Louisiana Auto Dealer Bond
Two Separate Commissions — $50K Used / $20K New
Louisiana is the only state in America with two entirely separate commissions regulating motor vehicle dealers. The LUMVC handles used dealers ($50,000 bond under RS 32:791). The LMVC handles new/franchise dealers ($20,000 bond under RS 32:1254). Each commission has its own board, application, and bond form. Filing with the wrong commission delays your license. Get an instant quote for either bond -- BuySuretyBonds.com offers every bond type in one place.
LUMVC vs. LMVC: Side-by-Side Comparison
Two completely separate regulatory commissions
| Requirement | LUMVC (Used Dealers) | LMVC (New/Franchise) |
|---|---|---|
| Bond Amount | $50,000 | $20,000 |
| Governing Statute | RS 32:791 | RS 32:1254 |
| Pre-Licensing Seminar | Required | Not required |
| Regulates | Used, wholesale, specialty | New/franchise dealers |
| Bond Payable To | Secretary, Dept. of Public Safety | Secretary, Dept. of Public Safety |
| Lapse Consequence | Immediate suspension; 30-day revocation | Immediate suspension; 30-day revocation |
| Premium Range | $500-$5,000/yr | $200-$2,000/yr |
Franchise dealers selling used vehicles may need both bonds -- contact both commissions.
Sources: RS 32:781-810 (LUMVC), RS 32:1251-1270 (LMVC)
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Official Louisiana Requirements
"Every applicant for licensure or renewal of a license as a used motor vehicle dealer shall show proof of responsibility by depositing with the commission a continuing bond in the amount of fifty thousand dollars."Louisiana Used Motor Vehicle Commission • RS 32:791
The Only State With Two Separate Dealer Commissions
Every other state in America uses a single agency — typically the DMV or a unified motor vehicle commission — to regulate all dealer types. Louisiana alone maintains two independent regulatory bodies, each with its own appointed board of commissioners, its own staff, its own office, and its own statutory authority. For an overview of how surety bonds work across industries, see our surety bond guide.
The practical impact: your bond form, application packet, and fees all depend on which commission regulates your business. A used dealer who files a $20,000 LMVC bond instead of the $50,000 LUMVC bond will have their application rejected. Louisiana's neighbor Mississippi also splits oversight between MMVC and DOR, but Louisiana's system is unique in having two fully independent commissions. Use our auto dealer bond calculator to estimate your premium for either commission. To understand the difference between a bond and an insurance policy, see our bond vs. insurance guide.
Franchise Dealers Selling Used Vehicles
If you hold a new vehicle franchise but also sell used vehicles, your used vehicle operations may require separate licensing through the LUMVC with a $50,000 bond, in addition to your $20,000 LMVC bond. Contact both commissions to confirm your requirements before applying.
Bond Cost by Commission
Licensing Requirements by Commission
Each commission has its own checklist. Louisiana contractors also need a Louisiana contractor license bond, and notaries need a Louisiana notary bond.
LUMVC — Used Dealer Checklist
- Complete LUMVC used motor vehicle dealer license application
- $50,000 surety bond per Louisiana Revised Statutes 32:791
- Garage liability insurance ($100,000/$300,000 bodily injury, $50,000 property damage)
- Established place of business with permanent sign
- Valid Louisiana sales tax registration
- Business entity filing with Louisiana Secretary of State
- Criminal background check for all owners and managers
- Completion of LUMVC pre-licensing educational seminar
- Facility inspection and zoning approval
- Proof of workers' compensation coverage (if applicable)
LMVC — New/Franchise Dealer Checklist
- Complete LMVC new/franchise motor vehicle dealer application
- $20,000 surety bond per Louisiana Revised Statutes 32:1254
- Valid franchise agreement with manufacturer or distributor
- Garage liability insurance meeting state minimums
- Established place of business per franchise agreement specifications
- Business entity registration with Louisiana Secretary of State
- Background investigation for all principals
- Compliance with franchise-specific facility requirements
Bond Details
How to Navigate the Dual-Commission Process
The correct process depends entirely on which commission regulates your dealer type. For a general walkthrough, see how to get a surety bond.
Determine Your Commission
Used, wholesale, or specialty dealers apply through the LUMVC ($50,000 bond). New/franchise dealers apply through the LMVC ($20,000 bond). If you sell both new and used at the same facility, contact both commissions to determine whether you need dual licensing.
Get Your Bond and Complete Pre-Requisites
Apply online for your bond -- we issue both LUMVC and LMVC bond forms. LUMVC applicants must also complete the mandatory pre-licensing educational seminar before their application will be accepted. Gather insurance, business registration, and facility documentation.
Submit to Your Commission
File your complete application packet with the appropriate commission. The bond must be from a surety authorized to do business in Louisiana. Allow 4-8 weeks for processing, background checks, and facility inspection.
Maintain Continuous Coverage
Both commissions require uninterrupted bond coverage. A lapse triggers immediate license suspension, with revocation after 30 days. We send renewal reminders 60 days before expiration to prevent any gap in coverage.
Need Both LUMVC and LMVC Bonds?
We handle both commissions. Tell us your dealer type and we will issue the correct bond form for the correct commission — or both if you need dual licensing. See our dealer bond cost breakdown for premium details.
Bond Filing Details for Louisiana Dealers
Louisiana Dual-Commission Bond Questions — Answered
Specific to Louisiana's unique two-commission system, the LUMVC, and the LMVC.
Why does Louisiana have two completely separate dealer commissions?
Louisiana is the only state in the U.S. with two entirely separate regulatory commissions 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 of commissioners, its own application process, its own bond form, and its own bond amount. This dual system has been in place for decades and reflects Louisiana's distinct civil law tradition.
How much does the $50,000 LUMVC used dealer bond cost?
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.
How much does the $20,000 LMVC new dealer bond cost?
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.
What if I sell both new and used vehicles at the same location?
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 may fall under the LUMVC (RS 32:791, $50,000 bond). Contact both commissions to determine your specific obligations based on your business structure.
What happens if my Louisiana dealer bond lapses?
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 renewal.
What is the LUMVC pre-licensing seminar?
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.
Who is the Louisiana dealer bond payable to?
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.
Can I get a Louisiana dealer bond with bad credit?
Yes, 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 through specialized surety carriers. 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.
Related Louisiana Bonds
Official Louisiana Resources
Auto Dealer Bonds in Neighboring States
Other Louisiana Bonds
Additional surety bonds available in Louisiana
Stop Guessing Which Commission — We Handle Both
Whether you need the $50,000 LUMVC bond or the $20,000 LMVC bond (or both), we issue the correct form for the correct commission. Same-day approval on all credit types.
Get Your Auto Dealer Bond Quote
Same-day DMV approval available • All dealer types
Pay only after your bond is issued • No obligation • 2 minutes