Arkansas Motor Vehicle Dealer Bond

An Arkansas Motor Vehicle Dealer Bond is a type of surety bond required by the Arkansas Motor Vehicle Commission (AMVC).for individuals applying for a license to sell vehicles in Arkansas. There are two types depending on the dealership:

• Franchise Dealer Bond: This is a $50,000 bond mandated for dealerships selling new vehicles under a manufacturer’s franchise agreement. The Arkansas Motor Vehicle Commission (AMVC) is the responsible agency for this type of bond.
• Used Motor Vehicle Dealer Bond: This is a $25,000 bond required for dealerships selling primarily used vehicles. The Arkansas Department of State Police handles the licensing and bonding process for used car dealerships.

The cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get an Arkansas Motor Vehicle Dealer Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Arkansas Motor Vehicle Dealer Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Licensing a Used Car Dealership in Arkansas

Here’s a breakdown of the steps involved in obtaining a used car dealer license in Arkansas:

1. Business Registration:
   • Register your business: Establish your dealership as a business entity (sole proprietorship, LLC, etc.) with the Arkansas Secretary of State.
   • Tax ID: Obtain an Employer Identification Number (EIN) from the IRS if your business is a corporation or LLC.
   • Sales Tax Permit: Acquire a sales tax permit from the Arkansas Department of Finance and Administration (DFA) .

2. Secure a Dealership Location:
   • Physical Location: Find a permanent place of business that complies with local zoning regulations for operating a car dealership.

3. Obtain Financial Instruments:
   • Dealer Surety Bond: Purchase a $25,000 Arkansas Used Motor Vehicle Dealer Surety Bond from Surety1.com.
   • Garage Liability Insurance: Secure garage liability insurance to cover your vehicle inventory.

4. Application and Fees:
   • Application Form: Request and complete the Used Motor Vehicle Dealer License Application from the Arkansas State Police .
   • Supporting Documents: Compile required documents including:
     • Proof of business registration.
     • Completed application for dealer plates (optional).
     • Photos of all dealership owners/partners/officers.
     • Proof of your dealership location (lease agreement, etc.).

• • Fees: Pay the application fee ($250) and any other associated fees.

5. Dealership Inspection:
   • Inspection: After submitting your application, an Arkansas State Police inspector will contact you to schedule an inspection of your dealership location. This ensures your business meets licensing requirements.

Additional Resources:

• Arkansas Motor Vehicle Commission (AMVC) [Arkansas Motor Vehicle Commission]: While they handle franchise dealer licenses, their website offers general information on dealer licensing.
• Arkansas State Police Regulatory Services Division [Arkansas State Police Regulatory Services Division]: This is the primary point of contact for used car dealer licensing.

Remember: This is a general overview. It’s recommended to consult the Arkansas State Police Regulatory Services Division for the latest information and any specific requirements that may apply to your situation.
^{The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.}