Who needs Louisiana Auto Dealer Bonds?
If you want to get or renew a motor vehicle dealer license in Louisiana, you are required to file an auto dealer bond with the Louisiana Motor Vehicle Commission.
This bond is required for most types of vehicle-related licenses, including new car dealers, used car dealers, specialty dealers, dismantlers, recyclers, and public license tag agents. The bond is part of the licensing process and must be in place before your license can be approved or renewed.
The purpose of the bond is to make sure dealers follow Louisiana’s motor vehicle laws and operate honestly. It provides financial protection to customers, creditors, and the state if a dealer violates licensing rules or engages in misconduct.
How much do Louisiana Auto Dealer Bonds cost?
The cost of a Louisiana auto dealer bond depends on the bond amount required for your specific license type. Statewide bond amounts generally range from $20,000 to $100,000, depending on the type of dealership.
You do not pay the full bond amount. Instead, you pay a small percentage of that amount as your annual premium. In most cases, premiums fall between 1% and 3% of the required bond amount.
Your exact rate is based on factors such as your personal credit, financial background, industry experience, and licensing history.
How do I get a Louisiana Auto Dealer Bond?
Getting your Louisiana auto dealer bond is a straightforward process:
- Complete a short bond application.
- The surety company reviews your credit and background information.
- Once approved, you pay the quoted premium.
- The bond is issued for filing with the Louisiana Motor Vehicle Commission.
The bond is just one part of the licensing process. To obtain your auto dealer license in Louisiana, you must also:
- Complete the dealer application
- Obtain the required surety bond
- Attend the mandatory training seminar
- Provide proof of garage liability insurance
- Submit zoning verification for your business location
- Install a publicly listed landline telephone
- Pay all required licensing fees
Once your bond and supporting documents are submitted, the Louisiana Motor Vehicle Commission reviews your application and issues licenses according to its district renewal schedule.
Can I get a Louisiana Auto Dealer Bond with bad credit?
Yes, it is possible to get a Louisiana auto dealer bond with less-than-perfect credit.
Surety companies review your credit and financial history to determine your rate, but credit challenges do not automatically prevent you from qualifying. Applicants with stronger credit profiles generally receive lower rates, while those with credit issues may pay a higher premium.
If you have concerns about your credit, you can still apply and receive a quote based on your individual situation.
How fast can I get Louisiana Auto Dealer Bonds?
In many cases, auto dealer bond quotes are provided the same day the application is submitted.
Once approved and payment is made, the bond can typically be issued quickly so you can move forward with your license application or renewal. Processing times may vary depending on your background and the completeness of your application.
Are there any local requirements?
Louisiana auto dealer licenses are issued by district, and renewal dates depend on your assigned district. Some districts renew on even-numbered years, while others renew on odd-numbered years.
In addition to the bond requirement, you must meet state licensing standards related to training, insurance, zoning approval, and maintaining a properly established business location.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
