Motor Vehicle Dealers - New or New and Used Vehicles
Required for new motor vehicle dealers in Arkansas to obtain and maintain their dealer license. Protects consumers and the state from fraudulent business practices.
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About This Bond
The New Motor Vehicle Dealer bond is a surety bond required by the State of Arkansas for businesses that sell new motor vehicles or both new and used vehicles. This bond is mandatory for obtaining and maintaining a motor vehicle dealer license in Arkansas.
New motor vehicle dealerships, including those that sell both new and used vehicles, must secure this bond as part of their licensing requirements. The bond ensures compliance with state regulations governing motor vehicle sales and dealer operations.
This surety bond protects consumers and the State of Arkansas from financial losses resulting from fraudulent or unethical business practices by the dealer. It provides recourse for customers who suffer damages due to the dealer's failure to comply with Arkansas motor vehicle laws and regulations.
The bond amount is set at $50,000 and has a one-year term. As a renewable bond, dealers must maintain continuous coverage by renewing annually to keep their license in good standing with the state.
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FAQ
Arkansas Auto Dealer Bond Questions
The cost of a Arkansas auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Arkansas auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Arkansas license instructions.
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