Thinking about selling vehicles in Arkansas? You’ll be required to post an auto dealer bond as part of getting licensed. State law mandates dealers to file a bond with the appropriate agency to help ensure ethical business practices and protect consumers from financial harm. For used motor vehicle dealers, this means filing a $25,000 bond with the Arkansas State Police, as outlined in Arkansas Code § 23-112-607. Dealers operating multiple locations may choose to post a single $100,000 bond instead of individual bonds for each lot.
Franchise (new) motor vehicle dealers are regulated by the Arkansas Motor Vehicle Commission, which requires a $50,000 surety bond under Arkansas Code § 23-112-302. New motorcycle dealers, all-terrain vehicle dealers, low-speed vehicle dealers, and motor vehicle lessors are instead required to file a $25,000 bond. Franchise dealers operating from more than one location must also file a separate $25,000 bond for each branch license, on top of the primary $50,000 bond.
Both the used dealer bond and the franchise dealer bond are continuous — they remain in effect until the surety files a 30-day written cancellation notice with the appropriate state agency, even though premiums are typically billed annually. The bond must be issued by a surety authorized in Arkansas and serves as a safeguard for the public and the state, guaranteeing that licensed dealers operate ethically and comply with the law.
Arkansas Auto Dealer Bond at a Glance
- Purpose: Safeguards buyers and the state against losses from a dealer’s failure to follow the law.
- Who Needs It: Most Arkansas motor vehicle dealers (new/franchise, used, motorcycle/ATV, low-speed vehicle dealers, and vehicle lessors).
- Regulating Authorities:
- Arkansas State Police - primarily for used motor vehicle dealers.
- Arkansas Motor Vehicle Commission (AMVC) - for franchise (new) motor vehicle dealers.
- Bond Amounts:
- $25,000 for used motor vehicle dealers (filed with the Arkansas State Police).
- $50,000 for franchise (new) motor vehicle dealers (regulated by AMVC).
- $25,000 for motorcycle, ATV, low-speed vehicle dealers, and motor vehicle lessors.
- Optional coverage for multiple lots: A single $100,000 bond may be posted in lieu of separate bonds for each used-dealer location.
- Premium Rate: Many qualified applicants pay starting around 1% of the bond amount.
Bryant Surety Bonds is licensed in Arkansas (#3000575922) to issue both used and new dealer bonds. Our secure online application makes it easy to get approved quickly and receive your bond within hours. Simply complete our application form to receive a free, no-obligation quote the same day.
How Much Does an Arkansas Auto Dealer Bond Cost?
Surety bonds are not paid in full. Instead, you pay a percentage of the total bond amount, known as the premium. This means the cost of an Arkansas auto dealer bond is only a fraction of the required coverage. You will never have to pay the full bond amount up front.
Premium rates typically range between 1% and 3% for applicants with good credit. Your exact rate will depend on factors such as credit history, financial stability, and dealership experience. Even if your credit isn’t perfect, Bryant Surety Bonds offers affordable options through our Bad Credit Program, so every dealer can get bonded and stay compliant.
Here’s a breakdown of the bond amounts required by Arkansas law for each license type, along with the typical starting premiums you can expect to pay.
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| New/Franchise Dealer Bond | $50,000 | Starts at $500 |
| Motorcycle, ATV, Low-Speed Vehicle Dealer, or Lessor Bond | $25,000 | Starts at $250 |
| Used Car Dealer, Wholesaler, or Auto Auction Bond | $25,000 | Starts at $250 |
| Multi-location Used Car Dealer Bond | $100,000 | Starts at $1,000 |
To see your exact premium, use our free bond cost calculator below.
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Get a free exact quote Get another estimateHow to Get an Arkansas Auto Dealer Bond
Obtaining an Arkansas car dealer bond is easier than many applicants expect. The process is straightforward, and with the right guidance, you can meet all state requirements quickly while avoiding delays that could hold up your license.
Bryant Surety Bonds helps you every step of the way, from selecting the correct bond type to ensuring your paperwork is complete and compliant.
Follow these simple steps to get bonded:
- Fill out our online application – Provide your business information, license type, and bond amount.
- Get your quote – We’ll calculate a competitive, no-obligation premium based on your profile and send it to you the same day.
- Secure your bond – Approve the quote and pay your premium, and the official document is issued immediately.
