Used motor vehicle dealers in Louisiana will see an increase in their surety bond amount following the passage of House Bill 271. Signed by Gov. Edwards on May 31, the bill takes effect on August 1, 2016.
Under current law, the required surety bond amount depends on the number of used cars the dealer sold during the preceding 12-month period. Dealers selling more than 120 used vehicles need a $35,000 bond and those selling less than 120 vehicles need a $20,000 bond. HB 271 removes the differentiation in number of vehicles sold and requires all used dealers to post a $50,000 surety bond.
The bond should be for the license period and dealers should submit a new bond or bond continuation certificate to the Louisiana Used Motor Vehicle Commission at the beginning of each new licensing period. To become a licensed used motor vehicle dealer, fill out the application found here and include all information on the checklist. Some of the required information includes the following:
- $400 two-year license application fee
- Salespersons’ applications
- Including $25 one-year licensing fee
- Proof of garage liability insurance
- Proof of rental insurance (if applicable)
- Zoning verification completed by local zoning authorities
- Picture of business sign
- Installed landline business phone
- Surety bond form (copy of completed form is acceptable)
Licenses are valid for a two-year period. All licenses expire on December 31, with the year of expiration depending on the district your parish is in. Licenses in districts 1, 2 and 3 expire in even years, and licenses in districts 4 and 5 expire in odd years. This list can help determine your parish’s district, license expiration date and your administrative coordinator. Late license renewal results in a $100 fee in addition to the $400 renewal fee.
The Commission asks that questions are directed to [email protected] or to your parish’s administrative coordinator. The team at SuretyBonds.com can help you purchase a bond in Louisiana.
