Getting a used car dealer license in Arkansas

In Arkansas, used-car dealers are licensed by Arkansas State Police, Used Motor Vehicle Dealer Section.

Before your first retail sale you’ll need a $25,000 surety bond and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked · details re-checked against official sources

At a glance

License
Used Motor Vehicle Dealer License dps.arkansas.gov (source, opens in a new tab)
Issued by
Arkansas State Police, Used Motor Vehicle Dealer Section dps.arkansas.gov (source, opens in a new tab)
Surety bond
$25,000 corporate surety bond, on a bond form approved by the state. If you license several locations, one $100,000 bond can cover them. media.ark.org (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Official fees
License certificate $250 a year, for January 1 to December 31; each additional location $125. A license expired 31 days to 6 months needs a $35 late fee, and one not renewed within 6 months expires permanently. media.ark.org (source, opens in a new tab)
Renewal
Legacy agency statute: calendar-year license, renewal during January, $250/year; $35 late after 31 days, reapply after six months expired. media.ark.org (source, opens in a new tab)
Site inspection
Yes. A State Police officer or designee inspects the facility within 30 days before the license is issued or renewed; after ten years at the same facility, every other year. media.ark.org (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    The Arkansas State Police's Used Motor Vehicle Dealer Section issues the license to anyone who intends to run a used motor vehicle dealer business. dps.arkansas.gov › used-motor-vehicle-dealer-license (source, opens in a new tab)

  2. Set up the place of business

    You need a bona fide established place of business used mainly for selling used vehicles, a phone number listed in the business's name, a sign legible from the street that identifies it as a used car dealership, and a filing cabinet that locks to keep the business records. Keep the records of every vehicle transaction for three years. media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab)

  3. Get the bond and insurance

    Get a $25,000 corporate surety bond on the state-approved form; one $100,000 bond can cover several locations. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. You also need proof of liability insurance on every vehicle you offer for sale. media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab) dps.arkansas.gov › used-motor-vehicle-dealer-license (source, opens in a new tab)

  4. Apply online

    Create an account and submit the Primary Dealer License Application through the State Police licensing system. Include a photo of the location and the sign, the bond, proof of insurance, a list of owners and salespeople, and the person designated to receive legal process. dps.arkansas.gov › used-motor-vehicle-dealer-license (source, opens in a new tab) media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab)

  5. Pass the facility inspection

    A State Police officer or designee inspects the facility within 30 days before the license is issued. media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab)

  6. Get licensed, then keep it current

    Don't trade before the license is issued. It's $250 a year for January 1 to December 31, plus $125 for each additional location; renew in January. A $35 late fee applies after 31 days, and after six months the license expires permanently. The facility is inspected again before each renewal, every other year once you've been at the same place for ten years. dps.arkansas.gov › used-motor-vehicle-dealer-license (source, opens in a new tab) media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab)

The location

Display lot
A bona fide established place of business used primarily for the sale of used motor vehicles. media.ark.org (source, opens in a new tab)
Office
A telephone number listed in the name of the business, and a filing cabinet or other repository that secures the business records under lock and key or combination. Records of each vehicle transaction are kept for three years. media.ark.org (source, opens in a new tab)
Sign
A sign identifying the business as a used motor vehicle dealership, legible from the street, road or highway; a picture of it goes with the application. media.ark.org (source, opens in a new tab)

Before you apply

With the application: a photograph of the business location, the $25,000 bond, proof of liability insurance on every vehicle offered for sale, a list of owners and of salespersons, and the person designated to receive legal process. media.ark.org (source, opens in a new tab)

Forms

Primary Dealer License Application, filed online through the State Police licensing system, with the surety bond on the state-approved form. dps.arkansas.gov (source, opens in a new tab)

Get the current versions from dps.arkansas.gov; we don’t host copies.

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: making the physical location inspection-ready even if the sales model is online.

Questions

How much does an Arkansas dealer license cost?

$250 a year, plus $125 for each additional location. The bond premium, insurance and the site cost more. media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab) dps.arkansas.gov › used-motor-vehicle-dealer-license (source, opens in a new tab)

Can I sell cars online without a lot in Arkansas?

No. The license requires a bona fide established place of business used mainly for selling used vehicles, with a sign, a listed phone and a locked records cabinet. media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab)

Is there an inspection?

Yes. A State Police officer or designee inspects the facility within 30 days before the license is issued, and again before renewals. media.ark.org › UMVD-Statute-8-24-2023-1-11-2024.pdf (source, opens in a new tab)

Sources

Not affiliated with the Arkansas DFA. Not legal advice. Requirements change; always confirm with the state.