Motor Vehicle Dealers - Used Vehicles Only

The State of Arkansas Used Motor Vehicle Dealer Bond is a surety bond required by the Arkansas Motor Vehicle Commission for businesses that sell used motor vehicles. This bond ensures that licensed dealers comply with all applicable state laws, regulations, and licensing requirements governing the sale of used motor vehicles.

Used motor vehicle dealers in Arkansas must obtain this bond as part of their licensing process. The bond amount varies based on the dealer's business volume and operations, with options for $25,000 or $100,000 coverage. Dealers typically need the higher bond amount based on their sales volume or specific business activities.

This bond protects the State of Arkansas and consumers from financial losses that may result from the dealer's failure to comply with state motor vehicle laws, fraudulent practices, or other violations of their licensing agreement. If a dealer violates the terms of their license, affected parties can file claims against the bond for compensation up to the bond amount.

The bond term is one year and must be renewed annually to maintain an active dealer license. Continuous coverage is essential, as any lapse in the bond will result in suspension of the dealer's license until a new bond is secured.