2018 Arkansas Code
Title 27 - Transportation
Subtitle 2 - Motor Vehicle Registration and Licensing
Chapter 14 - Motor Vehicle Administration, Certificate of Title, and Antitheft Act
Subchapter 17 - License Plates for Manufacturers, Transporters, and Dealers
§ 27-14-1706. Vehicles provided for purposes of demonstration or for repair customers

(a) A dealer may allow a prospective buyer or customer to drive an unregistered vehicle:

• (1) To demonstrate or to allow a prospective buyer to test drive the vehicle for sale purposes for a period not to exceed seventy-two (72) hours; or

• (2) As a loaner vehicle for a customer while the customer's vehicle is being repaired in the dealer's shop for a period not to exceed fourteen (14) calendar days.

(b) (1) (A) An approved dealer with the capability of issuing a temporary preprinted paper tag shall issue to the prospective buyer or customer one (1) temporary preprinted paper buyer's tag and any correlating stickers that are to be placed on the preprinted paper tag, in accordance with this section.

• (B)

  • (i) A licensed dealer who issues a temporary preprinted paper buyer's tag to a prospective buyer or customer shall place the preprinted paper tag at the location provided for the permanent motor vehicle license plate.

  • (ii) If a preprinted paper tag placed at the location provided for the permanent motor vehicle license plate becomes damaged or destroyed, the original dealer may issue a replacement preprinted paper tag that shall expire on the expiration date of the original buyer's tag.

• (C) A licensed dealer that issues a preprinted paper tag shall provide any required documentation to the Office of Motor Vehicle on the date of the transaction for entry into the vehicle temporary tag database provided for in § 27-14-1708.

• (D) The office shall provide the specifications, form, and color of the temporary preprinted paper tag.

  • (2)

    • (A) A licensed dealer without the capability of issuing temporary preprinted paper tags shall issue to the prospective buyer or customer a test drive or loaner information sheet required by this section in lieu of the temporary preprinted paper tag.

    • (B) This sheet shall be maintained in the vehicle for the duration of time in which the prospective buyer or customer has possession of the vehicle.

  • (3) If the date on which the prospective buyer or customer is required to return the vehicle to the dealer falls on Saturday, Sunday, or a legal holiday on which the dealer is not open for business, then the prospective buyer or customer will have until the next succeeding business day that is not a Saturday, Sunday, or legal holiday to return the vehicle and still be in compliance with this section.

(c) (1) When a dealer provides a motor vehicle to a prospective buyer or customer under this section, the dealer shall complete and keep in his or her possession an information sheet containing:

• (A) The year, make, and model of the vehicle;

• (B) The vehicle identification number;

• (C) The prospective buyer's or customer's name;

• (D) The time and date that the temporary preprinted paper tag or information sheet was issued to the prospective buyer or customer;

• (E) The reason the vehicle was furnished to the prospective buyer or customer; and

• (F) The length of time the prospective buyer or customer may retain the vehicle.

  • (2)

    • (A) The Director of the Department of Finance and Administration shall provide the specifications, form, and color of the information sheet to be used by dealers under this subsection.

    • (B) Information sheets retained by the dealer under this subsection are subject to examination by the director at any reasonable time.

(d)

• (1) A temporary preprinted paper buyer's tag or information sheet is not required if the prospective buyer or customer is required to return the vehicle before the end of the business day upon which the vehicle was provided to the prospective buyer or customer, and it is not unlawful for a prospective buyer or customer to test drive an unregistered vehicle in the manner provided in this subsection.

• (2) A dealer may issue temporary preprinted paper buyer's tags or use a dealer information sheet for the following purposes:

  • (A) To demonstrate or allow a prospective buyer to test drive a vehicle for a period not to exceed seventy-two (72) hours;

  • (B) For a loaner vehicle for a customer while the customer's vehicle is being repaired at the dealer's shop for a period not to exceed fourteen (14) calendar days;

  • (C) For transporting a vehicle not to exceed seventy-two (72) hours; or

  • (D) To test drive a vehicle to check its mechanical condition for a period not to exceed seventy-two (72) hours.

• (3) The director shall design the test drive or loaner information sheet to be used by dealers under this subsection and shall make this information sheet available at all state revenue offices and on the website of the Department of Finance and Administration.

• (4) A dealer shall be allowed to make and use photocopies of the test drive or loaner information sheet designed by the department in lieu of the original provided by the department.

(e) Any dealer who violates this section shall be fined the amount of twenty-five dollars ($25.00) per violation.