Louisiana Motor Vehicle Dealer Surety Bond
A Louisiana motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles within the State of Louisiana. Louisiana is unique in that it operates two separate regulatory commissions: the Louisiana Motor Vehicle Commission (LMVC) for new (franchise) dealers, and the Louisiana Used Motor Vehicle Commission (LUMVC) for used vehicle dealers, daily rental dealers, rent-to-purchase dealers, and vehicle auction dealers. Bond amounts range from $10,000 to $50,000 depending on the license type. Surety One, Inc. offers quick, no-hassle underwriting for all Louisiana motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
Louisiana Revised Statutes Title 32, Section 1254 (LMVC Act) and R.S. 32:791 (LUMVC Act) require all motor vehicle dealer license applicants to file a surety bond. The bond is made payable to the Secretary of the Department of Public Safety and Corrections for the use, benefit, and indemnity of any person who suffers loss as a result of a dealer’s violation.
LMVC — New (Franchise) Dealer Bonds
| Bond Amount | License Type | Description |
|---|---|---|
| $10,000 | New Motor Vehicle Dealer | Franchise dealer selling new and used motor vehicles |
| $10,000 | Motor Vehicle Lessor | Leases motor vehicles to the public |
| $20,000 | Specialty Vehicle Dealer | Franchise dealer selling specialty vehicles (excludes motor homes) |
| $10,000 | Recreational Products Dealer | Franchise dealer selling recreational products |
LUMVC — Used Dealer Bonds
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | Used Motor Vehicle Dealer | Sells used motor vehicles to the public or other dealers |
| $50,000 | Used Motor Vehicle Facility | Facility operated by a new dealer for used vehicle sales |
| $50,000 | Daily Rental Dealer | Rents motor vehicles on a daily or short-term basis |
| $50,000 | Rent With Option to Purchase | Rents vehicles with an option for the renter to purchase |
| $50,000 | Used Vehicle Auction Dealer | Conducts wholesale or public used vehicle auction sales |
| $50,000 | Motor Vehicle Broker | Arranges or facilitates the sale of used motor vehicles |
Important — Two Separate Commissions: Louisiana is the only state with two distinct regulatory bodies for motor vehicle dealers. New (franchise) dealers are licensed by the LMVC in Metairie. Used dealers, rental dealers, rent-to-purchase dealers, brokers, and auction dealers are licensed by the LUMVC in Baton Rouge. You must apply to the correct commission for your license type.
Who Needs This Bond?
Any person or entity whose business involves the sale, lease, rental, brokering, or auctioning of motor vehicles in Louisiana must be licensed and bonded. A separate license is required for each place of business.
- New (franchise) motor vehicle dealers — LMVC
- Motor vehicle lessors — LMVC
- Specialty vehicle dealers — LMVC
- Recreational products dealers — LMVC
- Used motor vehicle dealers — LUMVC
- Daily rental dealers — LUMVC
- Rent with option to purchase dealers — LUMVC
- Used vehicle auction dealers — LUMVC
- Motor vehicle brokers — LUMVC
How Much Does the Bond Cost?
The cost of a Louisiana motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by underwriting factors including credit score, financial strength, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Louisiana Dealer License Requirements
In addition to the surety bond, both commissions require the following (requirements vary by commission and license type):
- Completed dealer license application with applicable fees
- Dealer educational training seminar completion
- A permanently enclosed building meeting local zoning requirements
- A sign visible from the street (LUMVC: minimum 4’ × 4’) with exact business trade name
- Landline business telephone listing (LUMVC)
- Local zoning authority verification
- Garage liability insurance: $55,000 minimum (LUMVC used dealers); 100/300/50 (rent-to-purchase); 15/30/25 (daily rental)
- Criminal background check (if applicable)
- Registration with the Louisiana Secretary of State (if corporation, LLC, LP, or LLP)
- Franchise agreement (new/franchise dealers only)
Note: The company name on the bond must read exactly as it does on the application, including entity name and DBA.
Filing, Renewal & Cancellation
LUMVC bonds expire on December 31st on a two-year (biennial) cycle. LMVC bonds are filed for the license period with annual premium payments. A new bond or continuation certificate must be delivered at the beginning of each license period. The aggregate liability of the surety in any one year shall not exceed the bond amount. Failure to maintain the bond results in immediate license suspension. If proof of a replacement bond is not furnished within 30 days, the license is revoked.
Bond Claims
A claim may be filed by any person who suffers loss as a result of a dealer’s violation, including failure to comply with written contracts or violation of Louisiana statutes. The surety will investigate and pay valid claims up to the full bond amount per year.
Louisiana Motor Vehicle Commission (LMVC)
New/Franchise Dealers
3519 12th Street, Suite 5-B, Metairie, LA 70002
Phone: (504) 838-5207 | Web: lmvc.la.gov
Louisiana Used Motor Vehicle Commission (LUMVC)
Used Dealers, Rental, Auction & Brokers
3132 Valley Creek Drive, Baton Rouge, LA 70808
Phone: (800) 256-2977 | Web: lumvc.louisiana.gov
Surety One, Inc. is the Louisiana surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for both LMVC and LUMVC bonds and all other license bond classes. Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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