---
title: How to Become a Car Dealer in Arkansas
description: Learn how to become a licensed car dealer in Arkansas, from understanding state requirements to securing insurance and passing inspections.
image: https://www.carprolive.com/hubfs/Family%20at%20the%20dealership%20buying%20a%20new%20car.jpeg
---

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# How to Become a Car Dealer in Arkansas

Learn how to become a licensed car dealer in Arkansas, from understanding state requirements to securing insurance and passing inspections.

[Editorial](https://www.carprolive.com/blog/author/editorial)

 Jun 29, 2025

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---

## **Intro**

Looking to start your own dealership in Arkansas? The Arkansas car market offers great opportunities for entrepreneurs, but you must first obtain the proper license through the Arkansas State Police's Used Motor Vehicle Dealer (UMVD) Section. This guide outlines the process step by step.

## Step 1: Understand State-Specific Requirements

- License Type: Used Motor Vehicle Dealer
- Age 18+ with no disqualifying criminal history
- Must have a physical business location (not residential), signage, and a lockable file cabinet

## Step 2: Pre-Licensing Education

- Currently, Arkansas does not require pre-licensing education for used motor vehicle dealers

## Step 3: Secure a Business Location

- Must have a commercial location with signage visible from the street and space for conducting business

## Step 4: Obtain a Surety Bond & Insurance

- $25,000 surety bond minimum required
- Proof of garage liability insurance as required by the state

## Step 5: Submit Your Application

- $250 license fee
- Submit application with location photos, bond, insurance proof, and ownership details

## Step 6: Pass Inspection

- State inspection of the premises, signage, and records

## Step 7: Maintain Your License

- Renew license regularly and maintain proper records for at least 3 years

## Grow with Carprolive

After obtaining your dealer license, consider using Carprolive for all your automotive software needs. From managing your inventory and offering a professional dealership website to accessing a full print forms library and enabling e-signature capabilities, Carprolive is built to support new and growing dealerships every step of the way.

[![GET A DEMO](https://no-cache.hubspot.com/cta/default/5580331/interactive-191948404394.png)](https://www.carprolive.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLCgvZ9fXnpCVauhCMtAmTc%2F49Ze01dPwkIGkjHAes0ZUcMVfqe5bE95NA%2BPBGbyiYgkLhc4ESQF%2F%2Fejh%2FSMy9CnKl8Tr9rPxgfEa110Ce0SDZGhhHNCpP4XjDlmKf6%2B0kfr5qabwdzR21eaqpjQtFvE3Hy7hGsNOWjnXLlyMIRMuo%3D&webInteractiveContentId=191948404394&portalId=5580331)

## Disclaimer

Please note: The contents of this article are subject to change with any regulatory or legislative updates. This article does not constitute legal advice. Always verify the information with your state’s regulatory agency before proceeding.

## Sources

- https://dps.arkansas.gov/law-enforcement/arkansas-state-police/services-programs/used-motor-vehicle-dealer-licensing/
- https://www.jwsuretybonds.com/blog/arkansas-auto-dealer-license
- https://www.suretybonds.com/guide/arkansas/used-motor-vehicle-dealer-license

---

[Resources](https://www.carprolive.com/blog/tag/resources)

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