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Auto Dealer Bond Louisiana

Get an Auto Dealer Bond in Louisiana Through Viking Bond Service

In 2018, there were over $13 billion worth of auto sales conducted in Louisiana, according to the National Automobile Dealers Association. Most of those sales were conducted at new and used car dealerships, and all of those dealers were required to get licenses before they were allowed to sell vehicles legally. One of the major requirements for earning a license is obtaining the right kind of bond. When you're ready to get the process started, make Viking Bond Service the first surety you contact for a Louisiana Auto Dealer Bond.

Louisiana Auto Dealership Bonds Explained

The Louisiana auto dealer bond is a License Surety Bond that serves to protect Louisiana's citizens by providing a path for recourse in situations where an Auto Dealer does not adhere to the laws, rules, and regulations as set in Louisiana state legal statutes. A Louisiana Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing and/or vehicle dealer registration process.

In Louisiana, the required Motor Vehicle Dealer bond amount is as follows:

  • Louisiana, Used Motor Vehicle Dealer bond requirement – $20,000 Surety Bond

You should always check with the Louisiana Motor Vehicle Commission, or requesting agency, for the most current required Louisiana Motor Vehicle bond amount as well as the required bond forms.

writes Louisiana Motor Vehicle Dealer bonds. We can assist both clients with good credit, and clients with bad credit. Typically, the worse the credit, the higher the surety bond premium will be. In either case, we always work to get the best quote for you. Viking has partnered with markets that welcome Louisiana Motor Vehicle Dealer bond applications and provide competitive quotes for them.

What Parties Are Involved in an Auto Dealer Bond Louisiana?

When you enter into a surety bond agreement, there are three parties involved. You are known as the Principal. It's your responsibility to obtain the bond, to renew it so that it stays active, and to pay any valid claims made against the bond. The Louisiana Motor Vehicle Commission is known as the Obligee. As the agency responsible for regulating auto sales state-wide, they create the bond requirement in order to hold auto dealers accountable for behavior that harms the public. The company that agrees to issue and underwrite the bond is called the Surety. They investigate whether claims are valid and handle the initial payments. However, the amount the surety pays to settle the claims will ultimately be repaid by collecting from the principal — the auto dealer who triggered the claim in the first place.

Who Needs an Auto Dealer Bond in Louisiana?

If you plan to sell more than four vehicles within a 12-month period you are required by law to have a motor vehicle dealer license in Louisiana. The state will not issue you a license until you can prove that you have an active Louisiana auto dealer surety bond. Basically, anyone who plans to build a business around selling vehicles needs a license, which means that they will also need a bond.

How Are Auto Dealer Bonds in Louisiana Obtained?

It is up to the principal (you) to initiate a bond agreement. You do that by contacting a surety company like Viking Bond Service that is authorized to issue auto dealer bonds throughout Louisiana. After you submit your application, receive your quote, and pay your premium, your bond is active. The surety will issue you a document proving that you have met this part of the motor vehicle dealer license requirements.

How Much Does a Louisiana Auto Dealer Surety Bond Cost?

Louisiana motor vehicle dealer bonds must provide $20,000 of coverage, meaning the surety is willing to pay for up to $20,000 in claims. The amount you pay to actually obtain that bond is only 2-5% of the total. For some, the cost of a bond could be less than $1,000. Premiums are based on the applicant's credit worthiness. Applicants with low credit scores will pay marginally higher premiums, but in most cases they won't be turned down for bonds, at least not at Viking Bond Service.

How to Renew a Louisiana Auto Dealer Bond?

Bonds have to be renewed annually. As part of the process, underwriters will reassess your credit risk and adjust your premium up or down accordingly. Be sure to begin planning for the yearly expense of your Louisiana motor vehicle surety bond renewal.

(See Also: Cost Expectations for Auto Dealer Bonds)

How Viking Bond Service Can Help You Get a Louisiana Auto Dealer Bond

Getting the bonding process started takes just a few minutes of your time. You probably won't need to track down any specific information, either. As part of the application, you will need to supply:

  • Information about your auto dealership and business model
  • Information about your financial history
  • Information about the finances of any business partners you have
  • Information specifically requested by the surety company

When you work with Viking Bond Service, you can expect to get a quote back in as little as 24 hours. After you pay the premium and activate the bond, you're one big step closer to completing all the requirements for your motor vehicle dealer license.

Request a Louisiana Motor Vehicle Dealer Bond Quote

You will need to have an active Louisiana auto dealer bond for as long as you run your auto dealership. That means you want to partner with the right surety company; someone you can form a long-term partnership with, from the earliest days of your business. Count on Viking Bond Service to provide you with all the resources, assistance, and expertise you require from now on. If you're eager to get a bond ASAP, fill out our online application right now. If you want specific information, reach out through the contact form on this page. And if you want to connect with one of our bond experts directly, call us at 1-888-278-7389 at your convenience.

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