Louisiana Car Dealer Bonds

New and specialty motor vehicle dealers are required by the Louisiana Motor Vehicle Commission to have a bond in the amount of $20,000. Used motor vehicle dealers must have a $50,000 bond, as required by the Louisiana Used Motor Vehicle Commission. It is important to note that these are two different obligees with differing requirements.

What Will a Car Dealer Bond Cost You?

A bond allows you to get full coverage for only a fraction of the price. When you choose Jet, we search to get rates as low as possible for you.

Bonding in Louisiana could cost you as low as $11 on a monthly basis, $112 for one year and $196 for two. If you are a franchise or specialty dealer, and $28 monthly or $490 every 2 years if you are a used auto dealer.

Bond Type Bond Cost*
Monthly | 2 Year Term
$50,000 Used Vehicle Dealer $28 | $490
$20,000 New Vehicle Dealer $11 | $196
$20,000 Specialty Vehicle Dealer $11 | $196
Motor Vehicle Dealer Bond
Price Tier
Monthly | Annual
$12 | $125
$21 | $250
Credit Repair
$47 | $599
*The cost of the surety bond is based on many factors such as personal credit of the dealer, type of dealership, etc. Not all available price tiers are reflected in the above chart, and prices are not a guarantee as underwriting approval is required.

Why Do Auto Dealers Need a Bond?

Auto dealers have certain legal standards that must be upheld when starting and maintaining a business. Bonds are required in the case they fall short of these standards. The bond will cover any monetary losses to the customer because of poor business handling on the dealer’s end. However, since the surety has covered the consumer, the dealer will then have to pay back the surety in the amount of the claim.

You can apply for a bond by selecting Apply Now below next to the bond type you need.

Bond Applications for Louisiana Dealers

Motor Vehicle Dealer Bond

Length of a Motor Vehicle Dealer Bond.

Both new and used licensed auto dealers must have a license in place for a two-year term.

For used dealers, the Louisiana Used Motor Vehicle Commission requires bond coverage throughout the length of the licensing period. License terms are two years which end on December 31st. The location of your dealership will determine which district you are part of and which year your license will expire. For example, the Louisiana Used Motor Vehicle Commission is currently issuing licenses valid until December 31, 2020 for Districts 1, 2, and 3.

For new and specialty dealers, the Louisiana Motor Vehicle Commission mandates a bond be in place concurrent to the two-year licensing period as well. However, the expiration date of these licenses is NOT the same for all dealers. For example, one dealer might have a license expiration date of June 2021 and another might have an expiration date of September 2021. Dealers located in districts 1, 3, 5, and 7 have licenses that expire on even-numbered years, while dealers located in districts 2, 4, 6, and 8 will have licenses expiring on odd-numbered years.

Bonds are correlated to the license period, ending the same date as the license. Bond coverage can be extended through a continuation certificate for any following years.

How to Know Which District You are Located In?

It is important to be aware of the district you are located in so you can be best prepared for when your license, along with your surety bond, will expire.


Even Numbered Years Odd Numbered Years