Dealer Surety Bond in Louisiana: $10,000–$100,000 Requirement
Louisiana requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Louisiana
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Louisiana
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Louisiana-Specific Note
Louisiana-Specific Facts for Dealer Surety Bond
Louisiana Vehicle transfer fees and requirements
In Louisiana, the title transfer fee is $68.5 and registration costs $20 - $82 depending on vehicle value. Vehicle sales are subject to 4.45% state sales tax plus parish taxes (total can exceed 10%). Notarization is required for vehicle bill of sale documents in Louisiana. Louisiana does not require emission testing for private-party vehicle sales.
- Notarized act of sale required for vehicle transfers
- Buyer must obtain title within 40 days
- Parish taxes vary significantly and apply on top of state tax
Louisiana sales tax on vehicle purchases
Louisiana has a 4.45% state sales tax rate. 4.45% state plus parish taxes (total can exceed 10%). Private-party vehicle sales in Louisiana are subject to sales tax. Sales tax applies; parish taxes vary significantly. The title transfer fee is $69.
Louisiana bill of sale statistics
BillOfSaleNow has generated 1,138 bill of sale documents for Louisiana transactions, with 31 generated this month alone. The most popular vehicle type is car.
More Louisiana Vehicle Guides
- Stolen Vehicle Recovery in Louisiana
- Temporary Operating Permit in Louisiana
- Trade-In Tax Credit in Louisiana
- Vehicle Import Rules in Louisiana
- Vehicle Impound Recovery in Louisiana
- Service Contract vs Warranty in Louisiana
Each guide is written specifically for Louisiana laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Louisiana?
Louisiana requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Louisiana?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Louisiana?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Louisiana dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Louisiana?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.