Increase in Louisiana Auto Dealer Bond Amounts
With the new law in place, the Louisiana auto dealer bond amount increases to $50,000 for all used car dealers in the state. Previously, they had to provide an amount based on the volume of sales they were making. The options were either $20,000 or $35,000.
House Bill 271, which was signed in the end of May, will take effect as of August 1st. Let’s review the main changes for Louisiana used car dealers.
The Louisiana auto dealer bond increase
Until now, Louisiana used car dealers who were selling less than 120 vehicles in the last 12 months were required to obtain a $20,000 bond to get licensed. Those selling more than 120 vehicles in the same timeframe had to provide a higher amount – $35,000.
House Bill 271 unifies the rule for all used car dealers, setting the bond amount to $50,000.
Just like before, the Louisiana auto dealer bond needs to be active, so that the dealer keeps their license. Whenever renewing your license, you also need to renew your bond or obtain a continuation certificate.
Getting your Louisiana used car dealer license
The increased Louisiana auto dealer bond is only one of numerous licensing requirements that used car dealers need to meet. The licensing body is the Louisiana Used Motor Vehicle Commission.
The most important other requirements include zoning papers, liability insurance, business license documents, and payment of the $400 licensing fee for two years. You can find the complete dealer licensing package here.
The license expires every two years, on December 31st. The year depends on the parish you are located in. It’s important to renew it on time, as failure to do so will result in extra costs for your business.
Are you required to get a Louisiana auto dealer bond? You can apply online today with Lance Surety Bonds to get your free quote in no time. Have some questions? We’re here to help. Just call us at 877-514-5146.