Getting bonded is often faster and simpler than obtaining your dealer license itself. No matter what type of Arkansas dealership you operate, our team ensures the process is seamless, allowing you to focus on opening your doors and running your business confidently and legally.
How to Get an Arkansas Auto Dealer License
Securing an Arkansas dealer license requires careful preparation beyond just applying. Your dealership must meet state standards, including proper zoning, clearly visible signage, adequate office space, and a suitable display lot.
You’ll also need liability insurance that meets state minimum requirements, along with supporting documents such as business registration certificates, a list of people with ownership interests, potential salespeople, and photos of your dealership.
Finally, your business will need to pass a location inspection conducted by state inspectors, who will ensure that your dealership complies with Arkansas regulations before approving your license.
Once the fees are paid and your application is approved, your license will be issued and must be renewed annually. Being fully prepared with all documents ensures a smooth process and keeps your business in compliance with the law.
For a complete breakdown of all requirements, visit our comprehensive step-by-step guide on how to get an Arkansas auto dealer license.
Arkansas Auto Dealer Bond Renewal
Arkansas auto dealer bonds are continuous — they remain in effect until either the surety files a 30-day written cancellation notice with the appropriate state agency (Arkansas State Police for used dealers, AMVC for franchise dealers). You don’t need to file a new bond every year. The same bond stays on record with the state, and your surety simply collects the premium each year (or in multi-year terms, often at a discount). If your bond lapses or is canceled, your dealer license can be suspended, so it’s important to keep your premium current and notify your surety promptly of any changes to your business name, ownership, or address.
At Bryant Surety Bonds, we make the process fast and hassle-free. Our fully online renewal system, combined with expert support from surety specialists and automatic reminders before your bond expires, ensures your dealership remains fully compliant without interruption.
FAQs
What happens if a claim is made against my bond?
If a claim is filed, Bryant Surety Bonds will guide you through each step of the process. When a claim is found to be valid, the surety will pay damages up to the bond amount on behalf of the dealer to protect the consumer or the state. As the dealer, you are ultimately responsible for reimbursing the surety for any payments made. Unresolved claims can impact your ability to maintain or renew your bond in the future.
How long does it take for a bond claim to be resolved?
Resolution times vary depending on the claim’s complexity, the documentation provided, and the responsiveness of all parties involved. Simple claims are often resolved within a few weeks, while more complicated disputes may take several months. Staying organized by maintaining detailed sales records, invoices, and contracts for all vehicle transactions can help speed up the process.
Can my bond premium change mid-term?
Typically, the premium remains fixed for the bond’s one-year term. However, significant changes to your business, such as adding new locations or expanding sales volume, may require adjustments or a bond amendment. Always consult your surety if your business changes.
Can a bond be issued for multiple owners or partners?
Yes, the surety bond can list multiple owners or partners, but all must be disclosed during the application process. The surety may evaluate each individual’s financial background and creditworthiness. Accurate reporting helps prevent delays or claim disputes.
Can a bond be issued for a new dealership that has not yet opened?
Yes, a bond can be issued for a new dealership as long as the location, office setup, and signage meet state requirements. The surety will also review the owners’ backgrounds and credit to determine eligibility. This allows the dealer to secure the bond before opening.
How long does it take to get an Arkansas auto dealer bond?
Most applicants receive a quote within one business day, and the bond can typically be issued within 24 hours of approval and payment. Applicants with strong credit often qualify for instant approval. Once issued, you’ll receive a digital copy by email, and the original signed bond is shipped to you for filing with the Arkansas State Police or the AMVC.
Will applying for an Arkansas auto dealer bond affect my credit score?
No. Surety companies use a soft credit pull to evaluate your application, which does not impact your credit score and is not visible to lenders. The check is used solely to determine your bond premium rate. You can request a free quote without any effect on your credit.
Can I get an Arkansas auto dealer bond with bad credit?
Yes. Through our Bad Credit Surety Bond Program, applicants with low credit scores, prior bankruptcies, or other financial challenges can still get bonded. Rates for higher-risk applicants typically range from 5% to 10% of the bond amount. We work with multiple surety partners to find the most competitive rate available for your situation.
Additional Resources
- Motor Vehicle Commission - Forms & Application Links
- Arkansas State Police Used Motor Vehicle Dealer Licensing Rules
- Arkansas State Police Used Motor Vehicle Dealers Service and Handling Fees Rules
