What Are Arkansas Motor Vehicle Dealer Bonds?

Arkansas motor vehicle dealer bonds are a type of commercial bond required by the Arkansas Motor Vehicle Commission and Arkansas State Police. 

If you sell new or used vehicles in Arkansas you must purchase a surety bond to ensure ethical business practice according to the Arkansas Code Section 23-112-101. 

Who Does An Arkansas Motor Vehicle Dealer Bond Protect?

Arkansas motor vehicle dealer bonds protect consumers from financial loss if a dealer breaks state regulations. License violations include, but are not limited to, the following:

• Fraudulent license application information
• Misrepresentation of vehicle condition
• Failure to deliver a valid title/alteration of a certificate of title
• Failure to maintain license qualifications
• Sale of a motor vehicle to an unlicensed person

How Much Do Arkansas Motor Vehicle Dealer Bonds Cost?

Arkansas used vehicle dealer bond premiums are credit-based and start at $125. New vehicle dealer bond premiums start at $250. Select the bond you need and get your quote today!

How Do Arkansas Motor Vehicle Dealer Bonds Work?

By purchasing a motor vehicle dealer bond, you enter a legal contract between three parties:

1. Principal: You, the motor vehicle dealer purchasing the bond
2. Obligee: The Arkansas Motor Vehicle Commission or Arkansas State Police
3. Surety: The company providing the bond

The purpose of an auto dealer bond is to guarantee you will follow state licensing regulations. It also gives customers a means of recourse for financial losses if you violate the bond terms.

How to Get an Arkansas Dealership Bond?

At SuretyBonds.com, we provide the quickest and easiest bonding process. To get an Arkansas motor vehicle dealer bond, complete the following steps:

1. Apply to get a free quote within one business day
2. Checkout online or over phone 
3. Receive your bond documentation*
4. Sign and submit the bond form to your obligee

*Note: Your obligee will dictate whether you need the original, physical bond form or a digital copy from the surety.

Do I Need a Separate Bond for Each Arkansas Dealership Location?

Yes, the state requires a separate $25,000 surety bond for each dealership business location. However, if you have more than 4 branches, you can provide a $100,000 corporate surety bond to cover all used dealership locations.

How Do I Get a Used Motor Vehicle Dealer License?

To apply for a used motor vehicle dealer license in Arkansas, complete the following steps:

1. Meet business registration requirements
2. Purchase a $25,000 surety bond
3. Purchase at least $75,000 in liability insurance
4. Complete the application through Arkansas.gov
5. Pay the license fee ($250 for primary location, $150 for satellites) 

If you wish to complete a physical application you can find it here and drop off or mail it to:

Arkansas State Police

Attn: Used Motor Vehicles

#1 State Police Plaza Drive

Little Rock, AR 72209

For more information, contact the Arkansas State Police or view step-by-step instructions on how to get licensed in our comprehensive guide.

How Do I Get a New Motor Vehicle Dealer License?

To apply for a new motor vehicle dealer license in Arkansas, complete the following steps:

1. Meet business registration requirements
2. Purchase a $50,000 surety bond
3. Meet insurance coverage requirements
4. Complete the application through Arkansas.gov
5. Pay license fee(s)

For more information, contact the Arkansas Motor Vehicle Commission.

How Do I Renew My Dealer Bond?

Arkansas vehicle dealership bonds expire annually. A SuretyBonds.com representative will contact you during the renewal period to discuss next steps. 

If you have any questions, refer to our Surety Bond Renewal Guide or call 1 (800) 308-4358 to speak with a team member.