Arkansas Auto Dealer Bond

Arkansas is one of a small number of states that splits dealer oversight between two completely separate agencies. The Arkansas State Police (ASP) UMVD Section licenses used and wholesale motor vehicle dealers under the Used Motor Vehicle Dealers Act. The Arkansas Motor Vehicle Commission (AMVC) licenses new (franchised) dealers under the Motor Vehicle Commission Act. Each agency has its own application, its own bond amount, its own fee schedule, and its own regulatory requirements. The system has been in place for decades and reflects the different consumer protection concerns for used vs. new vehicle sales.

The $25,000 bond is for used/wholesale dealers operating a single location through the Arkansas State Police. The $100,000 bond covers used/wholesale dealers licensing multiple locations (satellite dealerships) under one bond. The $50,000 bond is an entirely separate requirement for new/franchised dealers through the Motor Vehicle Commission. You cannot use one bond to satisfy the other agency -- they are different bond forms filed with different obligees.

For the $25,000 used dealer bond, expect $250-$2,500 per year (1-10% of face value). Excellent credit (750+) qualifies for $250-$500. Good credit (680-749) costs $625-$1,250. The $50,000 new dealer bond costs roughly double at each credit tier. The $100,000 multi-location bond costs proportionally more. Arkansas bonds are among the more affordable nationally due to the lower base amounts for single-location used dealers.

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 (or $100,000 for multiple locations), Certificate of Insurance naming ASP as holder with minimum $75,000 coverage, and the $250 application fee. Processing takes up to 15 business days, followed by an on-site facility inspection by a UMVD Inspector.

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. After 6 months of expiration, you may need to reapply as a new applicant with the full application process. We send bond renewal reminders 60 days before expiration to help prevent any lapse.

Yes. The $25,000 used dealer bond is one of the more affordable bonds nationally, making it accessible even with lower credit scores. We work with specialized surety carriers for higher-risk applicants, and even credit scores below 600 can typically be approved at 8-10% of the bond amount.