Louisiana New Motor Vehicle Dealer Bond
AmeriPro Surety Bonds | 844-589-9732
The “new” motor vehicle dealer bond offered by AmeriPro Surety Bonds concerns dealers who offer new motor vehicles; it is not necessarily for just first time (new) auto dealers. Our agency also offers the $50,000 surety bond required of Louisiana auto dealers who sell used vehicles.
For auto dealers who offer new vehicles, the Louisiana Department of Public Safety And Corrections is the entity requiring the surety bond.
The current surety bond amount of Louisiana dealers of new vehicles is a $20,000 surety bond.
The bond is typically issued for a term to match your dealer license, 2 years; however, you may prepay the bond for 2 years, or you may pay for it annually.
Qualifying for the Bond
Applicants for the Louisiana new motor vehicle dealer bond will complete a standard surety bond application.
As part of the application process, you may be asked:
- Whether you have any unsatisfied liens or judgments;
- Whether you have a current bankruptcy (please note: a current bankruptcy will preclude our agency from getting you bonded);
- And whether you have ever had any bond denied or canceled.
As part of the underwriting process, there will also be a credit inquiry. Our agency uses a “soft inquiry” not a hard inquiry. Soft inquiries do not affect your credit score.
The Bond’s Premium and a Lower Payment Option
The surety bond, along with your new auto dealer license, is issued for a two-year term. A qualified candidate will pay $400 for the Louisiana new motor vehicle dealer bond.
You will be given the option to pay the bond for the full term, or you may pay for the first year only. In this case, the premium is $200; however, the bond is good only for one year. Thereafter, you must renew again for another $200.
Purpose of Your Surety Bond
The bond is a financial guarantee which ensures that you will be in compliance with the sales, repairs, or exchanges of any new motor vehicle sold in Louisiana.
The bond also guarantees that you will comply with all laws and pay for any damages caused to consumers for failure to comply with the law, which in turn, results in some harm.
AmeriPro Surety Bonds is a surety bond-only agency which provides license and permit bonds throughout Louisiana. Our agency also provides surety bonds nationwide.
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