Free Arkansas As-Is Bill of Sale
Arkansas's lemon law (ACA § 4-90-401 et seq.) applies only to new vehicles purchased from licensed dealers — private party as-is sales carry no lemon law liability. Under Arkansas UCC ACA § 4-2-316, any disclaimer of the implied warranty of merchantability must be conspicuous in the written agreement, with 'AS IS' or equivalent language clearly visible to a reasonable buyer. Despite the as-is protection, Arkansas courts hold sellers liable for affirmative misrepresentation of known defects, making honest disclosure the seller's most important legal protection.
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Arkansas As-Is Bill of Sale — What You Need to Know
Sales Tax Details
Arkansas state sales tax on vehicle purchases is 6.5%. Additional local taxes may apply depending on the buyer's county and city. The buyer pays at the DFA Revenue Office at time of title transfer.
Exemption: Transfers to immediate family members (spouse, child, parent, sibling) may qualify for a sales tax exemption in Arkansas.
Inspection Requirements
Arkansas does not require a mandatory state vehicle safety inspection for private party sales.
Arkansas As-Is Sale — Step-by-Step Checklist
- Print 'THIS VEHICLE IS SOLD AS IS — NO WARRANTIES EXPRESS OR IMPLIED' in bold or all-caps on the bill of sale.
- Disclose all known material defects in writing — list them on the bill of sale or a signed disclosure addendum before money changes hands.
- Complete the federal odometer disclosure on the title or a separate form for vehicles under 10 years old and under 16,000 lbs GVWR.
- If the vehicle has a salvage or rebuilt title, transfer the correct Arkansas title type and disclose the salvage history in writing — never represent a salvage car as having a clean title.
- Sign the back of the Arkansas Certificate of Title over to the buyer, including sale price, odometer reading, and date.
- Provide the buyer a dated bill of sale with buyer/seller full names, addresses, VIN, year, make, model, and sale price.
- Advise the buyer that they must pay 6.5% state sales tax (plus any local tax) at the DFA Revenue Office when transferring the title.
- Remove and retain your Arkansas license plates — plates do not transfer with the vehicle in a private sale.
Common Pitfalls
- Burying the as-is disclaimer in small or mixed-case text — ACA § 4-2-316 requires conspicuous language; a court can void an inconspicuous disclaimer and expose the seller to implied warranty claims.
- Believing as-is eliminates fraud liability — Arkansas courts have consistently held that sellers who knowingly misrepresent or conceal a material defect (e.g., a flooded engine, a rebuilt frame) remain liable even if the bill of sale says 'as is.'
- Transferring a salvage vehicle on a clean title — this is criminal fraud in Arkansas and can result in criminal charges, sale rescission, and civil damages.
- Failing to complete the odometer disclosure for qualifying vehicles — federal law requires it and its omission can create liability for odometer fraud independent of any as-is clause.
- Leaving license plates on the vehicle — Arkansas plates belong to the seller; the buyer must obtain their own plates and the seller risks registration complications if plates remain on a car they no longer own.
Pro Tip
An Arkansas private party as-is sale is legally straightforward when handled correctly — a conspicuous disclaimer, written disclosure of known defects, and a properly signed title are the core requirements. The 6.5% state sales tax burden falls on the buyer at DFA, not the seller, simplifying the seller's obligations.