Dealer Surety Bond in Arkansas: $10,000–$100,000 Requirement
Arkansas requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Arkansas
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Arkansas
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Arkansas-Specific Note
Arkansas-Specific Facts for Dealer Surety Bond
Arkansas Vehicle transfer fees and requirements
In Arkansas, the title transfer fee is $10 and registration costs $17 - $30 depending on vehicle weight. Vehicle sales are subject to 6.5% state sales tax plus local taxes. Arkansas does not require notarization for private-party vehicle transfers. Arkansas does not require emission testing for private-party vehicle sales.
- Bill of sale must include sale price for tax assessment
- Title transfer required within 30 days
- Safety inspection required for out-of-state vehicles
Arkansas sales tax on vehicle purchases
Arkansas has a 6.5% state sales tax rate. 6.5% state plus local taxes up to 5.125%. Private-party vehicle sales in Arkansas are subject to sales tax. Sales tax applies to private party vehicle purchases. The title transfer fee is $10.
Arkansas bill of sale statistics
BillOfSaleNow has generated 741 bill of sale documents for Arkansas transactions, with 20 generated this month alone. The most popular vehicle type is car.
More Arkansas Vehicle Guides
- Insurance Required to Register in Arkansas
- Junk Title Conversion in Arkansas
- Kelley Blue Book Value in Arkansas
- Leasing vs Buying in Arkansas
- Mechanic's Lien on Vehicle in Arkansas
- New Resident Vehicle Registration in Arkansas
Each guide is written specifically for Arkansas laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Arkansas?
Arkansas requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Arkansas?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Arkansas?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Arkansas dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Arkansas?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.