Motor Vehicle Dealers - Used Vehicles Only

The Louisiana Used Motor Vehicle Dealer Bond is a $50,000 surety bond required by the State of Louisiana for businesses engaged in the sale of used motor vehicles. This bond serves as a financial guarantee that the dealer will comply with all applicable state laws, regulations, and licensing requirements governing used vehicle sales.

Used motor vehicle dealers operating in Louisiana must obtain this bond as part of their licensing requirements. The bond protects both consumers and the State of Louisiana from financial losses that may result from the dealer's failure to comply with state regulations, fraudulent business practices, or violations of consumer protection laws.

The bond amount is set at $50,000 and has a one-year term that must align with the dealer's license period. Most bonds follow a common expiration date of December 31st and are renewable annually. Dealers operating multiple locations may be subject to additional financial documentation requirements, including business and personal financial statements from the owner.

To obtain this bond, applicants must complete a signed application with business and personal indemnity agreements and provide a clean credit report. The bond ensures that consumers have recourse for financial damages resulting from the dealer's misconduct or failure to fulfill their obligations under Louisiana's motor vehicle dealer regulations.