choice which meets state and government requirements.
Once you have your Arizona title bond, you can submit your application and supporting documents to the MVD and have your Arizona bonded title issued.
Contact the Arizona MVD to receive further information, or instructions concerning the process of obtaining a new title bond.
Call us 866.450.3412 to speak to our surety experts if you need more information regarding the Arizona title bond and how to get yours. We look forward to hearing from you!