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Arkansas Used Motor Vehicle Dealer Bond

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 get licensed in Arkansas. An underwriter will review an applicant’s credit history to determine the rate they will pay. Qualified applicants could pay a rate as low 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 1 day of receiving your application.

Bond Type Bond Amount Cost*
$25,000 Used Motor Vehicle Dealer Bond $25,000 Starts at $125 Apply Now

Apply for your bond today by calling 1 (800) 308-4358 or by 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 motor dealer bonds ensure that the principal (used motor 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 unethical business, 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

For more information about used motor vehicle dealer bonds in Arkansas, contact an expert surety specialist online now.

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 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
  • $25,000 surety bond
  • proof of liability insurance for all vehicles
  • an affidavit from Arkansas State Police

Detailed licensing information can be found in the “Additional Resources” section below.

Licenses are valid for 1 year from the issuance date. Licensed used motor dealers must submit an application each year with an attached $250 license fee.

Take the first step toward getting licensed by purchasing the necessary surety bond.

Ready to get started?

Get a FREE Used Motor Vehicle Dealer Bond Quote Today!

Additional Resources

Arkansas State Police: Used Motor Vehicle Dealer License

Statutes: 23-112-607, Dealer License

State of Arkansas Surety Bond for Used Motor Vehicle Dealer, Wholesaler, or Auto Auction

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