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Louisiana Motor Vehicle Dealer Bond

Louisiana Motor Vehicle Dealer Bond

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Who Requires the Motor Vehicle Dealer Bond and Why Is It Needed?

Salesman. Motor Vehicle Dealer Bond for auto dealers or others who buy, sell, auction, or repair cars or other motor vehicles.

Surety bonds must be posted for those operating motor vehicle dealers and other motor vehicle facilities in the State of Louisiana. Bonds are for the benefit of the Louisiana Motor Vehicle Commission. Surety bond amounts are outlined below and specific requirements are based on business type and sales volume. 

  • $50,000 surety bond for Used Vehicle Dealers 
  • $20,000 surety bond for New Vehicle Dealers
  • $20,000 surety bond for Vehicle Facilities and Specialty Dealers
  • $20,000 or $30,000 surety bond for Dismantler / Recyclers
  • $5,000 surety bond for Inspection Stations
  • $100,000 surety bond for Public License Tag Agents

How Much Will My Surety Bond Cost?

Take 2 minutes to provide the basic information required to get the best rates for your Louisiana Motor Vehicle Dealer Bond. The quote request is free and there is no obligation to you. If you prefer, please call 1‐800‐608‐9950 to speak with one of our friendly bond experts. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

If you are interested in spreading out the cost of your bond over time, we can offer convenient financing plans for many types of surety bonds. More information will be provided with your quote.

What Does the Bond Protect Against?

The surety bond ensures lawful business practices and compliance with applicable rules and regulations set out in Chapters 4 and 6 of Title 32 of the Louisiana Revised Statutes of 1950. Among other requirements, the bonded principal must comply with contracts and laws related to the sale, repair or exchange of vehicles. The dealer or facility must also adhere to licensing, tax, title and registration guidelines.  

In a situation where the bonded customer (principal) fails to comply with surety bonding terms and requirements, the surety company is financially obligated to cover damages up to the bond amount or penal sum of the surety bond. As with all surety bonds, the principal agrees to indemnify the surety for any such losses paid to third parties.

List of Louisiana surety bonds.

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