Arkansas Motor Vehicle Dealer Surety Bond
An Arkansas motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles within the State of Arkansas. Arkansas operates a split regulatory structure: the Arkansas Motor Vehicle Commission (AMVC) regulates new (franchise) dealers, while the Arkansas State Police (ASP) regulates used and wholesale dealers. Bond amounts differ by dealer type and regulating agency. Surety One, Inc. offers quick, no-hassle underwriting for all Arkansas motor vehicle dealer bonds.
Bond Amount & Requirements
AMVC — New (Franchise) Dealer Bonds
Arkansas Code §23-112-302 requires all new motor vehicle dealer license applicants to file a surety bond with the Arkansas Motor Vehicle Commission.
| Bond Amount | License Type | Regulating Body |
|---|---|---|
| $50,000 | New Auto / Truck / RV Dealer (main location) | AMVC |
| $25,000 | New Motorcycle / ATV / Scooter / Lessor Dealer | AMVC |
| $25,000 | Each additional new dealer location | AMVC |
ASP — Used & Wholesale Dealer Bonds
Arkansas Code §23-112-607 requires all used motor vehicle dealer and wholesale dealer license applicants to file a surety bond with the Arkansas State Police.
| Bond Amount | License Type | Regulating Body |
|---|---|---|
| $25,000 | Used Motor Vehicle Dealer (per location) | Arkansas State Police |
| $25,000 | Wholesale Motor Vehicle Dealer (per location) | Arkansas State Police |
| $100,000 | Used/Wholesale Blanket Bond (all locations) | Arkansas State Police |
Important — $100,000 Blanket Bond for Used Dealers: Used and wholesale dealers with more than 4 locations may provide a single $100,000 corporate surety bond covering all locations in lieu of separate $25,000 bonds for each location. New (franchise) dealers must post a $50,000 bond for their main location plus $25,000 for each additional location. Bond proceeds are paid upon receipt by the state of a final judgment from an Arkansas court.
Who Needs This Bond?
- New (franchise) auto, truck, and RV dealers — $50,000 bond (AMVC)
- New motorcycle, ATV, scooter, and lessor dealers — $25,000 bond (AMVC)
- Used motor vehicle dealers — $25,000 bond per location (ASP)
- Wholesale motor vehicle dealers — $25,000 bond per location (ASP)
How Much Does the Bond Cost?
The cost is a small percentage of the required bond amount, determined by credit, financials, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Arkansas Dealer License Requirements
- Register business with the Arkansas Secretary of State
- Obtain an EIN from the IRS (if applicable)
- Register with the Arkansas Department of Finance and Administration (DFA) for a sales tax ID number
- Secure a business location meeting state requirements (office, display space, signage)
- Obtain the required surety bond
- Complete the applicable dealer license application packet (AMVC for new; ASP for used/wholesale)
- Attach salesperson application forms (if required)
- Applicable licensing fees
Filing, Renewal & Cancellation
Bonds expire annually and must be renewed to maintain the license. The surety may cancel the used dealer bond by filing 30 days’ prior written notice with the principal and the Arkansas State Police. Any liability that accrued while the bond was in force remains enforceable regardless of cancellation. The total liability of the surety, regardless of the number of years the bond has been in force, shall not exceed the bond amount.
Bond Claims
Bond proceeds are paid upon receipt by the State of Arkansas of a final judgment from an Arkansas court of competent jurisdiction against the principal and in favor of an aggrieved party. The bond indemnifies any person, firm, or corporation for loss sustained by acts of the dealer when those acts constitute grounds for suspension or revocation of the license.
Arkansas Motor Vehicle Commission (AMVC)
New (Franchise) Dealers
900 W. Capitol Avenue, Suite 400
Little Rock, AR 72201
Web: amvc.arkansas.gov
Arkansas State Police (ASP)
Used & Wholesale Dealers
1 State Police Plaza Drive
Little Rock, AR 72209
Web: dps.arkansas.gov
Surety One, Inc. is the Arkansas surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for both AMVC and ASP dealer bonds. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
What We Need From You
Obligee's Bond Form
