Louisiana Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Louisiana Auto Dealer Bond Key Facts
Governed by La. R.S. 32:791.
The basics
What Is an Auto Dealer Bond in Louisiana?
Yes - Louisiana requires a surety bond to hold a motor vehicle dealer license. A Louisiana auto dealer bond is a promise that you will follow the state’s motor-vehicle sales laws, pay the taxes and fees you collect, and deliver clean title to your buyers. Used motor vehicle dealers must post a $50,000 bond with the Louisiana Used Motor Vehicle Commission (LUMVC) under La. R.S. 32:791; new and franchise dealers post a $20,000 bond with the Louisiana Motor Vehicle Commission (LMVC) under La. R.S. 32:1254.
Good to know - The bond amount depends on your license type. Used motor vehicle dealers post a $50,000 bond, regulated by the Louisiana Used Motor Vehicle Commission (LUMVC). New and franchise dealers post a $20,000 bond, regulated by the Louisiana Motor Vehicle Commission (LMVC). The bond runs with your license and must never lapse.
The bond does not protect you. It protects your buyers and the state. If you break the sales rules - for example, you fail to pass on sales tax or you do not deliver a clean title - someone who loses money can make a claim against your bond, up to the bond amount.
Which bond you need depends on what you sell. If you sell used vehicles, the LUMVC licenses you and requires a $50,000 bond. If you are a new-car or franchise dealer (Ford, GM, Toyota, and the like), the LMVC licenses you and requires a $20,000 bond.
The used-dealer bond is a continuing bond. It stays in force alongside your license and cannot lapse. If it is canceled and you do not replace it in time, the LUMVC revokes your license.
Qualification
What You Need to Qualify for a Louisiana Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- An established, properly zoned place of business in Louisiana - confirm zoning before you apply.
- A $50,000 surety bond for a used-dealer license (or $20,000 for a new or franchise dealer license) that stays active for as long as you are licensed.
- Garage liability insurance that covers every vehicle you offer for sale.
- A completed Used Motor Vehicle Dealer License Application with the required fees.
- Business registration or entity documents and a government-issued photo ID for each owner.
- Disclosure of any non-traffic criminal conviction or guilty plea in the past 10 years (an extra $35 fee applies per applicant).
Step by step
How to Get an Auto Dealer Bond in Louisiana: Step by Step
Confirm your license type and bond amount
Decide whether you sell used or new vehicles. Used dealers are licensed by the LUMVC and need a $50,000 bond (La. R.S. 32:791). New and franchise dealers are licensed by the LMVC and need a $20,000 bond (La. R.S. 32:1254).
Set up a zoned place of business
The LUMVC requires an established location that is properly zoned for a dealership before you apply. Check zoning with your local government first, because a rejected location is a common cause of delay.
Get garage liability insurance
Louisiana law requires used motor vehicle dealers to carry garage liability insurance that covers all vehicles offered for sale, and to keep it in force for as long as you are licensed.
Buy your surety bond - we issue and file it for you
Buy your $50,000 used-dealer bond (or $20,000 new-dealer bond) through Market Canopy. We issue it on the official commission bond form and can file it with the commission for you, so there is no bond form for you to complete. Start your quote above to see your premium.
Complete and submit your license application
Fill out the Used Motor Vehicle Dealer License Application and submit it to the LUMVC with your $400 license fee, proof of your bond and insurance, and your supporting documents.
Used Motor Vehicle Dealer License ApplicationKeep your bond and insurance active to stay licensed
Your license and bond run together and renew on a two-year cycle ending December 31. Renew on time and keep your bond and garage liability insurance in force so your license is not suspended or revoked.
Paperwork
Louisiana Dealer Bond Forms & Documents
The main used-dealer license application - you complete and submit this to the LUMVC.
View formThe LUMVC’s official checklist of everything a new used dealer must submit.
View formThe official used-dealer bond form. Market Canopy issues this and files it with the commission for you - you do not fill it out.
View formYou'll also need
Cost
How Louisiana Auto Dealer Bond Pricing Works
You do not pay the full bond amount. The $50,000 (used) or $20,000 (new) figure is the coverage amount - the most the bond can pay out. What you pay is a premium, which is a small percentage of that coverage amount.
Your premium depends on the bond amount and on underwriting factors such as your credit. Start a quote above for your exact price. The LUMVC license and salesperson fees are separate from the bond premium.
Worked example
For a used-dealer license, the required bond is $50,000. You do not pay $50,000 - you pay a premium set as a percentage of that amount. For example, a dealer approved at a 1% rate would pay about $500 for the bond term. This is only an illustration; your actual rate depends on underwriting and is not a quote.
Filing
Filing Information
Louisiana Used Motor Vehicle Commission (LUMVC)
Filing notes
Louisiana used-dealer bonds are continuing bonds. The $50,000 bond runs at the same time as your license and must stay active with no lapse. If it is canceled and you do not replace it before the cancellation date, the LUMVC revokes your license (La. R.S. 32:791).
Market Canopy issues your bond on the official LUMVC $50,000 bond form and can file it with the commission for you, so you do not fill out or file the bond form yourself.
The most the surety can pay out on a used-dealer bond in any one calendar year is $50,000 (La. R.S. 32:791).
New and franchise motor vehicle dealers are licensed by the Louisiana Motor Vehicle Commission (LMVC) and post a $20,000 bond under La. R.S. 32:1254, made payable to the secretary of the Department of Public Safety and Corrections.
FAQ
Louisiana Auto Dealer Bond FAQ
Yes. Used motor vehicle dealers must post a $50,000 bond with the LUMVC under La. R.S. 32:791. New and franchise dealers must post a $20,000 bond with the LMVC under La. R.S. 32:1254.
The coverage amount is $50,000 for a used-dealer license and $20,000 for a new or franchise dealer license. You do not pay that amount - you pay a premium, which is a percentage of it. Start a quote above to see your price.
The Louisiana Used Motor Vehicle Commission (LUMVC) requires the $50,000 bond for used dealers. The Louisiana Motor Vehicle Commission (LMVC) requires the $20,000 bond for new and franchise dealers. The two licenses are separate.
It is a continuing bond. It runs at the same time as your license, renews on a two-year cycle ending December 31, and must stay active with no lapse. If the bond is canceled and not replaced in time, the LUMVC revokes your license.
Yes. We issue your bond on the official commission bond form and can file it with the commission for you, so you never have to complete or file the bond form yourself.
For a used-dealer license you also need an established, properly zoned place of business, garage liability insurance covering all vehicles for sale, a completed license application, and the $400 license fee.
The initial used motor vehicle dealer license fee is $400, plus $25 per salesperson license. An extra $35 fee applies for each applicant with a non-traffic criminal conviction in the past 10 years. These state fees are separate from your bond premium.
The LUMVC processes a used-dealer application in about 14 business days after it receives your complete application, requirements, and fees. Timing through the LMVC for new and franchise dealers is not published - confirm with that commission.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Louisiana Used Motor Vehicle Commission (LUMVC) before you file. This page is informational and not legal advice.
FAQ
Louisiana Auto Dealer Bond Questions
The cost of a Louisiana auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Louisiana auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Louisiana license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
