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How much does a $25,000 used car dealer bond cost in Arkansas?
Auto dealers who sell used vehicles must post a surety bond before they can be licensed in Arkansas. An underwriter will review an applicant’s credit history to determine the rate he or she will pay. Qualified applicants could pay a rate as little as $125.
Give us a call at 1 (800) 308-4358, or submit a bond request to connect with a surety expert today. We can typically provide you with a free bond quote within one day of receiving your application.
Apply for your bond today by calling 1 (800) 308-4358 or submitting a bond request. One of our friendly surety experts will work with you to fulfill your bonding requirements.
Why do I need this bond?
Arkansas used auto dealer bonds ensure that the principal (the used motor vehicle dealer) will faithfully comply with all of the provisions of the Arkansas Motor Vehicle Commissions Act. If a person suffers losses due to a dealer conducting business in an unethical manner, a claim can be made against the bond. Violations of the Arkansas Motor Vehicle Commissions Act include, but are not limited to:
- defrauding buyers
- failing to honor written agreements with retail buyers
- advertising vehicles from a location not listed on the license
- neglecting or falsifying to deliver or endorse a certificate of title
- knowingly selling a stolen motor vehicle
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.
What’s the fine print?
Used motor vehicle dealer bonds are required by the State of Arkansas and are continuous until canceled. The aggregate liability of the surety must not exceed the total bond amount. To cancel this bond, the surety must file a written cancellation notice with the Arkansas State Police 30 days prior to the cancellation date.
How to become a used motor vehicle dealer in Arkansas
All persons wanting to open a used vehicle dealership in Arkansas must submit a completed license application to the Arkansas Department of State Police. The following information must be sent along with your application:
- a photograph of the business location
- a $25,000 surety bond
- proof of liability insurance for all vehicles
- an affidavit from the Arkansas State Police
Steps to become a used auto dealer in Arkansas:
- Contact the Arkansas Zoning authorities for a review of the zoning and ordinance laws as they pertain to your business location.
- Obtain your used motor vehicle dealer bond ($25,000 bond amount required).
- Provide proof of of liability insurance.
- Include pictures of your business location when submitting your application.
- Make sure you have the following information available: the name, address, and phone number of the person in charge of receiving legal disputes against the applicant, a list of the people with ownership interest in the used car dealership, a list of potential salespeople
- Fill out the Arkansas application form.
Licenses are valid for one year from the issuance date. Licensed used motor dealers must submit an application each year with an attached $250 license fee.