New Motor Vehicle Dealer
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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At a glance
Arkansas Auto Dealer Bond Key Facts
The basics
What Is an Auto Dealer Bond in Arkansas?
An Arkansas auto dealer bond (also called a motor vehicle dealer bond) is a surety bond you must file to get a motor vehicle dealer license in Arkansas. It is a promise that you will follow Arkansas motor vehicle laws, and it protects your customers and the state if you break them. Arkansas requires the bond for both new and used dealers, but the amount and the agency you file with depend on your license type.
Good to know - Arkansas requires a surety bond for both new and used motor vehicle dealers, but the amount and the licensing authority depend on your license type. New motor vehicle dealers and lessors file a $50,000 bond with the Arkansas Motor Vehicle Commission. Used motor vehicle dealers file a $25,000 bond with the Arkansas State Police — or a single $100,000 bond covering multiple used-dealer locations.
If you sell or lease new motor vehicles, you are licensed by the Arkansas Motor Vehicle Commission and must file a $50,000 bond. If you sell used motor vehicles, you are licensed by the Arkansas State Police and must file a $25,000 bond. A used dealer with more than one location can file one $100,000 bond to cover all of them instead of a separate bond for each.
The bond does not protect you. It protects a buyer or the state if you commit a violation, such as failing to deliver a clear title. If the surety company has to pay a valid claim, you must pay that money back.
You do not pay the full bond amount. You buy the bond by paying a premium, which is a small percentage of the bond amount and is set by underwriting.
Qualification
What You Need to Qualify for a Arkansas Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You have identified your license type — new motor vehicle dealer or lessor (Arkansas Motor Vehicle Commission) versus used motor vehicle dealer (Arkansas State Police).
- You know the bond amount for your license type: $50,000 for new dealers and lessors, or $25,000 for used dealers ($100,000 to cover multiple used-dealer locations on one bond).
- You have a registered Arkansas business and an established place of business that meets the state facility requirements for your license type.
- You have your completed state dealer license application for the correct agency.
- You have owner and principal details ready for underwriting — the surety reviews credit and dealer experience to set your premium.
Step by step
How to Get an Auto Dealer Bond in Arkansas: Step by Step
Confirm your dealer license type
Decide which Arkansas license you need. New motor vehicle dealers and lessors are licensed by the Arkansas Motor Vehicle Commission and need a $50,000 bond. Used motor vehicle dealers are licensed by the Arkansas State Police and need a $25,000 bond ($100,000 to cover multiple used-dealer locations). Your license type sets your bond amount and which agency you file with.
Set up your business and place of business
Register your Arkansas business and set up an established place of business that meets the state facility requirements for your license type. Gather your business records, owner identification, and any local approvals you will submit with your application.
Complete your state dealer license application
Download and complete the dealer license application for your agency. New dealers and lessors use the Arkansas Motor Vehicle Commission application packet; used dealers use the Arkansas State Police used motor vehicle dealer application. Fill it out in full and gather the documents it lists.
Initial Auto Dealer Application Packet (new dealers and lessors)Buy your auto dealer bond and we issue and file it for you
Buy the bond amount for your license type — $50,000 for new dealers and lessors, or $25,000 ($100,000 multi-location) for used dealers. Market Canopy issues the bond on the official Arkansas bond form approved for your license type and provides the executed bond so it can be filed with your application. You do not download, complete, or sign the bond form yourself.
Submit your application and pay the state fees
File your completed application with your issued bond and supporting documents at the correct agency, and pay the state license fee. The used motor vehicle dealer license fee is $250 per year; new dealer and lessor fees are set by the Arkansas Motor Vehicle Commission. These state fees are separate from your bond premium.
Paperwork
Arkansas Dealer Bond Forms & Documents
Arkansas Motor Vehicle Commission application for a new motor vehicle dealer or lessor license. Complete and submit this to the Commission.
View formArkansas State Police application for a used motor vehicle dealer license. Complete and submit this to the Arkansas State Police.
View formThe official Arkansas bond form ($50,000 new dealer / $25,000 used dealer). We issue this bond for you on the correct form and provide the executed copy to file — you do not complete it yourself. Link shown for reference (used motor vehicle dealer bond form).
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Cost
How Arkansas Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Your cost is the premium — a percentage of the bond required for your license type ($50,000 for new dealers and lessors, $25,000 for used dealers, or $100,000 for multiple used-dealer locations).
Your premium depends on the bond amount and on underwriting factors such as your credit and dealer experience. Use the quote flow on this page for your price. State license fees and any local fees are separate from the bond premium.
Worked example
On a $25,000 used motor vehicle dealer bond, a dealer who qualifies at a low single-digit rate might pay a premium of a few hundred dollars for the term — not the full $25,000. A new motor vehicle dealer’s $50,000 bond is priced the same way on the larger amount. This is an illustration, not a quote; your premium depends on underwriting.
Filing
Filing Information
Arkansas Motor Vehicle Commission (new dealers) and Arkansas State Police, Used Motor Vehicle Dealer Section (used dealers)
Filing notes
New motor vehicle dealers and lessors file the $50,000 bond and license application with the Arkansas Motor Vehicle Commission. Used motor vehicle dealers file the $25,000 bond and application with the Arkansas State Police.
Market Canopy issues your auto dealer bond on the official Arkansas bond form for your license type and provides the executed bond so it can be filed with your application — you do not fill out the bond form yourself.
Arkansas dealer bonds are written on a continuous form and must stay in force without a lapse while your license is active. Plan to keep the bond active through each license renewal (used dealer licenses renew in January each year).
FAQ
Arkansas Auto Dealer Bond FAQ
Yes. Arkansas requires a motor vehicle dealer surety bond for both new and used dealers. New dealers and lessors file a $50,000 bond with the Arkansas Motor Vehicle Commission; used dealers file a $25,000 bond with the Arkansas State Police.
The bond amount is $50,000 for new motor vehicle dealers and lessors and $25,000 for used motor vehicle dealers. A used dealer with multiple locations can file one $100,000 bond covering all locations instead of separate bonds. You pay only a premium, which is a percentage of that amount.
It depends on your license type. The Arkansas Motor Vehicle Commission (part of the Department of Labor and Licensing) licenses new motor vehicle dealers and lessors. The Arkansas State Police (part of the Department of Public Safety) licenses used motor vehicle dealers.
They cover different licenses. The new dealer bond is $50,000 and is filed with the Arkansas Motor Vehicle Commission. The used dealer bond is $25,000 (or $100,000 for multiple locations) and is filed with the Arkansas State Police. Both guarantee that you follow Arkansas motor vehicle laws.
No. We issue your bond on the official Arkansas bond form for your license type and give you the executed bond to file with your application. You do not download, complete, or sign the bond form yourself.
Arkansas dealer bonds are written on a continuous form and must stay in force without a lapse while your license is active. You keep the bond active through each license renewal — used motor vehicle dealer licenses renew in January each year.
The used motor vehicle dealer license fee is $250 per year, paid to the Arkansas State Police. This state fee is separate from your bond premium. New dealer and lessor license fees are set by the Arkansas Motor Vehicle Commission.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with Arkansas Motor Vehicle Commission (new dealers) and Arkansas State Police, Used Motor Vehicle Dealer Section (used dealers) before you file. This page is informational and not legal advice.
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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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
