New Motor Vehicle Dealers in Arkansas must submit a $50,000 surety bond to the Arkansas Motor Vehicle Commission to obtain a license. The bond protects individuals from losses due to a dealer’s poor business practices and guarantees the dealer will comply with all requirements in the Arkansas Motor Vehicle Commission Act.
The following is required to become a licensed New Motor Vehicle Dealer in Arkansas:
- Completed dealer application form
- Appropriate fee
- Copy of signed franchise/dealer agreement
- Notarized surety bond for $50,000
- $25,000 bond for Motorcycle, ATV, Lessor or Scooter Dealership
- Color photographs of showroom, parts & service, office, lot & sign
- Salespersons applications – general manager, sales manager, F & I personnel, sales personnel and transfers
- Proof of liability insurance
Used Motor Vehicle Business in Arkansas must submit a $25,000 surety bond to obtain a license through the Arkansas State Police, per the Arkansas Motor Vehicle Commission Act. The bond ensures that the principal (used motor vehicle dealer) will comply with the Arkansas Motor Vehicle Commission Act and if a person suffers losses due to unethical behavior by the dealer, a claim can be made against the bond.
The following is required to become a licensed Used Motor Vehicle Dealer in Arkansas:
- Completed dealer application form
- $250 license fee
- Surety bond for $25,000
- Color photograph of business site and business sign
- List of owners and sales force
- Proof of liability insurance
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.