How to get a used car dealer license in Arkansas

This guide is informational and does not replace official Arkansas requirements. Always verify with Arkansas State Police — Used Motor Vehicle Dealer Section before applying.

Step-by-step process

1. 1

   Set up the place of business

   Arkansas requires a bona fide established place of business used primarily for selling used vehicles. Put up a sign that identifies it as a used motor vehicle dealership and can be read from the street. Get a phone number listed in the business name and a locking filing cabinet for your records. Take photos of the location and the sign — the application asks for both.

2. 2

   Get the $25,000 bond and liability insurance

   Buy a $25,000 corporate surety bond on a bond form approved by the state. It runs in the name of the State of Arkansas or any aggrieved party and covers retail buyers' losses and reasonable attorney's fees from a dealer's violations. If you'll license several locations, one $100,000 bond can cover all of them instead of separate bonds. You also need proof of liability insurance on every vehicle you offer for sale, at least at the state's Motor Vehicle Safety Responsibility Act minimums.

3. 3

   Create an account and apply online

   ASP takes applications through its online licensing portal. First-time applicants create a business account from the Primary Dealer License Application link on ASP's page, using an email address and a phone that can receive text messages for sign-in codes. Then complete the application: ownership, salespeople, bond, insurance, photos, and your agent for legal process. The application is made under oath, and a material misstatement is grounds to deny it.

4. 4

   Pay the $250 license fee

   The license certificate is $250 a year for each dealer, and $125 for each additional location. ASP waives the initial application fee if you receive Medicaid, SNAP, WIC, TANF, or Lifeline assistance, were approved for unemployment in the last 12 months, or earn no more than 200% of the federal poverty guidelines. Military members, veterans, and qualifying spouses can ask for expedited licensing.

5. 5

   Pass the facility inspection

   Before ASP issues or renews a license, an ASP officer or designee must inspect the facility within the prior 30 days and sign an affidavit that it complies. Once the license issues, display the certificate where customers can see it, and put your licensed name on all your signs.

6. 6

   Order dealer plates from DFA

   Dealer plates come from the Department of Finance and Administration, not ASP, and only licensed dealers qualify. DFA's dealer plate rule (Rule 2005-7, as amended) sets a $100 master plate and $25 for each extra plate, with extra plates tied to named managers and salespeople. Confirm current plate fees with your DFA revenue office.

Can you get an Arkansas dealer license without a lot?

Arkansas doesn't have a lot-free license type. The statute requires a bona fide established place of business used primarily for selling used vehicles, with a street-legible sign, a listed phone, and a locking file cabinet, and an officer has to inspect it. Since wholesalers are dealers under the same definition, there's no separate wholesale-only path with lighter rules.

The sections we read don't set a minimum lot size or square footage. They do say you can't sell, offer, or advertise vehicles from anywhere other than your licensed location, with three exceptions: a state trade association promotion or exhibit, a special sale permit, or an auto auction. If you move, you have 15 days to tell ASP in writing. A move ASP finds out about on its own draws a fine equal to the license fee.

Buy-here-pay-here and in-house financing in Arkansas

The ASP statute we read doesn't create a separate financing license for dealers, and ASP's pages don't mention one. That doesn't make every contract term fair game. Arkansas sets its interest-rate ceiling in the state constitution (Article 19, Section 13, as amended by Amendment 89), and state law caps the interest parties can agree to at that limit (Ark. Code Ann. 4-57-104, as amended by Act 1124 of 2013). Have an Arkansas attorney review your contract and rate before you write the first note.

The dealer statute does regulate spot delivery. If you hand over a car before the financing is final, you must give the buyer a signed "delivery prior to sale" agreement in at least 12-point type. Until financing is approved and the contract is signed, you can't cash the down payment or sell the trade-in. If the deal falls through, you return both, and the buyer has 48 hours to bring the car back (Ark. Code Ann. 23-112-613).

If you carry notes, DealerVLO tracks buy-here-pay-here accounts with a payment schedule and a collections panel. It doesn't lend money, pull credit, or handle any ASP or DFA filing. The contract terms and the legal review are on you.

Why Arkansas dealer applications stall

ASP doesn't publish a processing time. The statute and rules point to the usual trouble spots:

• No inspection affidavit dated within 30 days before the license would issue
• A bond that isn't a $25,000 corporate surety bond on a state-approved form
• No proof of liability insurance on the vehicles you'll offer for sale
• Missing photos of the location or the sign, or a sign that can't be read from the street
• No phone listed in the business name, or no locking records cabinet
• An incomplete owner or salesperson list, or no agent for legal process
• A material misstatement on the sworn application, which is grounds for denial
• Missed emails from the licensing portal — ASP tells applicants to check their spam folders

The Arkansas auto dealer bond: $25,000

Arkansas requires every used-vehicle dealer to post a $25,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.

You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1–5% (estimate) of the bond's face value. Your actual premium depends on personal credit and business history.

Each applicant needs a $25,000 corporate surety bond on a state-approved form (Ark. Code Ann. 23-112-607). A dealer with several locations can file a single $100,000 bond covering all of them instead. The bond indemnifies retail buyers for losses and reasonable attorney's fees caused by the dealer's violations, and pays out after an Arkansas court judgment. The surety's liability tops out at $25,000. The bond and insurance must stay in force the whole time you're licensed, or ASP summarily suspends the license. The premium range is a market estimate, not a state figure.

Common questions