Both used and new/franchise auto dealers are required to be bonded in Arkansas.
Used Auto Dealers: Those who sell 5 or more used cars in a given year are required to have a $25,000 Arkansas Used Motor Vehicle Dealer bond and be licensed as an auto dealer. Used dealers with multiple locations must also acquire an additional bond ($25,000, same bond as before) for each location that they own. Alternatively, a $100,000 bond can be used to cover all locations. We recommend you only get the $100,000 bond if you have 4 or more locations.
New/Franchise Auto Dealers: New dealers are required to have a $50,000 Arkansas New Motor Vehicle Dealer Bond to operate.
Auto dealer bond requirements are a bit more complicated in Arkansas than other states. But we’ve helped many Arkansas auto dealers get bonded. Get started below with our 3 minute form to get an instant quote.
Used Auto Dealers: Our starting price for the $25,000 used motor vehicle bond is $100 for a 1 year term.
New Auto Dealers: Our starting price for the $50,000 Arkansas new motor vehicle dealer bond is $200 for a 1 year term.
The above prices are mostly determined by the applicant’s credit score. Generally speaking, a higher credit score will equate to lower prices. In some cases, a dealer’s previous work experience can result in a discount for bond prices.
The bonds listed above are sufficient to cover bonding requirements for new and used auto dealers. Beyond that, there are two additional bonds meant for wholesale dealers (those who sell to other licensed dealers) and vehicle auction businesses. Both bonds are in the amount of $25,000 and prices start at $100 for a 1 year term. We offer them as well, and you can choose them in the “Specific Bond” dropdown when going through our quote process.
Yes, but it won't hurt your credit score. When you apply for an Arkansas auto dealer bond, the insurance companies will check your credit to see if you're eligible and to decide how much it will cost. This type of credit check is called a "soft" credit check, and it doesn't harm your credit score.
Some insurance companies consider a credit score below 650 to be “poor” credit. However, this doesn’t mean you can’t get bonded! We partner with several insurance companies that specialize in providing coverage to those with less than ideal credit score. Contact us if you’re in this situation. We'll help you obtain an Arkansas auto dealer bond by shopping your application with our insurance partners. Our team has helped numerous individuals with imperfect credit secure an Arkansas Vehicle Dealer bond. It is not an issue.
Our goal is to close on the bond and send it back to you the same day. Assuming that there are no underwriting complications (e.g. very low credit score or previous violation of bond), we can usually get the bond within 1-2 hours. We're committed to working hard, even on weekends, to expedite your bonding procedure. Our phone lines are open every day from 9:30 am to 9:30 pm CST, and if we're unable to answer your call, we strive to return your call within 30 minutes.
You can minimize chances of bond claims by adhering to the auto dealer guidelines in the state of Arkansas. Most of this is just conducting business in an honest and transparent manner with the customer’s interest in mind. Concretely, this involves paying the appropriate fees and taxes related to vehicle sales and providing valid car titles to customers. By submitting your bond, you confirm that you'll fulfill all legal requirements associated with operating an auto dealer business in Arkansas.
Yes. This is officially known as a “Motor Vehicle Dealer Bond”, but this is also known colloquially as an “auto dealer bond”. Both can be used interchangeably.
