If you’re looking to open a car dealership in Louisiana, your first step in the process will be getting licensed to do so. Whether or not you are looking to sell used or new vehicles, you will need to complete processes to legally comply with the state’s dealership laws. We’ve gathered a list of all the steps you must complete to help you get the process sorted efficiently and accurately. 

6 Steps to Get Your Louisiana Dealer License

1. Identify Which Type of Dealer License you Need 

In the state of Louisiana, there are two options when it comes to dealer licensing.¹ 

• New car dealer license: To apply for this license, you must visit the Motor Vehicle Commission (MVC). With this license, you can operate a new motor vehicle dealership, establish a repair center for satellite warranties, or become a dealer of specialty cars, among many other abilities.
• Used car dealer license: This license can be obtained through the Louisiana Used Motor Vehicle Commission (LUMVC). With this license, your dealership can sell used vehicles, sell auction vehicles, or even offer rentals that can be purchased down the line, among many other abilities. 

2. Settle a Permanent Business Location

Before submitting an application, your business location must be set up, and it needs to meet a handful of requirements. To qualify, be sure that you: 

• Own or lease a property where you keep all books and business documents on site. 
• Feature a permanently installed sign that shows your exact trade name visible from the street, at least four feet in size . You’ll be asked to include a photo of this sign within your application. 
• Install and list a landline phone for the business. 
• Provide proof that your location meets all zoning requirements and laws as outlined by local governing bodies. 

3. Take the Educational Training Seminar

Not every state requires this, but in Louisiana, in order to operate a dealership, at least one of the owners, managers, title clerks, or salespeople must attend and complete the seminar and also provide proof by submitting a PDF copy of your course registration with your application. 

4. Get Liability Insurance and an Auto Dealer Bond

In Louisiana, you have to provide proof that you’ve enrolled in garage liability insurance with coverage of at least $55,000. In addition, you will need to get an auto dealer bond of  $20,000 if you sell 119 vehicles or less within a 12-month range, or $35,000 if you sell 120 vehicles or more within that same timeframe. You won’t be required to pay the full amount of the bond; what you owe will be a fraction of this total value determined by your credit score and other personal financial factors.² 

5. Get a Criminal Background Check

A background check needs to be performed on the owner of the business to ensure good standing, ethical business behavior, and personal integrity. The cost for a background check is $35.  

6. Pay your Fees and Submit the Application

In addition to providing proof of all of the above steps, you will need to pay an application fee for the license, which is $400 for a two-year license. Then, once you have your paperwork and fee ready, you scan and submit the paperwork forms via email to info@lumvc.louisiana.gov. For a used dealership license, you can mail in your documents  to³: 

Louisiana Used Motor Vehicle Commission 
3132 Valley Creek Drive 
Baton Rouge, LA 70808

This is not intended as legal advice. If you have questions about dealer licensing requirements, please seek the assistance of legal counsel.

Find Used Car Inventory in Louisiana with ACV Auctions

Once you have your Louisiana dealer license, our team at ACV Auctions is here to help you take your business to the next level. What’s the most important factor in being able to sell vehicles? Having quality vehicles on the lot. 

Our online auctioning platform makes it easy for you to build a high-value inventory with used cars from Louisiana and across the country. Each of our vehicles goes through a rigorous inspection process and includes detailed inspection reports, including audio recordings and undercarriage views. Once you get your Dealers License reach out to us to become a member so we can help grow your business.  

Sources

1. Bryant Surety Bonds. 2023. “Louisiana Auto Dealer License Guide.” Risk Strategies: Bryant Surety Bonds. Retrieved October 31, 2023. https://www.bryantsuretybonds.com/blog/louisiana-dealer-license-guide 
2. JW Surety Bonds. “Louisiana Auto Dealer License Guide.” Risk Strategies: JW Surety Bonds. Retrieved October 31, 2023. https://www.jwsuretybonds.com/states/louisiana/auto-dealer-license 
3. Ignatowski, C. 2017. “How to get a Louisiana Used Car Dealer License.” Surety Solutions. Retrieved October 31, 2023. https://suretysolutions.com/suretynews/how-to-get-a-louisiana-used-car-dealer-license/