Louisiana Used Car Dealers are required to have a license and secure a surety bond in order to operate in the state. Dealers that are required to have a bond for licensure include: used dealer's, daily rental dealers, rent to purchase dealers, and vehicle auction dealers.
Dealer applicants can obtain an application from the Louisiana Used Motor Vehicle Commission.
Applicants must complete the application and pay the license fee and if applicable a criminal background check fee.
Complete the dealer training seminar.
Dealers must have a business location that includes a sign visible from the street (minimum 4' x 4') that has the exact business trade name, have a landline business phone line, and meet local authority zoning requirements. An inspection of the premises will be conducted prior to the issuance of a license.
Obtain a surety bond based on the following:
$20,000 if 119 units or less are sold in a 12-month period
$35,000 if 120 units or more are sold in a 12-month period
SuretyGroup.com has the bond you need for: Used Car, Truck, Auto Dealers, Used Boat and Boat Motor Dealers, Used Trailer Dealers, Used Motorcycle Dealers, Used Motorhome Dealers, Used Vehicle Brokers, Used ATV or Off Road Dealers, Used Buses, Firetrucks, or Wrecker Dealers, Auction Dealers (public, wholesale, or salvage), Daily Rental Used Vehicle Dealers, Dealers That Rent With The Option to Purchase.
Applicants must obtain garage liability insurance coverage with minimum limits of $55,000. Dealers that offer rent with the option to purchase must have minimum liability coverage of $100,000/$300,000/$50,000 and daily rental dealers must have a minimum of $15,000/$30,000/$25,000 coverage.
Dealers that offer rent to purchase vehicles will need to provide a copy of their rental purchase agreement.
Licenses and bonds must be renewed every 2 years by December 31st.
Premium for a Louisiana Used Vehicle Dealer bond is dependent on credit, bond amount required and experience in vehicle sales industry.
Our Surety Bond Specialists can give you a free, no-obligation quote for the type of bond needed for your business.
We have been underwriting surety bonds for over 35 years, and we offer bonds for individuals and businesses of every size.
Our team of experienced surety specialists and in-house underwriting authority gives us a unique advantage over other surety companies. We are able to offer competitive, low rates, quick approvals and immediate bond delivery. In most cases we can approve your application today and deliver your bond tomorrow.
Contact our Surety Bond Specialists at:
Hours: 8:00-5:00 CST, Monday through Friday