Louisiana Motor Vehicle Dealer, Dismantler/Recycler, Public License Tag Agent and Inspection Bonds

Get Your Louisiana Motor Vehicle Dealer Bond

Who Is Required To Purchase an Auto Dealer Bond In Louisiana?

Here are most of the Louisiana vehicle dealer classifications that require a license:

• New vehicle dealers (franchised dealers)
• Used vehicle dealers
• Distributors or wholesalers
• Satellite warranty and repair centers
• Vehicle dismantlers and recyclers
• Vehicle facilities and specialty dealers
• Inspection stations
• Public license tag agents

All of these licensing classifications require a surety bond before the Commission will issue you a license.

Here are the bond amounts for each dealer license classification:

Vehicle dismantlers and recyclers are required to be licensed as a used vehicle dealer and that's why they share the same bond amount requirement.

Here are additional bonding amounts for other businesses in the motor vehicle industry.

Every Louisiana Dealer License Is Independent

Each location requires its own license with its own auto dealer surety bond requirement.

For example, if you have a franchise dealer license and you plan on selling used vehicles, you will have to get a license for both classifications and each license has its own bonding requirement.

In this example, you would need to purchase the new dealer bond for $20,000 and the used dealer bond for $50,000.

Why is a Louisiana Motor Vehicle Dealer Bond Required?

The Commission's goal is to have reputable vehicle dealers serving the public's needs. This is the reason they create the licensing process.

It's essentially a method of ensuring only serious businesses are allowed to exist.

And yet, every year there will be licensed dealerships who purposefully harm their customers to increase profits.

Examples of these fraudulent actions include:

• Improperly transferring a title
• Selling vehicles with no title
• Misrepresenting vehicle information like milage, manufacture year, or condition
• Stealing customer deposits
• Failing to pay the correct sales taxes to the Louisiana Department of Revenue

Your auto dealer surety bond requirement is the primary method the Commission has to protect the public and the Louisiana Department of Revenue from these fraudulent actions.

How Much Does a Louisiana Auto Dealer Bond Cost?

How a Auto Dealer Bond Price Is Determined

At a high level an auto dealer surety bond's price is determined by a rate quoted from a surety.

A surety is an insurance company that underwrites these bonds and they typically look at these primary factors when determining their rate:

• The personal credit of the dealerships owner or owners
• Auto dealer industry and experience
• Prior bond claims if owners have been licensed in the past

This is where you can save hundreds of dollars purchasing your auto dealership bond.

Why You Should Use Surety Bond Direct To Purchase Your Bond

Surety Bonds Direct is a specialized surety agency and as an agency we work with A rated sureties to price shop for you.

Even though every surety uses similar factors when determining their rate, the actual rates they quote can vary by many percentage points.

Let's look at some pricing examples so you can see how big of a difference just one or two percentage points can make to the price.

Here are examples for the used dealer bond with the amount of $50,000.

You can clearly see just one percentage point can save you $500. This is enough to pay all of the required fees to get licensed and have some money left over for dealer plates.

Click here and have us price shop for you.

Or call a bond specialist at 1-800-608-9950.

There is no cost and no obligation to purchase when you request pricing. Get the information you need to finish off the licensing process.

How Long Does The Louisiana Auto Dealer Bond Last?

Most Louisiana vehicle dealer bonds have a bond term of 12 months from the effective date. The effective date is the active date you choose when you purchase your bond.

The used vehicle dealer licenses have a hard expiration date of December 31 each year. The surety bond expiration coincides with the dealer license.

Before your bond expires, you must renew it to keep it active. The Commission requires an active bond to be on file for as long as you plan to stay in business.

This is another great reason so choose a surety agent like Surety Bonds Direct when purchasing your bond.

You are assigned a bond specialist who manages the process for you.

Your bond specialist will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time so your bond remains active.

Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue selling vehicles.

Motor Vehicle Dealer Bonds And Getting Your Louisiana Business License/Registration

At a high level, the steps for obtaining your dealer licensed are:

• Decide on your license classifications or classification
• Determine your ownership details and identities
• Purchase your surety bond
• Get your dealership license plates
• Fulfill all of the dealership and property requirements
• Complete your application

Additional Louisiana Motor Vehicle Dealer Bond Resources & Links

Applicants should confirm required surety bond expiration date with the state prior to requesting a quote. Typically, bonds in Districts 1, 2 and 3 expire on December 31st of even years and bonds in Districts 4 and 5 expire on December 31st of odd years.

Louisiana Motor Vehicle Commission