How to get a dealer license in Arkansas

It is unlawful to engage in business as a used motor vehicle dealer, or to sell a vehicle that is not your own, without a used motor vehicle dealer license (Ark. Code 23-112-606). Selling or trying to sell five or more used vehicles in one calendar year is prima facie evidence that you are in the business of selling used vehicles (Ark. Code 23-112-602). A person selling a vehicle titled in their own name and used only as a personal vehicle is not a dealer.

• Used motor vehicle dealer license (primary location): Anyone who sells, brokers, exchanges, or leases with an option to buy used vehicles for profit. The statute's dealer definition includes wholesalers and auto auctions. Issued by the Arkansas State Police.
• Satellite dealer license (additional location): A licensed used dealer adding a second or later location. Each additional location certificate costs $125. Applied for online through the ASP system.
• New motor vehicle (franchise) dealer: Dealers with a franchise to sell new autos, new RVs or commercial trucks, or new specialty vehicles. Licensed by the Arkansas Motor Vehicle Commission. The used dealer law excludes a licensed new dealer selling used vehicles as part of its new vehicle operations.
• Used auto dealer branch (AMVC): The Arkansas Motor Vehicle Commission lists a separate Used Auto Dealer Branch initial application and renewal packet. The page does not say who qualifies.
• Motorcycle, scooter and ATV dealer: Dealers of motorcycles, scooters and ATVs. Licensed by the Arkansas Motor Vehicle Commission.
• Motor vehicle lessor: Businesses that lease motor vehicles. Licensed by the Arkansas Motor Vehicle Commission.
• Manufacturer and distributor: Vehicle manufacturers and distributors. Licensed by the Arkansas Motor Vehicle Commission.

Surety bond. Corporate surety bond of $25,000 on a state-approved form for each location. A dealer with multiple locations may file one $100,000 bond covering all of them instead (Ark. Code 23-112-607(d)). The bond protects retail buyers. If the bond or insurance lapses, the license is summarily suspended until proof is filed (ASP Rule 2.7).

Insurance. Proof of liability insurance on all vehicles offered for sale, in at least the amount required by the Motor Vehicle Safety Responsibility Act (Ark. Code 23-112-607(c)(3)). Insurance must stay in force or the license is summarily suspended (ASP Rule 2.7).

Place of business. You need a bona fide established place of business used primarily for selling used vehicles. Submit a photo of the location. You need a phone number listed in the business name, a sign identifying the dealership that is legible from the street (with a photo), and a filing cabinet or other place to keep records under lock and key. An ASP officer or designee must inspect the facility within 30 days before the license is issued or renewed (every other year after 10 years at the same facility). Display the license, and keep records for 3 years. You may not sell from any other location except at a state trade association event, with a special sale permit, or at an auto auction. Report address, phone or ownership changes in writing within 7 calendar days (ASP Rule 2.2). No minimum lot size or display area is set in the statute or rules.

Background check. We found no fingerprint or criminal background check requirement in the statute or the current ASP rules. The application must state whether the applicant has ever held a dealer license and whether one was ever suspended or revoked.

Pre-license education. Arkansas does not require a pre-license course for this license.

1. Set up a business location used mainly for selling used vehicles, with a sign legible from the street, a business phone listed in the business name, and a locking file cabinet for records.
2. Buy a $25,000 corporate surety bond on the state-approved form ($100,000 covers multiple locations) and liability insurance on all vehicles you will offer for sale.
3. Create an account in the Arkansas State Police online licensing system and start the Primary Dealer License Application.
4. Provide photos of the location and sign, a list of owners and salespersons, your prior dealer license history, and an agent for service of process.
5. Pay the $250 annual license fee, or request a fee waiver if you qualify (for example, Medicaid or SNAP recipients, recent unemployment, or income at or below 200% of the federal poverty guidelines).
6. Pass the ASP facility inspection, which must be done within 30 days before the license is issued.
7. Once licensed, apply to the Department of Finance and Administration for dealer plates with a copy of your license ($100 master plate, $25 per extra plate).
8. Renew online each January.

Official forms:

• Primary Dealer License Application (online)
• Satellite Dealer License Application (online)
• Primary Dealer License Renewal Application (online)
• Satellite Dealer License Renewal Application (online)
• Primary Dealer Update Bond or Insurance Form (online)
• First Time User Tutorial (account creation for new dealers)

Arkansas law does not set a display lot or minimum lot size for used dealers. You still need a bona fide established place of business used mainly for selling used vehicles, with a street-legible sign, a business phone and locked record storage, and it must pass an ASP inspection.

Arkansas includes auto auctions and wholesalers in its used dealer definition, and a licensed dealer may sell away from its licensed location at an auto auction. AuctionACCESS says its membership is restricted to licensed, credentialed vehicle dealers and their authorized representatives.

Licenses run from January 1 to December 31 and are renewed in January through the ASP online system (Primary or Satellite Dealer License Renewal Application). The facility inspection must be done within 30 days before renewal. If the license has been expired at least 31 days but less than 6 months, a $35 late fee applies. After 6 months it is permanently expired and you must apply again. A dealer who renews late must also file a sworn affidavit that they have not violated the law or rules (ASP Rule 2.1).

This is general information, not legal advice. Rules and fees change, so confirm the details with the Arkansas State Police, Used Motor Vehicle Dealer Section before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Arkansas.