Louisiana New Motor Vehicle Dealer Bond
Overview
Louisiana routes new motor vehicle dealer licensing through a dedicated commission, and the bond runs straight to it. Under La. R.S. 32:1254, which governs licensing by the Louisiana Motor Vehicle Commission, a dealer applicant must furnish a $20,000 surety bond to the commission before the license issues. The commission — not the Office of Motor Vehicles — is the licensing authority for new vehicle dealers, and the bond is one of the statutory conditions it enforces.
Who Needs This Bond?
Applicants for a new motor vehicle dealer license from the Louisiana Motor Vehicle Commission furnish this bond — franchised dealerships selling new cars, trucks, and other new motor vehicles in Louisiana. R.S. 32:1254 is the commission's licensing statute, so if the LMVC has listed a surety bond among your application requirements, this $20,000 filing is what the statute calls for.
What is this Bond For?
The bond financially backs the dealer's compliance with Louisiana's motor vehicle commission law. If a licensed dealer's unlawful conduct in a vehicle transaction — failing to deliver good title, violating franchise and licensing provisions, or otherwise breaching the statute's obligations — causes a monetary loss, the bond provides a source of recovery. The dealer must reimburse the surety for any valid claim paid, keeping the accountability on the dealership.
When is it Required?
Furnish the executed bond with your license application — the commission requires it before licensure, and coverage must remain in force through every renewal for as long as you hold the license. Because the LMVC licenses on an annual cycle, align your bond's continuation with your license renewal so there is never a gap that could interrupt your authority to sell.
Where Does it Apply?
This is a statewide Louisiana requirement administered by the Louisiana Motor Vehicle Commission, the body created by R.S. Title 32, Chapter 6 to license and regulate new motor vehicle dealers, manufacturers, and related businesses. It applies to licensed dealers in every Louisiana parish, because the obligation comes from state statute rather than any parish or municipal rule.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Louisiana dealer bond is ready to file with the Motor Vehicle Commission as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the Louisiana Revised Statutes in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond to you in time for your commission filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- $20,000 surety bond furnished to the Louisiana Motor Vehicle Commission as a condition of dealer licensure: Louisiana Revised Statutes §32:1254 (verified July 16, 2026)