Purchasing a vehicle in Arkansas is governed by the regulations outlined in the Arkansas Code Title 27 Chapter 14. Buyers must adhere to these state laws to protect their interests and those of the sellers.
By understanding and following these regulations, buyers have greater security and peace of mind during their transactions with sellers. Buyers must also verify that the sellers they are dealing with comply with the regulations. Failure to comply with these regulations can result in severe consequences, such as legal penalties, fines, or criminal charges.
For proper adherence, buyers should always refer to the Arkansas Department of Finance and Administration (DFA) guidelines and its Office of Motor Vehicle (OMV), which oversees and enforces these regulations.
What Is the Process for Buying a Car in Arkansas?
The process of purchasing a vehicle in Arkansas differs based on the source of the transaction – whether it is from an in-state dealer, an out-of-state dealer, or a private party seller. The Arkansas DFA has established separate guidelines to be followed for each of these scenarios, which are outlined below:
Buying from a Dealer in Arkansas
When purchasing a car from a dealer in Arkansas, the dealer usually handles most of the paperwork. However, the buyer will still have to get involved in the following key aspects:
Title Verification
Before buying any vehicle from an Arkansas dealer, the buyer must confirm if their prospective dealer can legally sell vehicles in Arkansas. Buyers can verify the dealer's license through several means:
Visit or Call the Arkansas Motor Vehicle Commission
Buyers can visit the AR Motor Vehicle Commission (MVC) office in person and request to verify a specific dealer's licensing status and history: 900 West Capitol Ave., Suite 400, Little Rock, AR 72201-3826.
If visiting in person is not convenient, buyers can call the AR MVC office at 501-682-1428 or fax at 501-682-5573. The buyer can provide the dealer's information to an MVC representative, who can look up and confirm their licensing details over the phone.
Ask the Dealer Directly
Legitimate dealers should be willing to provide buyers with their MVC-issued dealer license number and other details about their licensing upon request. Arkansas also requires dealers to display their MVC-issued license prominently at their place of business. Buyers can inspect this physical license during their visit.
Use the Arkansas Department of Labor and Licensing Search Portal
Use the Licensee Search portal to verify the dealer's license. The portal lets buyers verify the dealer's license by providing the right details. The buyer must select the Motor Vehicle Commission in the "Select a Roster" dropdown list. Then, the buyer must provide the required details.
Buyer's Guide
Under Arkansas law, dealers must provide buyers with a Buyer's Guide provided by the dealer. The Federal Trade Commission (FTC) requires this Guide.
The Guide is crucial. It details the vehicle's warranty coverage status and explicitly states whether the car is being sold with or without a warranty. In cases where a warranty is applicable, the Guide outlines the specific type of warranty and the components covered under its terms.
By carefully reviewing the Buyer's Guide, prospective buyers can gain a comprehensive understanding of the warranty terms associated with the vehicle before making the purchase. This knowledge empowers buyers to make an informed decision and be fully aware of the warranty coverage they are entitled to or the lack thereof.
Transfer of License Plates
In Arkansas, buyers with existing license plates are responsible for transferring those plates to their newly purchased vehicles. The dealer is not involved in the process.
The buyer can do the license plate transfer when they register their new vehicle at any State Revenue Office or through the Vehicle Registration and Title portal of the MyDMV page. They need to pay the $1 transfer fee or any additional fee if the vehicles differ. Note that only passenger cars are eligible for online registration.
However, if the current license plate is lost, stolen, or damaged, the buyer must replace it before transferring it to their new vehicle. For assistance, buyers should contact the Arkansas OMV at 501-682-4692 or visit a nearby branch.
Temporary Preprinted Paper Buyer's Tag
When purchasing a motor vehicle from a licensed dealer in Arkansas, the buyer must obtain a temporary preprinted paper buyer's tag. This tag and a correlating sticker must be placed on the vehicle. The temporary preprinted paper buyer's tag can be issued by an approved licensed dealer.
Suppose a licensed dealer is unable to issue the temporary preprinted paper buyer's tag. In that case, the buyer must obtain it within ten days of the vehicle's purchase from an approved vendor or the OMV. To obtain the tag, the buyer must provide the following:
- A copy of the bill of sale or other necessary documentation that verifies the dealer's name
- The buyer's name
- The date of sale
- The vehicle identification number (VIN)
- The make, color, and model of the vehicle
It is also important for the buyer to keep a copy of the bill of sale in the vehicle until the preprinted paper buyer's tag and sticker are obtained.
Failure to obtain the temporary preprinted paper buyer's tag and sticker within ten days of purchasing the vehicle may result in fines.
The temporary tag is valid for the vehicle's operation until either the registration date or within 30 days after the purchase date, whichever comes first.
