Arkansas Auto Dealer Bond$25,000 Used | $50,000 New Dealers

Arkansas used dealer bonds ($25,000) cost $250-$2,500 annually depending on credit. Excellent credit (750+) qualifies for $250-$500 (1-2%). Good credit (680-749) costs $625-$1,250 (2.5-5%). For new (franchised) dealers requiring a $50,000 bond, rates double accordingly. Multi-location used dealers needing the $100,000 bond will pay proportionally more.

Arkansas uniquely splits dealer oversight between two agencies. Used and wholesale motor vehicle dealers are licensed by the Arkansas State Police (ASP) UMVD Section under the Used Motor Vehicle Dealers Act. New (franchised) motor vehicle dealers are licensed by the Arkansas Motor Vehicle Commission (AMVC) under the Motor Vehicle Commission Act. Each has its own application, fees, bond amount, and regulatory requirements.

Used and wholesale dealers applying for a single location need a $25,000 surety bond. If you want to license multiple locations (satellite dealerships), you must obtain a $100,000 bond instead. This multi-location bond covers all your locations under one bond. New (franchised) dealers through the Motor Vehicle Commission require a separate $50,000 bond regardless of location count.

Submit your application to the Arkansas State Police, UMVD Section, #1 State Police Plaza Drive, Little Rock, AR 72209. First-time applicants must create an account online before submitting. Include your $25,000 surety bond, Certificate of Insurance naming ASP as holder (minimum $75,000 coverage), and the $250 application fee. Processing takes up to 15 business days, followed by an on-site facility inspection.

Arkansas requires liability insurance on all vehicles offered for sale with a minimum coverage of $75,000 per the Motor Vehicle Safety Responsibility Act. The Certificate of Insurance must specifically name the Arkansas State Police as the certificate holder. This is separate from your surety bond — the insurance covers vehicle damage and liability, while the bond guarantees compliance with dealer laws.

If your license has been expired for 31 days or more but less than 6 months, you must pay a $35 late fee in addition to the renewal fee before your application will be accepted. After 6 months, you may need to reapply as a new applicant. We send bond renewal reminders 60 days before expiration to help you avoid any lapse in licensing.

Yes, we offer Arkansas dealer bonds for all credit situations. The $25,000 used dealer bond is one of the more affordable bonds nationally, making it accessible even with lower credit. We work with multiple surety carriers that specialize in higher-risk applicants, and even credit scores below 600 can often be approved.

The Arkansas Motor Vehicle Commission (AMVC) regulates franchised (new) motor vehicle dealers. The AMVC requires a $50,000 surety bond conditioned on compliance with the Motor Vehicle Commission Act. This is a separate licensing process from the Arkansas State Police used dealer license, with different application forms, fees, and regulatory oversight.