How to Get a Dealer License in Arkansas: Cost & Requirements

Last updated: August 18, 2026

In Arkansas, the police license used car dealers. Not the DMV, and not the Motor Vehicle Commission — the Department of Arkansas State Police runs used motor vehicle dealer licensing under the Used Motor Vehicle Buyers Protection Act. The licence is $250 a year with a $25,000 bond, there is no course to take, and a state police officer inspects your lot within 30 days before it is issued.

There Is No “How Many Can I Sell” Number

Most states give you a count. Arkansas does not. The statute makes it unlawful to engage in business as a used motor vehicle dealer, or to sell a vehicle not your own, without a licence — and the sale of each vehicle is a separate offence.

So the line is ownership, not volume. Selling your own car is fine. Selling one vehicle that is not yours, without a licence, is already a violation, and the Director may fine up to $1,000 per violation. Selling while your licence is suspended or revoked is a Class C felony.

The Five-Sale Clause — Read This Before You Apply

Arkansas has an unusual provision that catches people out. The statute says that an applicant for a licence, or a licensee seeking to renew one, shall establish that he or she has sold at least five (5) used motor vehicles during the previous calendar year.

For a renewing dealer that is a straightforward performance test, much like Missouri’s. For a first-time applicant it reads awkwardly, because selling five vehicles that were not your own without a licence would itself be a violation. The statute does not carve out an exception on its face. If you are applying for the first time, ask the Used Motor Vehicle Dealer Section how they apply subsection (b) to new applicants before you file — they are on 501-618-8000. It is a five-minute call that can save a rejected application.

What It Costs

Item	Cost	Notes
Licence certificate	$250 per year	Jan 1 – Dec 31, renewed during January
Each additional location	$125	Second and subsequent certificates
Late fee	$35	If expired 31 days to under 6 months
Surety bond	$25,000	Or one $100,000 bond covering all locations
Liability insurance	Statutory minimums	On all vehicles offered for sale, per the Motor Vehicle Safety Responsibility Act
Arkansas LLC	$45	Franchise tax $150 due May 1

Let it lapse six months and it is gone. A licence not renewed within six months of expiry is deemed permanently expired, and you must reapply from scratch.

The Fee Waiver Nobody Mentions

Arkansas State Police rules waive the initial application fees for applicants who:

• Receive assistance through Arkansas Medicaid, SNAP, WIC, TANF, or the Lifeline Assistance Program; or
• Were approved for unemployment within the last twelve months; or
• Have an income not exceeding 200% of the federal poverty level.

What the Lot Has to Have

Arkansas’s checklist is short but physical, and every item is verified:

• A bona fide established place of business used primarily for selling used motor vehicles, plus a photograph of it.
• A telephone number listed in the name of the business.
• A sign identifying the establishment as a used motor vehicle dealership, legible from the street, road or highway — and a picture of the sign.
• A filing cabinet or other repository adequate to secure business records under lock and key or combination.
• A facility inspection. An affidavit from a department officer confirming they inspected the facility within 30 days before issuance or renewal. Dealers continuously licensed at the same facility for 10 years or more only need this every other year.

Once licensed: display the certificate conspicuously, put the licensed dealer name on all signage, and include either your dealer name or “AR DLR” plus your licence number in every printed advertisement. Keep transaction records three years. Report any change of address, phone number or ownership within seven calendar days, and if you cease business, notify the Director within ten.

How to Get Licensed, In Order

1. Call 501-618-8000 and confirm how the five-sale requirement applies to you.
2. Form the entity and get a phone line listed in the business name.
3. Set up the lot: a sign legible from the road, and a lockable records cabinet.
4. Bind the $25,000 bond on a state-approved form, and get liability cover on every vehicle offered for sale.
5. Create your account and file the application through the Arkansas State Police portal with the $250 fee.
6. Pass the facility inspection — it must happen within 30 days before the licence issues.

Frequently Asked Questions

Who issues the dealer license in Arkansas?

The Arkansas State Police. Used motor vehicle dealers are licensed by the Department of Arkansas State Police under the Used Motor Vehicle Buyers Protection Act, not by the DMV or the Department of Finance and Administration. New vehicle dealers go through the separate Arkansas Motor Vehicle Commission instead.

How much does an Arkansas dealer license cost?

$250 per year, plus $125 for each additional location. The license period runs January 1 to December 31 and renews during January. If it lapses more than 30 days, a $35 late fee applies, and a license not renewed within six months of expiring is deemed permanently expired.

How much is the Arkansas dealer bond?

$25,000 on a bond form approved by the state. A dealer applying for licenses at multiple locations may instead post a single $100,000 bond covering all licensed locations rather than a separate bond for each one. The surety is never liable for more than $25,000.

Do I need to take a course for an Arkansas dealer license?

No. Neither the Used Motor Vehicle Buyers Protection Act nor the Arkansas State Police licensing rules require any pre-licensing education, course or exam. What Arkansas requires instead is a physical inspection of your facility by a department officer within 30 days before your license is issued or renewed.

Taxes, the franchise tax, licensing and hiring are covered in our full guide to starting a business in Arkansas.

Sources

Source	What It Covers
Arkansas State Police — Used Motor Vehicle Dealer License	Licensing authority, application portal, statute and rules, UMVD Section contact
Ark. Code § 23-112-601 et seq. — Used Motor Vehicle Buyers Protection	$250 fee, $125 additional locations, $35 late fee, six-month permanent expiry, $25,000 bond and $100,000 multi-location option, five-sale clause, sign, phone, locked cabinet, 30-day inspection, records, advertising, penalties
ASP Used Motor Vehicle Dealer Licensing Rules	Fee waivers for Medicaid/SNAP/WIC/TANF/Lifeline, unemployment and 200% federal poverty level; 7-day change notifications; 10-day cessation notice; penalties