What is a Louisiana Motor Vehicle Dealer Bond?
Get bonded. Get licensed! APPLY TODAY!
There are different types of motor vehicle dealers in the State of Louisiana that are obligated to acquire this surety bond.
If you belong to any of the class of motor vehicle dealers below, read on to learn more about this surety bond and how to easily apply for one:
- New motor vehicle dealer
- Used motor vehicle dealer
- Specialty vehicle dealer
A Motor Vehicle Dealer Bond is a surety bond that is required by the Louisiana Motor Vehicle Commission before a license is issued to a new motor vehicle dealer, used motor vehicle dealer, and specialty vehicle dealer.
The surety bond’s purpose is to ensure that the license applicant will comply with the relevant laws and rules once licensed. It will also be conditioned that the surety bond will indemnify any person who has been harmed by the Principal of the surety bond’s unlawful actions such as failure to fulfill its contractual duties.
The prerequisite is in line with Section 32:1254 of the Louisiana Revised Statutes.
What is the Motor Vehicle Dealer Bond?
$20,000 – New Motor Vehicle Dealer
$50,000 – Used Motor Vehicle Dealer
$20,000 – Specialty Vehicle Dealer
Your bond premium will depend on your credit score. Those who have an excellent credit score will be able to pay as little as 1% of the bond amount!
How can I get a Motor Vehicle Dealer Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete before submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
What are the surety bond conditions?
- A Louisiana-authorized surety bond company or agent should issue the surety bond
- The surety bond should be written in a form that is approved by the Louisiana Motor Vehicle Commission
- The surety bond should be made payable to the Secretary of the Louisiana Department of Public Safety and Corrections Office of Motor Vehicles
- The licensee should obey the provisions of Title 32 of the Louisiana Revised Statutes, the rules and regulations of the Louisiana Motor Vehicle Commission, and the Louisiana Department of Public Safety and Corrections Office of Motor Vehicles
- If a violation is committed by the licensee, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond should run concurrently with the license period and should be renewed at the start of the new one
Get your surety bond immediately! APPLY TODAY!