Calling All Louisiana Dealers: Time to Renew Your Bonds
Less than two months remain till the end of the year, which marks an important deadline for all Louisiana auto dealers. In order to remain in compliance into the next year, they have to renew their auto dealer license and their auto dealer bond along with it.
Although you probably have prior experience with Louisiana auto dealer bond renewal, there are usually some areas that remain unclear. The following information will try to remedy that.
Who needs to renew their auto dealer license?
The renewal requirement applies to all licensed dealers in Louisiana, whether they are new-car or used-car dealers. The state mandates that all licenses expire by Dec. 31 and therefore a renewal application needs to be submitted before that date. Any application filed after that date will be subject to a $100 fine.
Why do I have to renew my Louisiana auto dealer bond?
The auto dealer bond is an inseparable part of the license and is also set to expire at the same date. In order for your license to be valid, you have to renew the bond as well.
We remind you that auto dealer bonds are not the same as your insurance – bonds are required by the state to serve as protection for your customers in case you are not being honest in your business practices. We recommend you read our dedicated page on what is a surety bond.
How do I renew my auto dealer bond?
This part is a no-brainer. If you already have a bond in place, most likely the bonding agency will contact you with a renewal quote. If they don’t do that, you can contact them or choose a different surety agency to work with. You will then be asked to sign the bond form and hand it to the surety agency who will file it for you.
There is still a bit of time left before the renewal is due, so why not shop around and see if you can get a lower bond quote? Lance Surety Bonds offers the lowest rates nationwide and we can give you an instant online bond quote, entirely free of charge.
How much does auto dealer bond renewal cost?
Surety bond costs are mostly based on the applicant’s personal credit score, so if there isn’t a change in yours, your bond renewal premium will likely be the same as last year. Premiums are a certain percentage (between 0.75% and 10%) of the total bond amount set by the state. In Louisiana, depending on what kind of dealer you are, you will have a different total bond amount. The amount for new-car dealers stays the same, though in 2016 Louisana increased the bond amount for used-car dealers, so they are now as follows:
- $20,00 for New-Car Auto Dealers;
- $50,000 for Used-Car Dealers
You probably remember that up until this year, the requirement for used-car dealers was either $20,000 or $35,000, based on the number of vehicles sold. It’s important to be aware that the new $50,000 is already in effect.
Is there something I can do to reduce my premiums?
Although credit scores are what matters the most in determining your premiums, some other factors come into play as well.
Bond underwriters look very favorably upon liquid assets and strong financial statements, business or personal. They also tend to reduce premiums for people who have prior industry experience, so if you have been a dealer or a salesperson for a long time, you can include that in your application.
Renew Your Bond with Lance Surety Bonds
A final tip we can offer is to choose to renew your Louisiana auto dealer bond with us. We offer fast approval and we can get you the lowest possible rates thanks to the many partnerships we have established over the years. We only work with the most reputable bond underwriters in the U.S. which guarantees that the state of Louisiana will accept your bond. We will also make sure that you never have to worry about renewal again, as we will send you reminders ahead of time.
Ready to start your surety bond renewal? All you have to do is get a FREE bond quote and we’ll take you through the rest. Looking forward to working together!