Louisiana Auto Dealer License Guide

An auto dealer license is a legal requirement for a person or business to sell vehicles in Louisiana.

The Louisiana Motor Vehicle Commission is the regulatory body that oversees the issuance of auto dealer licenses in the state. In this page, we will provide all the important details related to obtaining an auto dealer license in Louisiana.

Your application license will differ if you’re applying for a new or used vehicle license. Within those applications, simply mark which specific type for you require.

Do you sell or buy cars in auction? Learn how to get a car auction license in Louisiana.

To begin, you must have a permanent location meeting the following requirements:

• You must have a location which is owned or leased, and where the books and records required for the conduct of the business are maintained and kept.
• Your location must have a permanently affixed sign with the exact trade name placed in front of the business and clearly visible from the street or roadway. The minimum size is 4’x4’. A picture must be provided with your application.
• You must have an installed and  listed landline phone.

You must provide proof that you meet all local zoning laws and municipal requirements. Details of these requirements can be obtained through the relevant local agencies.

At least one owner, general manager, office manager, title clerk, or salesperson must attend a seminar. The registration form is included with the PDF of the application

You’ll need to provide garage liability insurance with minimum coverage of $55,000.

Auto Dealer Insurance

There are several types of insurance coverages that are recommended for auto dealers, but the recommended coverage will vary based on your business and personal needs.

If you’d like to learn more about all of the insurance coverages available to you, please read our auto dealer insurance guide.

The cost of an auto dealer bond is a small percentage of the total bond amount. The bond cost varies depending on your financial strength, e.g. personal credit. You can also take a look at our most frequently asked surety bond questions.

• Fill out our online application form to obtain a free bond quote for your auto dealer license. It takes 5 minutes and you will be able to lock your rate for the next 90 days (in case you want to purchase the bond).

All dealers must obtain a bond to get licensed. The bond form is included in the dealer license application.

Bond Amount Required:

• $20,000 (if you sell 119 units or less in a twelve-month period)
• $35,000 (if you sell 120 units or more in a twelve month period)