For more information about the temporary preprinted paper buyer's tag, buyers can refer to the Arkansas Code Section 27-17-1705.
Odometer Certification
When purchasing a vehicle in Arkansas, the buyer and the dealer must certify the odometer reading of the vehicle being sold. This certification process helps ensure transparency and accuracy regarding the vehicle's actual mileage.
The Arkansas Bill of Sale form includes a designated Odometer Disclosure section specifically for this purpose. By properly completing this section, the buyer and dealer attest to the veracity of the stated odometer reading, maintaining a clear record of the vehicle's mileage history.
Buying a Vehicle From an Out-of-State Dealer
When buying a vehicle from an out-of-state dealer, the buyer can complete the purchase as usual. The buyer must obtain the following documents:
- Properly signed over title or certificate of origin
- Bill of sale/purchase agreement
- Odometer disclosure statement
- Any applicable warranty documents
Once the vehicle arrives in Arkansas, the buyer must contact the Arkansas DFA to understand the requirements for registering an out-of-state vehicle purchase. They must also prepare all the documents they received from the out-of-state dealer and the following:
- Proof of insurance for the vehicle in Arkansas
- Payment for registration fees and taxes
- Lien release document
These documents and payments are needed as the buyer will process the vehicle registration in person, online, or by mail. Buyers should also note that if the out-of-state dealer did not collect sales tax, the buyer will need to pay the applicable Arkansas sales tax (6.5%) and any local taxes when registering the vehicle.
Out-of-State Title
Note also that for vehicles with out-of-state titles branded as "Salvage," "Prior Salvage," or similar designations, Arkansas law requires a VIN verification inspection. It can be done by:
- A certified law enforcement officer
- The Arkansas State Police
- A designee of the Arkansas State Police
Buying a Vehicle From a Private Seller
While purchasing a vehicle from a private seller in Arkansas may present the opportunity to negotiate a lower price through direct dealings with the owner, it also comes with certain disadvantages. Vehicles acquired from private sellers typically lack warranty coverage and offer limited legal protections for the buyer.
Additionally, buyers may need to undertake a thorough inspection to identify any potential hidden defects or issues with the vehicle. To facilitate a secure transaction and mitigate risks, the Arkansas DFA advises prospective buyers to exercise caution and strongly consider taking the following actions when pursuing a vehicle from a private party:
Title Verification
Before finalizing a vehicle purchase from a private seller, buyers must validate the authenticity of the vehicle's title. To accomplish this, buyers can cross-reference and confirm the following details on the title:
- Verify that the individual selling the car is the rightful owner and has the legal authority to transfer the title.
- Ensure that the vehicle's make, model, and year match the VIN on the title to safeguard against VIN tampering or counterfeiting.
- Check for any title brands or designations, such as "salvage," "rebuilt," or "flood damaged," which may impact the vehicle's value or condition.
By examining the vehicle's title, buyers can confirm the legitimacy of the transaction and the private seller's ownership claims before proceeding with the purchase.
The buyer can perform the verification by physically examining the vehicle title or through the Arkansas Title, Registration, and Lien Record Search portal.
Vehicle History Reports
Buyers should obtain a detailed vehicle history report to gain a comprehensive understanding of a vehicle's history before purchasing from a private seller. Buyers can access this information through the National Motor Vehicle Title Information System (NMVTIS) by using reports from NMVTIS-approved data providers.
These reports contain crucial details about the vehicle, including:
- Information regarding the current and previous titles
- The date on which the most recent title was issued
- Any recorded brands or designations affixed to the title over the vehicle's lifetime
- The documented odometer reading history
- A record of any instances where the vehicle was declared a total loss
- Records on whether the vehicle has previously been issued a salvage title
By procuring such a report, buyers can make a well-informed decision. It provides an in-depth look into the vehicle's past, allowing them to assess its overall condition and value more accurately before finalizing the purchase from a private party seller.
VIN Check
In addition to obtaining a comprehensive vehicle history report, prospective buyers should conduct a VIN Check, especially when purchasing a used vehicle from a private seller.
A VIN Check is a more basic verification process focusing solely on the vehicle's VIN. It validates the legitimacy of the VIN and provides basic details associated with that specific number.
The VIN Check will flag any major "brands" or titles, such as salvage, flood, or rebuilt, that are associated with the VIN. It also checks for existing liens, theft records, or other ownership issues tied to that particular VIN.
Buyers can access the free VINCheck Service the National Insurance Crime Bureau (NICB) provides. This service helps determine if a vehicle has been reported as stolen but not yet recovered. Alternatively, buyers can visit their nearest Arkansas revenue office for assistance conducting a VIN Check.
