Louisiana Auto Dealer Bond$50K Used / $20K New -- Dual Commission

Louisiana is unique in having two entirely separate regulatory bodies for motor vehicle dealers. The Louisiana Used Motor Vehicle Commission (LUMVC) regulates all used, wholesale, and specialty vehicle dealers under RS 32:781-32:810. The Louisiana Motor Vehicle Commission (LMVC) regulates new/franchise dealers under RS 32:1251-32:1270. Each commission has its own board, its own application process, its own bond form, and its own bond amount. This dual system has been in place for decades.

The $50,000 LUMVC used dealer bond costs $500-$5,000 annually (1-10% of bond amount). Excellent credit (750+) gets $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,500 (2-5%). Fair credit (620-679) ranges $2,500-$3,500 (5-7%). This is the most common bond type in Louisiana because independent used dealers far outnumber franchise dealers.

The $20,000 LMVC new dealer bond costs just $200-$2,000 annually (1-10%). Excellent credit (750+) gets rates as low as $200-$400 (1-2%). Because the bond amount is lower than the used dealer bond, new/franchise dealers pay less for their surety bond even though they typically have higher transaction volumes.

If you are a franchise dealer who also sells used vehicles, you may need to comply with both commissions. The LMVC regulates your franchise operations (RS 32:1254, $20,000 bond), while any used vehicle operations at your facility may fall under the LUMVC (RS 32:791, $50,000 bond). Contact both commissions to determine your specific obligations based on your business structure.

Under both RS 32:791 and RS 32:1254, failure to maintain your surety bond results in immediate license suspension. If you do not provide a replacement bond within 30 days, your license is revoked. You cannot buy, sell, or exchange motor vehicles during the suspension. The bond must run continuously with a new bond or continuation certificate delivered at each license period.

The Louisiana Used Motor Vehicle Commission requires all new applicants for a used dealer license to complete an educational seminar before licensure. The seminar covers Louisiana dealer laws, consumer protection requirements, title processing, and ethical business practices. This requirement is specific to the LUMVC and does not apply to new/franchise dealers under the LMVC.

Louisiana dealer bonds are made payable to the Secretary of the Department of Public Safety and Corrections for the use, benefit, and indemnity of any person who suffers a loss as a result of any dealer violation. This applies to both the $50,000 LUMVC bond and the $20,000 LMVC bond.

Yes. We work with carriers specializing in higher-risk applicants for both the $50,000 used dealer bond and the $20,000 new dealer bond. Even with credit scores below 600, approval is often possible. Rates will be higher (5-10% of bond amount), but we can typically find a solution. The $20,000 new dealer bond is easier to obtain because the lower amount reduces the surety's risk.