How Much Does a New Auto Dealer Bond Cost in Arkansas?
New motor vehicle dealers must post a $50,000 surety bond to become licensed. The premium you’ll pay for your bond is subject to underwriting, which means that the cost of your bond is based on your credit report. Qualified applicants can pay as little as $250. Apply now for your free quote with no added fees.
If you already have a new auto dealership and are opening a specific branch location for used vehicle sales, you can buy the state-required $25,0000 bond for a flat premium of $125 instantly online.
How Does a Motor Vehicle Dealer Bond Work?
New vehicle dealer bonds protect individuals who experience financial loss due to a dealer’s poor business practices. These bonds also ensure that the principal faithfully complies with all requirements stated in the A.C.A. Section 23-112-101. Violations under this Act include, but are not limited to:
- Practicing fraud or misstating information on a license application
- Failing to comply with any rules promulgated by the Commission
- Failing to maintain license qualifications
- Assisting an unlicensed person in a motor vehicle sale
- Altering a certificate of title
For more information on new vehicle dealer bonds or used vehicle dealer branch location bonds in Arkansas, contact an expert surety specialist online now. Our team will walk you through our simple bond process step-by-step.
Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, an Arkansas certificate of title bond is required.
If you plan to lease motorcycles, ATVs, or other small vehicles, visit our Arkansas New Motorcycle, ATV, Scooter, Utility Vehicle or Lessor Bond page.
What's the Fine Print?
These bonds will remain in full effect unless otherwise canceled. If the bond is to be canceled, the surety must file a written cancellation notice with the Arkansas Motor Vehicle Commission 30 days prior to the termination date.
How to Become a Licensed New Motor Vehicle Dealer in Arkansas
New vehicle dealers must submit the following materials with their license application:
- Copy of a signed dealer agreement
- Notarized initial affidavit
- $50,000 surety bond
- Proof of liability coverage
- Color photos of lot & sign, showroom, and parts & services
- Contact information sheet
- General and sales manager, sales personnel and F&I personnel license
- $100 application fee
New motor vehicle dealer licenses expire December 31. Find more information linked below.
More Resources
- Arkansas New Motorcycle, ATV, Scooter, Utility Vehicle or Lessor Bond
- Arkansas Used Motor Vehicle Dealer Bond
- Arkansas State Police Used Motor Vehicle Dealer License
- Arkansas Motor Vehicle Commission
- Arkansas Motor Vehicle Commission Forms & Publications
- Arkansas Motor Vehicle Commission 2014 Initial Application
- Arkansas Motor Vehicle Commission AMVC Laws & Rules
- Arkansas Motor Vehicle Commission 2014 Renewal Application
- Subchapter 3 License and Regulation