The Louisiana Used Motor Vehicle Dealer Bond (MVD Bond) is required by the Louisiana Used Motor Vehicle Commission (UMVC) on behalf of all entities that sell or deal five or more used motor vehicles in one year. This bond is also a licensing requirement for used auto dealers in order to operate within the state.
This surety bond consists of three parties: the principal (used motor vehicle dealer), the obligee (UMVC), and the surety company. The surety provides financial assurance that the principal will fulfill their obligations and adhere to licensing laws.
If a used vehicle dealer operates fraudulently or doesn’t adhere to state laws, the injured party may file a claim against the principal’s bond. After an investigation into the validity of the claim, the surety may compensate the injured party up to the full bond amount.
You should know that, unlike typical insurance policies, surety bonds hold the principal accountable for reimbursing the surety company for any claims and associated expenses.
To obtain a license to operate in the State of Louisiana, a used motor vehicle dealer must post a Louisiana Used Motor Vehicle Dealer Bond.
Louisiana Revised Statutes define a used motor vehicle dealer as an individual whose occupation is to advertise, display, sell, or offer for sale used motor vehicles, specialty vehicles, or recreational products.
Generally speaking, Louisiana auto dealers include all those who trade used or new vehicles, franchise dealerships, and motor vehicle facilities. All categories of dealerships are required to have a Louisiana Auto Dealer Bond in effect.
The Louisiana Used Motor Vehicle Dealer Bond has a bond amount of $50,000, but the good news is that you are not required to pay the full amount. You will pay a small percentage of the full bond amount, called a premium. The premium rate is determined by your credit score and experience. It is important to note that this soft credit check will not affect your credit score.
Applicants with excellent credit scores and industry experience may receive quotes as low as 1% of the bond amount. Even if you have nonstandard credit, we encourage you to apply for your bond. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.
The obligee, or entity that requires the Louisiana Used Motor Vehicle Dealer Bond, is the Louisiana UMVC. Below is their contact information:
State of Louisiana
Louisiana Used Motor Vehicle Commission
3132 Valley Creek Drive
Baton Rouge, LA 70808
Phone: (225) 925-3870
Fax: (225) 925-3869
It's quick, easy, and free to obtain a quote for your LA Used Motor Vehicle Dealer Bond with EZ Surety Bonds. Simply fill out our quick online form, and one of our friendly surety experts will get back to you within 24 hours with your free quote.
Our surety experts are always happy to assist. If you have any questions, please contact us at bonds@southcoastsurety.com or call us at 1-800-361-1720.
As a used motor vehicle dealer in the State of Louisiana, you must meet the following requirements:
The Louisiana Used Motor Vehicle Dealer License is effective for a duration of two years, and its expiration date falls on December 31 of every other year. The Salesperson License, however, must be renewed annually.
The Louisiana Used Motor Vehicle Dealer Bond has a required bond amount of $50,000, but the cost varies depending on your credit score and years in business. Individuals with excellent credit scores and sufficient industry experience may obtain this bond for as low as 1% of the bond amount.
Fortunately, we work with a variety of surety markets to offer competitive quotes. Because the credit check will not hurt your credit score, we encourage you to apply for your bond, even if you have nonstandard credit.
After you purchase your bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal), although some obligees may approve of an electronic copy. Every obligee has its own unique filing requirement, so be sure to confirm your obligee's filing requirements before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
