Louisiana Auto Dealer Bonds, and More

How much does an auto dealer bond cost in Louisiana?

Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Louisiana Motor Vehicle Commission as part of the licensing requirements for car dealerships to conduct business in the state. The Motor Vehicle Commission sets the total bond amount based on the type of dealership license:

  • $100,000 bonds for public license tag agents
  • $50,000 bonds for used car dealers
  • $20,000 bonds for new car dealers
  • $20,000 bonds for vehicle facilities and specialty dealers
  • $20,000 bonds for dismantlers and recyclers

The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Louisiana auto dealer bonds typically cost between 1% and 3% of the total bond amount.

During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Louisiana auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.

Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of Louisiana.

  • EZ Surety has issued used car dealer bonds for premiums as low as $715.

Why are auto dealer bonds important in Louisiana?

Louisiana auto dealer bonds provide protection for customers, creditors, and the state government. When a Louisiana motor vehicle dealer posts a surety bond, they provide a guarantee to the bond's Obligee (the Motor Vehicle Commission) that they will conduct business in compliance with the conditions listed in Chapter 6 of Title 32 of the Louisiana Revised Statutes.

If the auto dealer fails to comply with the statutes, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.

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How to get your auto dealer license in Louisiana

To obtain your auto dealer license in Louisiana, you must meet the Louisiana Motor Vehicle Commission licensing requirements by completing the following steps:

  • Complete the application for dealer licensing
  • Post the appropriate surety bond
  • Complete an educational training seminar
  • Provide proof of garage liability insurance
  • Provide a zoning verification form
  • Install a publically listed landline telephone
  • Pay all application and licensing fees

Louisiana auto dealer licenses in districts 1, 2, and 3 have an expiration date of December 31st of even number years. Licenses in districts 4 and 5 expire on December 31st of odd number years.


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