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All state guides Arkansas dealer license

How to get a used car dealer license in Arkansas

You apply to the Arkansas State Police through its online licensing portal for a Used Motor Vehicle Dealer License. The defining items are a $25,000 surety bond, a $250 yearly fee, and a State Police inspection of your place of business within 30 days before the license is issued.

  • Sourced to Arkansas State Police
  • Checked October 2026
  • Free
License
Used Motor Vehicle Dealer License
Surety bond
$25,000
State fee
$250 per year
Pre-license course
None required
Background check
Owner list and license history
License term
1 year, January 1 to December 31
What the state asks for

Arkansas dealer license requirements

The figures a first-time used car dealer needs before applying to Arkansas State Police. Each row shows how well it is supported.

Surety bond
$25,000Official source

A corporate surety bond on a state-approved form. If you license several locations, a single $100,000 bond can cover all of them in place of a separate bond for each one.

State license fee
$250 per yearOfficial source

The license certificate fee for each dealer. Every additional location is $125. The initial fee is waived for applicants on certain assistance programs or with income up to 200% of the federal poverty guideline.

Pre-license education
None requiredOfficial source

The used dealer statute and the State Police licensing rules list what an applicant must provide. Neither includes a pre-licensing course or an exam.

Background check
Owner list and license historyOfficial source

You list everyone with an ownership interest and say whether you have ever held a dealer license or had one suspended or revoked. The statute and rules do not call for fingerprints.

Insurance
State minimum liabilityOfficial source

Proof of liability coverage on every vehicle you will offer for sale, at or above the minimum in the Arkansas Motor Vehicle Safety Responsibility Act. It must stay in force while you hold the license.

Business location
Established lot, sign, phone, filesOfficial source

An established place of business used primarily to sell used vehicles, with a sign readable from the road, a phone listed in the business name and locking records storage. State Police inspect it first.

License term and renewal
1 year, January 1 to December 31Official source

Licenses run by calendar year and renew in January. A license expired 31 days to under 6 months carries a $35 late fee. After 6 months it is permanently expired and you must reapply.

Sales allowed without a license
Fewer than 5 per calendar yearOfficial source

Selling or trying to sell five or more used vehicles in a calendar year creates a presumption that you are in the business. Selling a vehicle titled in your name and used only as your personal vehicle is excluded.

Processing time
Not publishedConfirm with the agency

Arkansas State Police do not publish a processing time. The facility inspection must take place within 30 days before the license is issued.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Arkansas State Police, Used Motor Vehicle Dealers Section

License you apply for

Used Motor Vehicle Dealer License

Official licensing page

Ask how the five-sale rule applies to you

Arkansas law says an applicant or a renewing dealer must show at least five used vehicle sales in the previous calendar year. That is clear for renewals. The State Police site does not explain how it applies to a first-time applicant, so ask before you file. The statute copy the State Police post is dated 2023, so also confirm the $250 fee and $25,000 bond in the portal.
Step by step

How to get a Arkansas dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Form the business and settle the location

    Register the business as needed and get an EIN. Check with your city or county that vehicle sales are allowed at the site before you sign a lease. The address you put on the application becomes your licensed location, and moving later means a written notice to the State Police.

    Licensed location

  2. Set up the lot, sign, phone and records storage

    The law requires an established place of business used primarily for selling used vehicles, a sign readable from the road that shows your dealer name, a telephone number listed in the business name, and a locking cabinet for records. Photograph the location and the sign for the application.

    A.C.A. 23-112-607(c)

  3. Get the $25,000 bond and liability insurance

    Buy a $25,000 corporate surety bond on the state-approved form. With several locations you can file one $100,000 bond that covers all of them. Get liability coverage on every vehicle you will offer for sale, at or above the state minimum. Both must stay in force for as long as you hold the license.

    $25,000 corporate surety bond

  4. Create a portal account and file the application

    First-time applicants create a business account in the State Police online licensing portal, then complete the Primary Dealer License Application. You list everyone with an ownership interest, your salespeople, any earlier dealer license and the person who will accept legal papers for the business. The State Police tutorial says to use Chrome or Safari.

