How Much Does an Arkansas Used Motor Vehicle Dealer Bond Cost?
$25,000 Arkansas used motor vehicle dealer bond costs start at $125 for the 1-year term. Your exact premium will be provided after a quick application underwriting review. Apply now to get your free quote!
If you are a licensed new motor vehicle dealer establishing a branch location specifically for used car sales, the $25,000 surety bond costs a flat rate of $125. Buy online now.
How Do I Get Used Motor Vehicle Dealer Bond?
You can apply for your Arkansas auto dealer bond online 24/7 through our safe and secure application portal. You must provide the following information for Arkansas State Police approval.
- Dealership name
- Dealership physical location
- County
- Dealer license number, if available
Once your payment is received, your official Arkansas auto dealer bond documents will be delivered to your email.
If you have any questions about Arkansas auto dealer bonds or your application, call 1 (800) 308-4358 to speak with one of our friendly surety experts.
What Is an Arkansas Used Motor Vehicle Dealer Bond?
Arkansas Code § 23-112-607 requires individuals who sell 5 or more used vehicles annually to file a $25,000 surety bond for dealer license business registration. The state-required bond form is officially titled the "State of Arkansas Surety Bond Used Motor Vehicle Dealer, Wholesaler, or Auto Auction." The state enforces this surety bond requirement to prohibit acts and set penalties for violations committed by dealers and dealerships who fail to comply with regulations as outlined in Arkansas code.
There is an additional bond requirement and form for new auto dealers in Arkansas as well as new dealers who are adding a branch location for used car sales.
How Fast Can I Get My Bond?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your official Arkansas auto dealer bond faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed auto dealer bond delivery.
Why Do Arkansas Auto Dealers Need to Be Bonded?
Arkansas code established this license bond requirement to protect consumers from dealers or dealerships who commit the following acts:
- Fraud
- Improper impositions
- Unfair practices that hinder fair and honest business competition
If a licensed dealer or dealership commits a prohibited act, harmed parties can file a claim against the bond. The surety company will pay valid claims up to the full $25,000 bond amount. The bond form language specifically requires a final judgment from an Arkansas court be provided in favor of an aggrieved party before claims will be paid.
Who Regulates Licensing for Car Dealers in Arkansas?
The Arkansas State Police enforces licensing requirements for used vehicle dealers. If you have questions about Arkansas dealer license application requirements, call the Used Motor Vehicle Dealer Section at 1 (501) 618-8600.
Used car dealer bonds are required for dealerships that sell used vehicles. If you sell new vehicles, the state enforces a separate $50,000 Arkansas new motor vehicle dealer license bond requirement.
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 Can I Update My Bond Form?
If the Arkansas State Police requires you update your bond form for any reason, contact your surety company. If you purchased your bond from SuretyBonds.com, email [email protected] and explain the needed change.
The most common changes for this bond includes:
- Dealership name
- Dealership address
- County
How Do I Renew My Car Dealer Bond?
Your used vehicle dealer bond must be renewed before its current term expires to keep your license active with the state. Once you pay your SuretyBonds.com renewal invoice, you'll receive emailed instructions for your Arkansas auto dealer bond renewal.
How Do I Get a Used Motor Vehicle Dealer License in Arkansas?
You'll have to submit the following information with your Arkansas used motor vehicle dealer license application:
- Physical business location with pictures
- Dealership name and signage with pictures
- Dealership phone number
- Verification you have at least one lockable file cabinet
- $25,000 surety bond for each location
- Garage liability insurance
- $250 application fee
Find step-by-step instructions How To Get An Arkansas Used Motor Vehicle Dealer License in our comprehensive guide.
