Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
- Required by: Arkansas Department of State Police
- Minimum Bond Amount: $25,000
- Maximum Bond Amount: Varies
- Valid: Continuous – Renewable
Since this bond is continuous, it is in full force and effect until cancelled. If it is cancelled, a written notice of cancellation must be submitted to the Arkansas State Police 30 days before the cancellation date.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
This bond guarantees the principal will abide by all Arkansas state laws and regulations outlined in the Arkansas Motor Vehicle Commissions Act.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
- Surety bond
- Proof of liability insurance
- Arkansas State Police affidavit
- Business location
- Licensing application
- Supporting application documents (listed on official page)
- $250 license fee
All licensing fees are required by the obligee, not the surety company.
For additional licensing information, visit Arkansas’ official page: AR Used Motor Vehicle Dealer License