Looking to sell used motor vehicles in the state of Arkansas? According to Arkansas State Law, you must obtain an Arkansas Used Car Dealer License before you can start selling vehicles. Arkansas used dealer licenses are issued by the Arkansas State Police.
If you are engaged in any of the following, you must get an Arkansas Dealer License:
- Selling 5 or more used motor vehicles in one calendar year
- Involved in the business of selling, buying, or displaying for sale used motor vehicles
- Conducting the buying, selling, displaying for sale, and dealing of used motor vehicles
Not sure if you need a dealer license? Check out this post on selling cars without a license.
How to get an Arkansas Used Car Dealer License
*This post is for getting licensed to sell USED vehicles. To get licensed to sell NEW vehicles, view the Arkansas New Motor Vehicle License Application (issued by the Arkansas Motor Vehicle Commission)*
Step #1: Complete Arkansas Used Car Dealer License Application
Complete an Arkansas Used Car Dealer License Application.
Note: There have been significant zoning and ordinance changes enacted throughout the State that relate to the operation of used motor vehicle facilities. Contact the local authorities when applying for a new Arkansas Dealer License.
Step #2: Purchase an Arkansas Motor Vehicle Dealer Bond
An Arkansas Motor Vehicle Dealer Bond is a requirement before you can get your license.
An AR Motor Vehicle Dealer Bond is a type of surety bond that protects your customers from fraud or misrepresentation during a business sale. If your clients feel you are not running an ethical business, they can make a claim against your bond.
- Arkansas has set the bond amount at $25,000
- You will pay anywhere between 1-15% of the total bond amount ($250 – $3,750)
- This is a one-time payment, not a monthly payment
The best way to see what you’d pay for your Arkansas Motor Vehicle Dealer Bond is to get a free quote:
Step #3: Mail Application + Bond + $250 Fee
Arkansas State Police, Attn: Used Motor Vehicles
#1 State Police Plaza Drive
Little Rock, AR 72209
Step #4: Wait for Little Rock to Process Application
Little Rock will process your Arkansas Dealer License Application.
- If you are missing information in your paperwork, Little Rock will give you time to make corrections.
- If you are approved, you will be mailed an Arkansas Used Motor Vehicle License and an inspector will contact you to set up a time to do an inspection of your location.
Arkansas Dealer License Expiration and Renewal
Arkansas Car Dealer Licenses are valid for one year from the date they are issued.
If you do not renew your license by your license expiration date, you will be charged a $35 late fee upon renewal. A license that is not renewed within 6 months of its expiration date is considered permanently expired.