How to Get a Dealer License in Arkansas
In Arkansas, dealer licensing runs through the Arkansas State Police (ASP), Used Motor Vehicle Dealer Section. To get a used car dealer license in Arkansas you'll need a registered business, a compliant location, a $25,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Arkansas auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Arkansas State Police (ASP), Used Motor Vehicle Dealer Section's current pages before you file.
- Surety bond
- $25,000
- License term
- One-year term — the license is valid for one year from the date of issuance and is renewed annually, with the bond and insurance kept current.
- Sales threshold
- Per Ark. Code § 23-112-607, an applicant must have sold at least 5 used motor vehicles during the previous calendar year — selling 5 or more for profit is the anti-curbstoning line that triggers the license requirement.
- Pre-licensing
- None — Arkansas does not require a pre-licensing education course or exam. Qualification instead rests on the bond, insurance, established premises, and passing inspection.
License types in Arkansas
| License type | What it covers |
|---|---|
| Used Motor Vehicle Dealer | Independent dealers, wholesalers, and auto auctioneers selling used vehicles for profit — licensed by the Arkansas State Police, not the DFA. |
| New (Franchised) Motor Vehicle Dealer | Dealers selling new vehicles under a manufacturer/distributor franchise — licensed by the separate Arkansas Motor Vehicle Commission (AMVC). |
| Motorcycle / Scooter / ATV Dealer | Powersports dealers, a separate AMVC license category. |
| Motor Vehicle Lessor | Vehicle-leasing businesses, licensed by the AMVC. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Used-dealer application/license fee | Varies | Confirm the current fee with the Arkansas State Police — third-party guides cite roughly $250 but that is unverified |
| Surety bond premium | Varies | Annual premium you pay is a fraction of the $25,000 face amount, based on credit — not a state fee |
| Liability insurance | Varies | Coverage required on all vehicles offered for sale (Motor Vehicle Safety Responsibility Act minimums) |
| Dealer plates / temp tags | Set by DFA | Dealer plates and temp-tag stock are obtained through the DFA Office of Motor Vehicle |
Step by step
- Confirm eligibility (intend to sell, or have sold, 5+ used vehicles per year for profit) and secure a qualifying business location.
- Establish the premises: permanent place of business, dealership sign, secure records storage, and a business phone listed in the dealership's name.
- Obtain the $25,000 surety bond (or $100,000 for multiple locations) and liability insurance on inventory.
- Complete the ASP Used Motor Vehicle Dealer License application (pulled from the live ASP website) with a photo of the business location and the required fee.
- Submit to the Arkansas State Police; an inspector schedules and completes the on-site inspection for first-time licensees.
- Receive the one-year license, then set up dealer plates, temp tags, and sales-tax collection through the DFA Office of Motor Vehicle.
Premises & temp tags
Location: A bona fide, established, permanent place of business (not a residence-only or pop-up), with signage identifying it as a used-vehicle dealership, secure storage for business records, and a business telephone listed in the dealership's name in an online directory. A photograph of the location is submitted with the application, and the site is inspected by an ASP Used Motor Vehicle Dealer inspector.
Temp tags / plates: A temporary tag is obtained at any State Revenue Office (with bill of sale and driver's license) within 10 days of purchase, and the buyer then has 60 days from the purchase date to register the vehicle. Temp-tag and dealer-plate stock is administered by the DFA Office of Motor Vehicle.
Arkansas-specific things to know
- Used dealers are licensed by the Arkansas State Police — not the DFA and not the AMVC. New/franchise dealers go to the AMVC (Dept. of Labor & Licensing), and titling/plates run through DFA. Three different agencies.
- The '5 vehicles in the previous calendar year' rule is the anti-curbstoning threshold that triggers the license requirement.
- Instead of a $25,000 bond per lot, a single $100,000 bond can cover all of a dealer's used-vehicle locations.
- The current application is available only from the Arkansas State Police website — older third-party PDF links are dead, so always pull the live form.
Official Arkansas resources
- Arkansas State Police — Used Motor Vehicle Dealer License ↗
- DFA Office of Motor Vehicle — Forms ↗
- Arkansas Motor Vehicle Commission (new/franchise dealers) ↗
Arkansas dealer license FAQ
How much does a dealer license cost in Arkansas?+
Used-dealer application/license fee: Varies; Surety bond premium: Varies; Liability insurance: Varies; Dealer plates / temp tags: Set by DFA. Plus the $25,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Arkansas?+
Arkansas requires a $25,000 surety bond. Per Ark. Code § 23-112-607, a used dealer posts a $25,000 surety bond per location, or a single $100,000 bond covering all of a dealer's used-vehicle locations. The bond is issued for a one-year term and renewed annually with the license.
Do you need a physical lot to get a dealer license in Arkansas?+
A bona fide, established, permanent place of business (not a residence-only or pop-up), with signage identifying it as a used-vehicle dealership, secure storage for business records, and a business telephone listed in the dealership's name in an online directory. A photograph of the location is submitted with the application, and the site is inspected by an ASP Used Motor Vehicle Dealer inspector.
How many cars can you sell in Arkansas without a dealer license?+
Per Ark. Code § 23-112-607, an applicant must have sold at least 5 used motor vehicles during the previous calendar year — selling 5 or more for profit is the anti-curbstoning line that triggers the license requirement.
How long is a Arkansas dealer license valid?+
One-year term — the license is valid for one year from the date of issuance and is renewed annually, with the bond and insurance kept current.
Is dealer training or an exam required in Arkansas?+
None — Arkansas does not require a pre-licensing education course or exam. Qualification instead rests on the bond, insurance, established premises, and passing inspection.
How do temporary tags work for Arkansas dealers?+
A temporary tag is obtained at any State Revenue Office (with bill of sale and driver's license) within 10 days of purchase, and the buyer then has 60 days from the purchase date to register the vehicle. Temp-tag and dealer-plate stock is administered by the DFA Office of Motor Vehicle.
Data verified 2026-07-17. Requirements change — confirm with the Arkansas State Police (ASP), Used Motor Vehicle Dealer Section before filing.
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