Emissions Inspection
While Arkansas offers guidance on reducing vehicle emissions and air pollution, no statewide emissions testing programs or requirements exist when purchasing a new or used vehicle. However, buyers may still choose to get this done.
Odometer Reading
As mentioned previously, it is necessary for the buyer and the seller to certify the vehicle's odometer reading. The dedicated statement document for the reading has already been integrated into the Arkansas Bill of Sale form under the Odometer Disclosure section.
Bill of Sale
Arkansas does not usually require the bill of sale as part of the requirements for vehicle registration after buying a vehicle. The Arkansas DFA and OMV prefer the vehicle title as it often includes a section for the transaction details. However, there may be instances when a bill of sale can be a secondary requirement:
- The individual is the seller and wants to apply for a credit on the sales tax of the vehicle sale
- The individual is the buyer, and the vehicle title of the newly-purchased vehicle doesn't have sufficient space for the seller to sign it to complete the title.
Regardless of which reason the bill of sale is needed, it must contain the following details:
- VIN
- Description of the vehicle
- Names, addresses, and signatures of the buyer and seller
- County and state of vehicle's purchase or sale
- The vehicle's final sale price
- Odometer reading
If the seller does not have or has lost the title where the sale transaction can be outlined, they must apply for a replacement title before transferring ownership. They just need to complete the Application for Title or Replacement Title.
Ownership Transfer
Effective August 1, 2023, vehicle buyers in Arkansas now have an extended period of 60 days, instead of the previous 30-day window, to properly register a newly purchased vehicle in their name after the sale date. During these 60 days, buyers must obtain a temporary preprinted paper buyer's tag and a corresponding sticker.
When purchasing from a dealer, buyers can conveniently purchase this temporary tag directly from the dealership. However, buyers must acquire the temporary tag from designated vendors or the OMV for private party transactions.
By extending the registration period to 60 days and requiring temporary buyer's tags, Arkansas aims to provide buyers ample time to complete the necessary paperwork and registration process for compliance and proper identification of newly purchased vehicles.
Arkansas Lemon Law
The Arkansas Lemon Law, officially known as the Arkansas New Motor Vehicle Quality Assurance Act, protects consumers who purchase or lease new motor vehicles that turn out to be defective or "lemons."
It applies to any self-propelled vehicle licensed, purchased, or leased in Arkansas primarily designed for transporting persons or property on public roads. It excludes mopeds, motorcycles, motor home living facilities, and vehicles over 10,000 lbs. gross vehicle weight (except for motor homes).
The Lemon Law requires manufacturers to stand behind their products. It provides a process for Arkansas consumers to get relief if their new vehicle is defective despite a reasonable number of repair attempts.
What Are the Fees for Buying a Car in Arkansas?
When buying a car in Arkansas, there are different fees that buyers must pay, such as:
Sales Tax
Arkansas has a 6.5% state sales tax on vehicle purchases. Local taxes from counties and cities can be added, typically from 0% to around 5%. The combined state and local sales tax rate averages around 9.133%. The DFA has a dedicated Sales Tax Calculator to calculate how much buyers must pay.
Other Fees
Buyers may also need to pay additional fees, including the following:
- Title Fee: A $10 fee is required to transfer the title into the buyer's name.
- Registration Fee: This ranges from $17 to $30 based on the vehicle's type and weight. To learn more about the different registration fees, check this Fee Schedule.
- License Plate or Transfer Fee: If plates are transferred from an old vehicle, there is a $1 fee.
- Documentation (Doc) Fee: Dealerships charge a doc fee to cover paperwork processing, which is negotiable.
What Are the Insurance Requirements for Vehicles in Arkansas?
Every car owner in Arkansas must carry liability insurance coverage. Liability coverage pays for any claims when the insured driver is at fault in an accident. The minimum liability coverage required by law are:
- $25,000 per person for bodily injury
- $50,000 per accident
- $25,000 to cover property damage to other's property
Drivers must carry proof of current insurance (ID card, policy, or binder) in their vehicle at all times and present it when requested by law enforcement or after an accident. Failing to maintain the required minimum liability insurance can result in fines, license suspension, and potential jail time for repeat offenses in Arkansas.
Can a Non-Resident Buy a Car in Arkansas?
Non-residents can buy a car from a dealer in Arkansas. They are also not required to provide proof of Arkansas residency to purchase a vehicle from a dealer in the state. However, they must provide the following:
- A valid, current government-issued photo ID
- Proof of car insurance
- An Arkansas address to complete the sale
The dealer should not charge Arkansas sales tax on the purchase if the vehicle will be registered out-of-state. When registering the vehicle in the buyer's home state, the sales tax would be paid. After the purchase, the buyer must properly transfer the title and registration to their home state, following the applicable laws and regulations.