How to Become a Car Dealer in Arkansas

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.