The licensing process for selling used motor vehicles in Arkansas is fairly simple. This guide will walk you through every step. You’ll obtain your license through the Arkansas State Police. The license permits you to sell used vehicles only. To find more about obtaining a new motor vehicle license, you can contact the Arkansas Motor Vehicle Commission. This guide provides information only about used motor vehicle dealer licensing.
Determine Which Type of Auto Dealer License You Need:
- Retailer: Sell new or used vehicles to the public
- Wholesaler: Buy/sell vehicles at auto auctions
- Rebuilder: Make vehicle repairs to the extent that the car may need a new vehicle identification number (VIN)
- Reconditioner: Refurbish or repair damaged vehicles for resale with the same VIN
Contact Local Zoning Authorities
If you are opening a new dealership, you should contact the zoning or ordinance section of the city or county where your business is located. This is necessary due to recent changes in the zoning and ordinance laws regarding the operation of motor vehicle facilities.
Obtain Your Auto Dealer Bond
The cost of an auto dealer bond is a small percentage of the total bond amount. The bond cost varies depending on your financial strength, e.g. personal credit. You can also take a look at our most frequently asked surety bond questions.
- Fill out our online application form to obtain a free bond quote for your auto dealer license. It takes 5 minutes and you will be able to lock your rate for the next 90 days (in case you want to purchase the bond).
All used vehicle auto dealers must purchase a bond to get licensed.
Bond Amount Required: $25,000
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Obtain Proof of Liability Insurance
When sending your application, you must also send proof of liability insurance coverage on all vehicles that will be offered for sale.
Take Photos of Your Business Site and Business Sign
You must include pictures of the business location when sending your application.
Note: You will be required to show proof of an existing filing cabinet or other repository to secure business records under lock and key (or combination of the above).
You must also take pictures of the sign identifying the business as a used motor vehicle dealership. The sign must be clearly legible from the street or highway.
Compile the Required Documents
There are additional documents you must prepare and send in with your application:
- A list of people with ownership interest in the used car dealership
- A list of potential salespeople
- The name, address, and phone number of the person in charge of receiving legal disputes against the applicant
Submit Your Dealer License Application
All dealers will need to fill out the used dealer license application form. To obtain the full application, contact the Arkansas State Police (501-618-8617) and ask for the Regulatory Services Division.
Applicants should also fill out either the Initial Application (for new dealers such as yourself) or the Renewal Application form. Both documents (along with other supporting forms) are available at the Arkansas Motor Vehicle Commission website. You can also get additional information and help at 501-682-1428.
License Fee: $250.00 (plus an extra $125.00 per additional site)
Mail your application, fee, surety bond and other supporting documentation to:
Arkansas State Police Attn: Used Motor Vehicles #1 State Police Plaza Dr. Little Rock, AR 72209
Pass Your Business Location Inspection
If you are approved, you will receive your used car dealer license by mail. Then an inspector will contact you to set up a place of business inspection appointment. The Arkansas State Police will need to verify your location, signage, filing system, documentation process and telephone listing.