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.Arkansas Motor Vehicle Dealer Bond

How to Get an Arkansas Motor Vehicle Dealer Bond

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

  1. Complete the easy to navigate and secure online application1
  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. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, 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) .
  1. Secure a Dealership Location:
    • Physical Location: Find a permanent place of business that complies with local zoning regulations for operating a car dealership.
  1. Obtain Financial Instruments:
    • Dealer Surety Bond: Purchase a $25,000 Arkansas Used Motor Vehicle Dealer Surety Bond from
    • Garage Liability Insurance: Secure garage liability insurance to cover your vehicle inventory.
  1. Application and Fees:
    • Fees: Pay the application fee ($250) and any other associated fees.
  1. 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.

Motor Vehicle Dealer Surety Bonds

How to Get Your Arkansas Motor Vehicle Dealer Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

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Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

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