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Louisiana auto dealers need a license and surety bond if they sell new or used vehicles in the state. Two different organizations issue dealer licenses, and surety bond amounts vary. Keep reading to find out how to get licensed and bonded, or use our convenient online form to apply for a dealer bond today.
Used Auto Dealer License Requirements
Louisiana auto dealers selling used cars are licensed by the state Used Motor Vehicle Commission. If you sell five or more cars in a calendar year, you’ll need this license. On the application, dealers must specify which types of used vehicles they will sell (cars, boats, trailers, motorcycles, etc.). Here are some of the requirements used car dealers must meet:
- Established place of business (leased or owned)
- At least one salesperson
- Attend an Educational Training Seminar
- Obtain a $50,000 surety bond (as of August 2016)
- Obtain garage liability insurance
- Zoning verification from local zoning authority
- Permanent business sign
- Business phone number
Once an application is under review, the business location will be inspected. When they are issued, licenses are valid from the date issued or January 1, whichever date is later, and expire December 31. The license costs $400 for the two-year term. Give the licensing requirements a thorough read before applying.
The surety bond required of used auto dealers increased in 2016 to $50,000, up from either $20,000 or $35,000, depending on how many cars the dealer sold.
New Auto Dealer License Requirements
Louisiana auto dealers selling new cars in the state go through a similar licensing process with the Motor Vehicle Commission. Their places of business must also be correctly zoned, and each business location needs a license. They also need a surety bond in a lessor amount, $20,000. Like the used car dealer bond, this bond protects consumers if the dealer breaks the law and causes them financial damage.
Licensing periods are a little more complicated for new car dealers�their license is valid for two years, and the period depends on which Commission district you are in (there are eight). Find which counties are in which district here, and then find your licensing period here in �32.1254. If you’re interested in applying to be an auto dealer in Louisiana, contact the Commission at (504) 838-5207 for forms and more information—the forms are not available online.
Ready to get a Louisiana dealer license? Get started by getting a quote for your surety bond today!