Arkansas Motor Vehicle Dealer Bond

1. Apply for Your Bond

We make it easy to buy an Arkansas motor vehicle dealer bond. Take a few minutes to complete our online application to begin the process. Numerous bond programs are available, and we have provided surety bonds to more than 99% of our applicants. 

We recently assisted a new auto dealership in Arkansas with their New Motor Vehicle Dealer Bond. Despite their expertise in the auto industry, navigating the bond process seemed daunting to them, and they were concerned about its impact on their business. Our simplified approach ensured they met Arkansas' requirements seamlessly, contributing to a successful launch and establishing their dealership as a trustworthy choice for auto enthusiasts across the state.

2. Get a Quote

Our surety bond company always provides quick quotes to applicants. In fact, most of our customers benefit from an immediate quote after submitting the application online. For more complex situations, we’ll provide a quote within 48 hours. 

We work with numerous bond programs. This allows us to provide applicants with competitive bond premiums.

3. Purchase Your Bond

The last step is to pay your motor vehicle dealer bond’s premium. We provide our customers with a convenient online payment option. After we receive the premium payment, we’ll email the bond to you. We can also send you the bond via mail upon request. 

With your new motor vehicle dealer bond in hand, you can finalize your license application. Simply submit your bond to the state with the other required licensing documentation. 

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.

Auto dealers that sell both new and used vehicles in Arkansas are required to be properly licensed with the state. The licensing authorities and bond requirements differ for new motor vehicle dealers and used motor vehicle dealers.

Arkansas requires a $50,000 bond for new vehicle dealerships (Auto, Truck, or RV) and $25,000 for Motorcycle, ATV, Lessor, or Scooter dealerships, with the Arkansas Motor Vehicle Commission as the obligee. Used vehicle dealers must also post a $25,000 bond, with the Arkansas State Police as the obligee.

The bond requirement for both new and used dealers is established by Arkansas Code Annotated 23-112-601.

The new and used motor vehicle dealer bonds in Arkansas run continuously, so they remain in effect until canceled. To cancel the bond, a written notice must be provided to the state authority no later than 30 days before the cancellation date. 

To avoid a license suspension, the dealer must provide a new surety bond prior to the existing bond’s expiration date. While the bond runs continuously, the surety company will collect a premium payment annually. We will notify you prior to the payment due date.

The claimant will file the claim directly with the surety bond company. The surety bond company then conducts a thorough investigation of the claim to determine if it is valid. If the claim is not validated, the surety company denies the claim.

If the claim is deemed to be valid, the surety bond company pays the claimant up to the bond’s penal sum. After the claimant is paid, the Arkansas dealer is responsible for reimbursing the surety bond company in full.

While there are some differences between the licensing documentation required for dealers selling new versus used vehicles, most are comparable. The Arkansas Motor Vehicle Commission and the Arkansas State Police are your sources for complete information about the licensing requirements in Arkansas. 

Documents required for both types of motor vehicle dealer licenses are:

• License application form
• Proof of liability insurance
• A surety bond
• A physical business location in Arkansas and photos of the business and signage
• A lockable cabinet
• A business phone number

You can get more details about getting licensed through the comprehensive Arkansas motor vehicle dealer license guide, by contacting: 

Arkansas Motor Vehicle Commission
900 W. Capitol Avenue, Suite 400
Little Rock, AR 72201

Arkansas State Police
1 State Police Plaza Drive
Little Rock, AR 72209