What is an Arkansas Used Motor Vehicle Dealer Bond?
Know the what, how, and why of this surety bond today!
It is a licensure requirement for Used Motor Vehicle Dealers within the State of Arkansas.
The Arkansas Motor Vehicle Commission requires this type of surety bond in order to make sure that the licensed dealer will faithfully comply with his or her obligations which include avoiding the following violations:
- Sell used motor vehicles without a license
- Commit fraudulent acts in selling vehicles
- Falsify or fail to deliver the certificate of title
- Sell a stolen vehicle
- Assist an unlicensed dealer in selling a vehicle
If the licensed dealer does any of the aforementioned misconducts, the person who has been harmed will have the right to be justly compensated through the surety bond.
The surety bond requirement is in compliance with Section 23-112-607 of the Arkansas Code.
What is the Used Motor Vehicle Dealer Bond amount?
$25,000 – minimum bond amount
$100,000 – the bond amount for a used motor vehicle dealer that has various business locations
If you have an excellent credit score, you will be eligible to pay for a low bond premium or as low as 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Used Motor Vehicle Dealer Bond?
In order to secure this type of bond, the license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Arkansas
- The surety bond should be written on a form approved by the State
- The surety bond should be made payable to the State of Arkansas
- The licensed dealer is obligated to comply with the provisions of Section 23-112 of the Arkansas Code or the Arkansas Motor Vehicle Commission Act, the rules and regulations of the Arkansas Motor Vehicle Commission, and all the other applicable rules
- If the licensed dealer commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond should run concurrently with the dealer’s license
Ready to start on your bond? APPLY TODAY!