Any person or business intending to sell 5 or more motor vehicles in a 12-month period, including new (franchise) dealers, used dealers, wholesalers, and auto auctions. Required when: Application for or renewal of a motor vehicle dealer license. Exemptions: Persons selling fewer than 5 vehicles in a 12-month period.
Overview
What it is.
Any person or business intending to sell 5 or more motor vehicles in a 12-month period, including new (franchise) dealers, used dealers, wholesalers, and auto auctions. Required when: Application for or renewal of a motor vehicle dealer license. Exemptions: Persons selling fewer than 5 vehicles in a 12-month period.
Who usually needs it
Any person or business intending to sell 5 or more motor vehicles in a 12-month period, including new (franchise) dealers, used dealers, wholesalers, and auto auctions.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateARBond amount$50,000 for new motor vehicle dealers (auto, truck, RV); $25,000 for new motorc…Term lengthContinuousObligeeArkansas Motor Vehicle Commission (for New Dealers) and Arkansas State Police (for Used Dealers)RenewalThe bond remains in effect until canceled. Renewal typically involves paying an annual premium to the surety company. A 30-day written notice is required for cancellation.Bond classLicense BondCategoryMotor VehicleBondMotor Vehicle Dealer BondStatutory referenceArkansas Code Annotated § 23-112-302 and § 23-112-607JurisdictionState