    Primary Dealer License Application

  5. Pay $250 or ask for the fee waiver

    The license certificate costs $250 a year, and each additional location is $125. The initial fee is waived if you receive Medicaid, SNAP, WIC, TANF or Lifeline assistance, were approved for unemployment in the past 12 months, or have income no higher than 200% of the federal poverty guideline.

    $250 per year

  6. Pass the facility inspection

    A State Police officer or designee inspects the facility and signs an affidavit that it meets the requirements. The inspection has to fall within 30 days before the license is issued, so have the sign up, the phone working and the records cabinet in place before the visit.

    Within 30 days before issuance

  7. Display the license and get dealer plates

    Post the license certificate in a conspicuous place at the dealership. Only dealers licensed by the State Police qualify for used dealer plates, which come from the Department of Finance and Administration. Printed ads must carry your dealer name or "AR DLR" with your license number.

    Plates from DFA

Practical advice

Treat the license, dealer plates and title work as separate tracks: the State Police issue the license, and the Department of Finance and Administration handles plates. Do not pay for a pre-licensing course because an old third-party guide says so. Arkansas law lists none. Have the site fully set up before you apply, since the inspection must fall within 30 days before the license is issued.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Arkansas dealer location requirements

What the state checks at the business address.

  • A bona fide established place of business used primarily for the sale of used motor vehicles.
  • A sign that identifies the business as a used motor vehicle dealership and can be read from the street, road or highway.
  • Your licensed dealer name must be shown on all signage.
  • A telephone number listed in the name of the business.
  • A filing cabinet or similar storage that locks, to secure the business records.
  • A State Police officer or designee must inspect the facility within 30 days before the license is issued.
  • Photos of the business location and of the sign go in with the application.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Arkansas dealer license

Renewal and ongoing duties

Renew in January each year, and expect an inspection before renewal. To renew you must show at least five used vehicle sales in the previous calendar year. Keep the bond and insurance in force at all times or the license is summarily suspended. Tell the State Police in writing within 7 calendar days of any change in address, phone number, ownership or agent for legal papers.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Arkansas dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Arkansas?

Apply to the Arkansas State Police. Set up an established place of business with a sign, a business phone line and locking records storage, then get a $25,000 surety bond and liability insurance. Create an account in the State Police online licensing portal, file the Primary Dealer License Application with photos of the location and sign, pay $250 and pass the facility inspection.

How much is the dealer bond in Arkansas?

$25,000. It is a corporate surety bond on a state-approved form, and it protects retail buyers who suffer a loss from a violation of the used dealer law. A dealer with several locations can file one $100,000 bond covering all of them. The bond has to stay in force the whole time you are licensed.

How much does an Arkansas dealer license cost?

$250 per year for the license certificate, plus $125 for each additional location. The initial fee is waived for applicants on Medicaid, SNAP, WIC, TANF or Lifeline, people approved for unemployment in the past 12 months, and people with income up to 200% of the federal poverty guideline. Renewing 31 days to under 6 months late adds a $35 late fee.

Do I need a pre-licensing course in Arkansas?

No. The Arkansas used dealer statute and the State Police licensing rules spell out what an applicant must provide, and neither includes a pre-licensing course or an exam.

Can I get an Arkansas dealer license without a car lot?

No. The law requires a bona fide established place of business used primarily for selling used motor vehicles, with a sign readable from the road, a phone listed in the business name and locking records storage. The State Police inspect the facility before issuing the license. The statute does not set a minimum lot size or number of display spaces.

How many cars can I sell in Arkansas without a dealer license?

Fewer than five in a calendar year is the practical line. Selling or trying to sell five or more used vehicles in one calendar year is treated as evidence that you are in the business of selling used cars, though that presumption can be rebutted. Selling a vehicle titled in your own name and used only as your personal vehicle does not make you a dealer.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with Arkansas State Police or your attorney before you sign a lease or pay a fee.

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