Louisiana Motor Vehicle Dealer License Requirements – 2025 Overview

1. Who regulates dealers in Louisiana?

Louisiana regulates dealers through two main bodies:

• Louisiana Motor Vehicle Commission (LMVC) – primarily regulates new motor vehicle dealers and related franchises.
  Official site: https://www.lmvc.la.gov/
• Louisiana Used Motor Vehicle Commission (LUMVC) – regulates most used motor vehicle dealers, rent-to-own dealers, automotive dismantlers, certain auctions, and related businesses.
  Official site: https://lumvc.louisiana.gov/

Each commission publishes its own rules, forms, and dealer packets. Be sure to use the correct packet for your business type (new vs. used).

2. Dealer license types in Louisiana

Louisiana recognizes multiple dealer license categories, including:

• New motor vehicle dealers (regulated by LMVC).
• Used motor vehicle dealers (regulated by LUMVC).
• Rent with option to purchase dealers.
• Daily rental dealers.
• Automotive dismantlers and parts recyclers.
• Used parts and accessories dealers.
• Auction dealers and related licensees.

The LUMVC used dealer packet explains which forms and requirements apply to each used license category.

3. Business location and facility standards (used dealers)

Used dealers licensed by LUMVC must have an established place of business that meets the commission’s standards.

• A location that is owned or leased and regularly occupied by the licensee.
• An office where records are kept and customers can be served.
• Display space for vehicles offered for sale, as required by the commission.
• Compliance with local zoning and occupancy rules.
• Readiness for an inspection by the commission before approval.

4. Business setup, bond, and insurance

4.1 Entity and tax registration

• Form your entity (sole proprietorship, partnership, LLC, corporation, etc.).
• Register with the Louisiana Department of Revenue for sales and use tax.
• Obtain a Federal Employer Identification Number (FEIN) where required.

4.2 Surety bond (typical amounts)

Louisiana requires dealers to provide a surety bond. For many used dealers, current guidance references:

• Bond amount of $20,000 for dealers selling below a specified annual volume.
• Bond amount of $35,000 for higher-volume used dealers.

These amounts can change, and certain categories may have different bond levels. Always confirm the current bond requirement in the official LUMVC dealer application packet or with your bonding company before applying.

4.3 Garage liability insurance

Louisiana dealer applicants must maintain garage liability insurance meeting minimum limits set by the appropriate commission. Proof of insurance is typically required as part of the dealer application.

5. Louisiana dealer application process (used dealers)

While details can change, used dealers regulated by LUMVC generally follow these steps:

1. Determine your license type (used motor vehicle dealer, rent-to-own, dismantler, auction, etc.).
2. Secure a compliant business location and ensure zoning approval.
3. Form your entity, obtain tax registrations, and prepare your FEIN.
4. Arrange your dealer surety bond and garage liability insurance.
5. Download and complete the current LUMVC initial dealer application packet for your license type.
6. Attach all requested documentation, including photos, lease or ownership documents, and financial assurances.
7. Submit the completed packet and fees to the commission and prepare for inspection.

6. After approval: ongoing Louisiana dealer compliance

• Renew your license, bond, and insurance on schedule with the appropriate commission.
• Maintain your established place of business in compliance with all rules.
• Follow Louisiana law for advertising, sales practices, titling, and record-keeping.
• Respond promptly to any commission inquiries or consumer complaints.

7. Official Louisiana resources

• Louisiana Motor Vehicle Commission (LMVC)
• Louisiana Used Motor Vehicle Commission (LUMVC)