How to get an Arkansas Used Motor Vehicle Dealer License

How do I get a used motor vehicle dealer license in Arkansas?

Step 1. Register you dealership's business location. 

To get your used motor vehicle dealer license, you'll first need to establish your dealership's physical business location and register it as a business with the State of Arkansas. For your dealership to be considered a legal place of business, it needs to have a physical address that complies with state law. It cannot be located at a residential address (including garages or other residential structures) or at a post office box address. 

Your physical business location must have an office space that's used for storing documents, displaying your used motor vehicle dealer license, and conducting business for your dealership. It must have a sign with your dealership's name secured to the building, post, fence, wall, or any other structure on the outside of your business. 

Your dealership must have at least one lockable file cabinet that can store business documents. Your dealership must have a record of every vehicle transaction maintained for 3 years from the date the vehicle was purchased. These records include, but are not limited to: bills of sale, finance agreements, and invoices. These documents must be available for inspection by the Arkansas State Police Department. 

You'll need to provide photos of your dealership in your application to ensure your compliance with Arkansas business location laws and regulations.

• Photo of the business location that shows the outside storefront of your dealership
• Photo of the sign that displays your dealership's name

Step 2. Get your dealership telephone number. 

You'll need to create an official telephone number for your dealership and provide a printout of the online number listing. The printout must contain your dealership's name, address, and phone number. You can list your phone number on Google, Facebook, your company's website, or another similar web page. The number must be a functioning business number; it can't be broken, turned off, or disconnected. 

Step 3. Purchase your Arkansas used motor vehicle dealer surety bond. 

Arkansas Code Section 23-112-607 requires you file a $25,000 surety bond to ensure you comply with the law while working as a used motor vehicle dealer. This bond provides financial protection to your customers in the event you or your dealership commits fraud or other illegal activities.

You can apply for your Arkansas used motor vehicle dealer bond online 24/7. Annual premiums start at $125 and require a quick application review to determine pricing.

Step 4. Purchase garage liability insurance.

You'll need to provide a copy of your garage liability insurance certificate with your license application. You must maintain garage liability insurance for all vehicles you sell in the following amounts. 

• $25,000 minimum for each bodily injury, per person
• $50,000 minimum for each bodily injury, per accident
• $25,000 minimum for property damage, per traffic crash

Your garage liability insurance certificate must show your dealership's name and physical business address. Emailed insurance payment is not accepted as proof of your garage liability insurance. 

Step 5. Submit your used motor vehicle dealer application and fee. 

Fill out your Arkansas State Police Used Motor Vehicle Dealer License Application Form accurately and completely. Incomplete applications will be returned, which will delay your application process. Anyone who has ownership interest in your business must be listed on the application, as well as all salespeople and sales managers you employ. 

You also must provide the following documents with your application. 

• Photos of your business
• Printout of your online telephone number listing
• Official used motor vehicle dealer surety bond
• Garage liability insurance certificate copy

You can mail or physically deliver your application, paperwork, and fee to the Arkansas State Police Department. You can pay your $250 application fee by check, money order, or credit card (if applying in person). 

Arkansas State Police Department 
UMVD Section #1
State Police Plaza Drive 
Little Rock, AR 72209

Once you've submitted your application, the Arkansas State Police will review it, which can take up to 15 business days.

Step 6. Get your dealership location inspected. 

Once your application has been approved, the Arkansas State Police will contact you to schedule an official UMVD inspection. The inspector will inspect your dealership's location, sign, phone number, and lockable file cabinet to verify they meet all required standards. At least one dealership owner must be present at the inspection. 

Step 7. Purchase your used motor vehicle master tag.

Once your dealership location has passed inspection, the inspector will submit a UMVD inspection report to its office. The office will finalize your license and issue your official Arkansas used motor vehicle dealer license and fee schedule. Your official license will be emailed to you, or you can pick it up from the Arkansas State Police. 

Take your official license and fee schedule to your local DMV, where you'll be authorized to buy a used motor vehicle master tag. The DMV will keep the fee schedule, but you'll keep your license, which must be displayed in your dealership's office.