Louisiana Dealer Bond

Summary

A Louisiana MVD bond, also known as a Motor Vehicle Dealer bond, is a type of surety bond that is required by the Louisiana Office of Motor Vehicles for individuals or businesses that want to obtain or renew a motor vehicle dealer license. The bond serves as a form of protection for customers against any fraudulent or unethical practices by the motor vehicle dealer. If a dealer engages in such practices, a customer may file a claim against the bond to seek compensation for any resulting damages. The bond amount required by the Louisiana MVD may vary based on the type of license and the dealer's history, and the bond must be renewed periodically to maintain the dealer's license.

What is an Louisiana Car Dealer Bond? 

Louisiana Car Dealer Bonds are required by Louisiana's DOPSACOOMV to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $50,000.  The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

The State requires a Dealer bond for each license you hold:  

Used Motor Vehicle Dealer Bond

Bond amount: $50,000.00

Obligee: Louisiana Used Motor Vehicle Commission

In-State Specialty Motor Vehicle Dealer Bond

Bond amount: $20,000.00 

Obligee: Secretary of the Department of Public Safety and Corrections

New Motor Vehicle Dealer Bond

Bond amount: $20,000.00

Obligee: Secretary of the Department of Public Safety and Corrections

New Motor Vehicle Dealer Used Facility Bond

Bond amount: $10,000.00

Obligee: Secretary of the Department of Public Safety and Corrections

Out-of-State Specialty Motor Vehicle Dealer Bond

Bond amount: $20,000.00

Obligee: Secretary of the Department of Public Safety and Corrections

Recreational Products Dealer Used Facility Bond

Bond amount: $10,000.00

Obligee: Secretary of the Department of Public Safety and Corrections

Recreational Products Dealer Bond

Bond amount: $20,000.00

Obligee: Secretary of the Department of Public Safety and Corrections

Required Expiration Date of the Bond: December 31st 

Different parts of a bond:

 There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee  is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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Program:

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Louisiana MVD Bond Requirements and Information:

APPLICATIONS  Complete and sign all applications. 

· Each dealership must have at least one salesperson.

· IMPORTANT: You must submit an additional fee of $35.00 for each applicant if they have been convicted or pled guilty to a crime other than a traffic violation within the past ten (10) years for a criminal history background check.

EDUCATIONAL TRAINING SEMINAR: 

· Complete and return the attached Educational Training Seminar Registration Form. 

· You will be scheduled for next available date. Dates are available to view on website. 

· One of the following must attend: Owner, general manager, office manager, title clerk, or salesperson

 · Must be registered in order to attend.

SURETY BOND NOTICE: The surety bond must be on the form provided by our office or use the EXACT LANGUAGE contained in the form provided. Copies of completed forms are acceptable. The Surety Bond must have the following information: 

· The amount of coverage must be $50,000.00 

· The bond number must appear on the face of the bond 

· The exact principal’s ownership, trade name of business, and physical address 

· Type of ownership must be marked 

· Effective & Ending Date of Bond 

· Must be held and firmly bound to, the State of Louisiana, through the Louisiana Used Motor Vehicle Commission.

 · Must be in force throughout the license period 

· Signature of the principal of the dealership 

· Signature of Surety 

· Bond Company must have seal on form 

· Power of Attorney must be attached