Tips for Buying a Used Car in Arkansas: Laws, Taxes and Secrets

Are you shopping around for used cars and used trucks for sale in Arkansas? That’s great! But here are some important things locals should know as they look around, including laws, tips, taxes and important paperwork you should expect to see. These facts are important for those looking up questions like “Are there used Mustangs for sale in Arkansas near me?” while not being familiar with the area or the local dealerships. If you’re looking for a reliable used Ford from a local Ford dealer, shop for used models here, but, either way, make sure you understand these important aspects of the buying process before you go.

Arkansas Car Sales Tax

Arkansas only has a 6.5 percent sales tax on cars. Nearby, in Tennessee, it’s 7 percent. For those hunting for used cars, Arkansas can be a good state to be in.

You should also expect to pay a $10 title fee as well as a registration fee, which depends on the size and type of the car. If you need to transfer plates, Arkansas charges a $1 transfer fee.

Paperwork Required While Buying a Used Car in Arkansas

• A Federal odometer disclosure statement
• The title certificate (with your signature)
• A bill of sale or invoice
• Proof of taxes paid (usually a tax receipt)
• Proof of car insurance
• Details on the vehicle such as the VIN
• A VIN inspection certificate (for vehicles with salvaged or out-of-state titles)
• A registration certificate
• Proof the car has been assessed for taxes
• Lien agreement (when applicable)

Important Arkansas Laws to Know

• The Arkansas “lemon” law applies specifically to new cars, so it’s important to ask used car dealerships in Arkansas if the car you’re interested in was repurchased from the manufacturer from a lemon law dispute.
• It is illegal to tamper with an odometer, including disconnecting or replacing an odometer.
• Dealers aren’t required by either federal or state law to give buyers a right to cancel. Be sure to ask about the return policy.
• The used car dealer is required to include changes to the warranty on your buyer’s guide; be sure to read it over when you’re shopping.
• Check with the Department of Finance and Administration to learn about the car’s title history.
• You can also look up a vehicle’s criminal history with the National Motor Vehicle Title Information System.
• Arkansas has fairly strict laws against “yo-yo sales,” in which the financing terms change after you take the vehicle home. Locals have the right to cancel a sale if the financial terms change after driving the car off the lot. If anything like this happens, you can file a formal complaint.

Tips for Buying a Used Car in Arkansas

• Before you go, spend time researching which cars would fit your lifestyle. Look up guides and reports on the models and years you’re interested in.
• Check for any outstanding, unrepaired recalls by entering in the VIN into the National Highway Traffic Safety Administration’s Safer Car database.
• Look at comparative prices of similar cars on tools like Kelley Blue Book or Consumer Reports.
• Look up car history reports via insurance companies, local authorities or tools like Auto Check. (Auto Check reports come with many of our used vehicles.)
• Figure out the expected price of your trade-in vehicle. You can do that easily with our Trade Appraisal tool.
• Get a copy of your credit report before you go so that you know what to expect from financing. You can get your official, free report at AnnualCreditReport.com.
• Ask the dealer about prior damage. If there has been more than 70 percent damage on the vehicle, it will be labeled as “SALVAGE” or “REBUILT” on the title.
• Always test drive used vehicles; it can save a lot of stress.
• Have a mechanic or inspector look it over. (Luckily, Ford’s certified pre-owned process completely covers that!)
• Ask about the warranty, and make sure the details are written in the buyer’s guide.
• Look over paperwork carefully, and don’t hesitate to ask questions about it. If you need to, ask to take the papers home to review.
• Note that when the dealer offers a vehicle “as is,” you usually forgo warranty coverage.
• Talk about your financing options with your dealer; think about the terms, interest rates and how much you can put down as a repayment.
• Be sure you have copies of all the documents you need when you leave, such as the title, registration, insurance, proof of purchase, lien agreement, etc.

If you have more questions about the process, feel free to give us a call at 870-735-9800. We’d be happy to walk you through everything you’ll need to test drive some fun used Fords in Memphis.

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