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Dealer License by State
Arkansas used dealer license overview
Unofficial summary – verify with state regulator

Arkansas Used Vehicle Dealer License Requirements – 2025 Overview

Arkansas requires a used motor vehicle dealer license if you regularly sell used vehicles for profit. This page summarizes common requirements for used and wholesale dealers regulated by the Arkansas State Police.

Important: This is a general summary. Always confirm forms, fees, and rules on the official state website before you apply.

1. Who licenses used vehicle dealers in Arkansas?

In Arkansas, most used and wholesale motor vehicle dealers are licensed by the Arkansas State Police through the Used Motor Vehicle Dealer Section.

2. Common dealer license types

For used vehicles, the most common licenses are:

  • Used Motor Vehicle Dealer – sells used vehicles to the public.
  • Wholesale Motor Vehicle Dealer – sells only to other licensed dealers.

3. Education, background checks, and key personal requirements

  • Applicants must complete the state Used Motor Vehicle Dealer application form issued by Arkansas State Police.
  • Owners, partners, and certain managers may be subject to background checks and disclosure of prior license history.
  • Arkansas may require criminal history checks and verification that the applicant has not had a recent license revocation.

4. Business location, office, and sign

Your dealership must meet the definition of an established place of business under Arkansas law, which typically includes:

  • A physical business location in Arkansas; P.O. boxes alone are not sufficient.
  • A dedicated office where records can be stored and business conducted.
  • An appropriate display lot for vehicles offered for sale.
  • A permanent sign showing the dealership name, visible from the roadway.
  • Compliance with local zoning and occupancy rules; zoning approval is often requested in the application.

5. Business entity, bond, and insurance

5.1 Business entity and registrations

  • Form your business entity (sole proprietor, LLC, corporation, etc.) and register it with the Arkansas Secretary of State as applicable.
  • Obtain a federal FEIN and any Arkansas tax registrations required for sales and use tax.

5.2 Surety bond

  • Most Arkansas used motor vehicle dealers must file a surety bond. Common guidance indicates a minimum bond of about $25,000 for used dealers; verify the current amount with Arkansas State Police.

5.3 Insurance

  • Maintain garage liability or commercial liability insurance that meets state minimums and any lender or landlord requirements.

6. High-level application steps

  1. Form your business entity and obtain FEIN and state tax registrations.
  2. Secure a compliant location, sign, and zoning/occupancy approvals.
  3. Obtain your Arkansas used motor vehicle dealer surety bond and required insurance.
  4. Complete the Arkansas State Police Used Motor Vehicle Dealer License Application and any supplemental forms.
  5. Submit photos, zoning letters, bond/insurance evidence, and fees to the Used Motor Vehicle Dealer Section.
  6. Respond to any follow-up questions and schedule inspections if required.

7. After you are licensed: ongoing compliance

  • Renew your dealer license, bond, and insurance before they expire.
  • Maintain your business location, office, and sign in accordance with Arkansas law.
  • Keep complete records of vehicle purchases, sales, titles, and odometer disclosures.
  • Comply with Arkansas and federal rules covering advertising, disclosures, and consumer protection.