Louisiana Used Motor Vehicle Dealer Bond
AmeriPro Surety Bonds | 844-589-9732
Used Auto Dealers – Louisiana
Used auto dealers in Louisiana are regulated by the state’s Used Motor Vehicle Commission.
The Commission grants a license ($400 for the licensing period) with a 2-year term which ends on December 31st. Applicants and renewal applicants must furnish evidence of filing a $50,000 surety bond. The bond’s term must run concurrent with the duration of your license.
Therefore, a bond submitted with an application that runs for a full term has a term of two years.
Qualifying and The Estimated Premium
Qualifying for the $50,000 Louisiana used motor vehicle dealer bond is by completion of a surety bond application.
There will also be a credit inquiry involved. Our agency utilizes a “soft inquiry” which will have no impact on credit scoring; however, the credit score is required to determine whether approval will be granted.
Applicants who with good credit are approved for a full term will pay about 2%, or $1000. For the same applicants who purchase a bond that is not for a full years, the surety bond will be pro-rated as to price.
Once issued, a copy can be sent to you. It is the original surety bond, which you will also sign as principal, that you will want to file with the Commission.
The Purpose of this Bond
The used motor vehicle dealer bond serves several purposes.
- It is a financial guarantee which ensures that all licenses, taxes, title fees will be paid;
- It protects the consumer from loss due to a purchase of a defective vehicle or one sold by fraud;
- It is guarantee that fees and penalties assessed by the Commission will be paid; however such fees will not exceed $25,000;
- It ensures that any attorney costs will be paid.
AmeriPro Surety Bonds is a surety bonds-only agency which provides surety bonds throughout Louisiana and nationwide.
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