Arkansas New Motorcycle, ATV, Scooter, Utility Vehicle or Lessor Dealer Bond
If you plan to sell or lease new motorcycles, ATVs, scooters, or utility vehicles in Arkansas, you must obtain a New Motorcycle, ATV, Scooter, Utility Vehicle or Lessor Dealer Bond before your dealer license can be issued or renewed.
ZipBonds makes the process fast, simple, and fully compliant with online applications, competitive rates, and expert support every step of the way!
What is an Arkansas new motorcycle, ATV, scooter, utility vehicle or lessor dealer bond?
The Arkansas New Motorcycle, ATV, Scooter, Utility Vehicle or Lessor Dealer Bond is a $25,000 surety bond required by the Arkansas Motor Vehicle Commission (AMVC) as part of the licensing process for new powersports and specialty-vehicle dealers.
This bond acts as a financial guarantee that licensed dealers will:
- Follow all Arkansas motor vehicle laws and regulations
- Conduct business ethically and lawfully
- Properly handle titles, registrations, and fees
- Protect consumers and the state from financial loss
If a dealer violates state regulations, harmed parties may file a claim against the bond.
Get Your New Motorcycle Dealer Bond in Arkansas:
Who needs this bond in Arkansas?
You are required to obtain this bond if you are applying for or renewing a license as a:
- New motorcycle dealer
- ATV dealer
- Scooter dealer
- Utility vehicle dealer
- Lessor dealer (leasing these vehicles)
This requirement applies to new vehicle dealers and is enforced by the Arkansas Motor Vehicle Commission as part of its dealer licensing program.
Why does Arkansas require this dealer bond?
The bond protects both consumers and the state by ensuring licensed dealers comply with Arkansas law.
Specifically, the bond helps ensure that dealers:
- Deliver valid titles and registrations
- Pay required taxes and fees
- Follow dealer licensing laws and ethical standards
- Avoid fraudulent or deceptive practices
If a dealer fails to meet these obligations, a claim may be filed against the bond to recover financial damages.
How does the Arkansas dealer bond work?
This surety bond involves three parties:
- Principal: The dealer who must post the bond
- Obligee: The Arkansas Motor Vehicle Commission
- Surety: The bonding company issuing the bond
If a valid claim is paid, the surety may compensate the claimant up to $25,000, and the dealer is legally responsible for reimbursing the surety.
How much does this bond cost?
- Required bond amount: $25,000
- Cost to you: Only a small annual premium, a small percentage of the total bond amount
Your exact rate depends on factors such as:
- Personal and business credit
- Financial history
- Licensing experience
Many qualified applicants pay just a few hundred dollars per year, not the full $25,000.
Licensing Authority & Application Resources
The Arkansas Motor Vehicle Commission administers dealer licensing and bonding requirements through the Arkansas Department of Labor and Licensing.
Here are several resources to get you started:
- Dealer Procedure Policy (Licensing Guide)
- Motorcycle, Scooter & ATV Dealer Forms
- Motor Vehicle Dealer Application Packet
Note: Your bond must be active and on file before your dealer license will be approved or renewed.
Frequently Asked Questions
Is this bond required every year?
Yes. The bond must remain active for the duration of your dealer license, and you must renew it annually.
Is this bond the same as insurance?
No. A surety bond protects the state and consumers — not the dealer. The dealer is responsible for reimbursing the surety if a claim is paid out.
Do used dealers need this bond?
This bond applies to new vehicle and lessor dealers. Used dealers may be subject to different bonding requirements.
How to Get Your Arkansas Auto Dealer Bond
The Arkansas New Motorcycle, ATV, Scooter, Utility Vehicle or Lessor Dealer Bond is a required step toward legally operating your dealership in Arkansas. ZipBonds helps you meet that requirement quickly, affordably, and with confidence. Apply online or call us at (888) 435-4191 to get bonded in a flash!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.