Motor Vehicle Dealer Bond in Louisiana

What this bond requires in Louisiana

Louisiana splits dealer regulation between two commissions. New vehicle and recreational product dealers post a $20,000 bond under La. R.S. 32:1254(E)(10)(a). Used motor vehicle dealers post a $50,000 bond using the LUMVC official surety bond form. The bond must be from a surety qualified to do business in Louisiana, runs for the license period, and a continuation certificate or new bond must be on file at each renewal; failure to maintain a bond triggers immediate suspension and revocation if not cured within 30 days.

Who requires it

The motor vehicle dealer bond is required by the Louisiana Motor Vehicle Commission (new dealers) / Louisiana Used Motor Vehicle Commission (used dealers) under La. R.S. 32:1254 (LMVC); La. R.S. 32:783 et seq. (LUMVC).

How to file in Louisiana

Applicants complete the LUMVC (used) or LMVC (new) dealer application packet and submit the executed surety bond on the commission-issued form, along with proof of an established place of business, sales tax registration, applicable fees, and background materials. The original bond is filed with the commission in Baton Rouge before the license is issued.

Official filing form →

Get a real motor vehicle dealer bond quote for Louisiana

Your bond type and state will be pre-filled. No upsell, no pressure.

FAQ

Common questions

Is a motor vehicle dealer bond required in Louisiana?

Yes. Louisiana requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $20,000 to $50,000.

How much is the bond in Louisiana?

The bond amount is $20,000 to $50,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Louisiana Motor Vehicle Commission (new dealers) / Louisiana Used Motor Vehicle Commission (used dealers).

How is the bond filed?

Applicants complete the LUMVC (used) or LMVC (new) dealer application packet and submit the executed surety bond on the commission-issued form, along with proof of an established place of business, sales tax registration, applicable fees, and background materials. The original bond is filed with the commission in Baton Rouge before the license is issued.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.