Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
This bond guarantees the principal will abide by all Louisiana state laws and regulations as well as all laws outlined in Chapter 4 Title 32 of the Louisiana Revised Statutes of 1950.
For Districts 1, 2, 3, bonds expire December 31st of every even year. For Districts 4 and 5, bonds expire December 31st of every odd year.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
This bond remains in full force and effect until cancelled. If the bond is cancelled, the Secretary of the Department of Public Safety and Corrections and the Executive Director of the Louisiana Motor Vehicle Commission must be notified by a written notice of cancellation. Cancellation will become valid 30 days after the notice is received by the Secretary and Executive Director.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
For more licensing information, visit Louisiana’s official site.