The first step to start your car selling company and discover the possibilities of the auto dealership industry is to get an auto dealer license.
The licensing process is complicated and includes a list of requirements that you need to meet. Obtaining a car dealer bond is a significant condition that must be met in order to be approved. So, this ensures that you comply with the law and protects the public.
In order to find step by step guide, continue reading
The kind of license that you need to get is determined by the kind of car that you wish to sell. Your Arkansas dealer certificate can be provided by two authorities.
First, The Arkansas State Police (ASP) issues the next license types:
Second, The Motor Vehicle Commission (AMVC) provides:
For different types of certificates, there are different requirements.
So, here are the requirements for receiving the Arkansas used car dealer or wholesale license from the ASP:
Below are the conditions for obtaining a new car salesman license from the AMVC:
To start the licensing process for the Arkansas State Police used car salesman license or wholesale license, first you need to complete the application form. Also, with it, you need to arrange all the documents and prove that you meet the requirements outlined above.
Similarly, for the new car salesman certificate with the AMVC, you have to fill out its application form.
In addition, with your application, you need to submit the documentation from another organization.
For all the auto license categories you are required to get an Arkansas auto dealer bond. The bond provides protection, ensuring the salesman submits to all existing state legislation.
The below are the bond amounts:
Also, you must pay a premium, which is a small percentage of the required cost, as part of the bonding process. It is calculated based on your personal and company financial situation. So, applicants with stable profiles have rates ranging from 0.75 percent to 5%.
Once you have completed the application and get all the documents you must submit them by mail to the corresponding organization.
For a used dealer license from the ASP you must pay the following fees:
For a new car dealer license from the AMVC, you need to cover:
Every year on December 31st, all categories of licenses expire. This means you must renew your ASP or AMVC license before the expiration date next year. As a result, you’ll be able to keep your auto salesman business in legal enforcement.
With a license, you will save the hassle of retaining the cars and purchase as much as you want. Furthermore, as a dealer, you can save money on retitling/taxes rather than trying to title/register and spend a large part of your future earnings if you were a private party dealer.