How to get a used car dealer license in Louisiana

This guide is informational and does not replace official Louisiana requirements. Always verify with Louisiana Used Motor Vehicle Commission (LUMVC) before applying.

Step-by-step process

1. 1

   Form the business and secure the location

   If you'll operate as a corporation, LLC, LP, or LLP, register with the Louisiana Secretary of State first. Then lock in an established place of business: a location you own or lease, where vehicles for sale are displayed and your records are kept. Pick the trade name now and use it everywhere. LUMVC requires the exact same business name on the application, bond, insurance, sign, and phone listing.

2. 2

   Get zoning sign-off, the sign, and the phone

   Your local zoning authority completes LUMVC's Zoning Verification form, including the zoning code if the location is zoned. Put up a permanent sign with your exact trade name, at least 16 sq ft (4' x 4'), in front of the business and clearly visible from the street. Banners and real-estate-style signs don't count. Set up a business phone listed with 411 in the business name. A cell phone is fine.

3. 3

   Buy the $50,000 bond and garage liability insurance

   The bond must be on LUMVC's form or use its exact language, show the bond number, the principal's ownership, trade name, and physical address, the ownership type, and effective and ending dates. It must be signed by the principal and the surety, carry the surety's seal, and have the power of attorney attached. The garage liability certificate needs minimum limits of $55,000, the garage liability box marked, every insured salesperson listed, and LUMVC as certificate holder.

4. 4

   Register for the 4-hour educational seminar

   One person from the dealership — the owner, general manager, office manager, title clerk, salesperson, or another responsible representative — must attend LUMVC's 4-hour seminar (La. R.S. 32:791(B)(3)(b)(i)). It's free and runs online on Microsoft Teams. Send the registration form with your packet. New applicants complete it before licensing or show they're signed up, and must attend within 60 days of the license being issued.

5. 5

   Submit the Initial Dealer Packet on paper

   You can't apply for an initial license online. Mail or hand-deliver the dealer application, at least one salesperson application, the bond, the insurance certificate, the zoning form, a picture of the sign, your business phone details, and the fees: $400 for the used dealer license and $25 per salesperson. Pay by cash, check, money order, or cashier's check to the La Used Motor Vehicle Commission. If an applicant was convicted of or pled guilty to a crime other than a traffic violation in the past 10 years, the packet adds a criminal background check fee.

6. 6

   Pass the physical inspection

   LUMVC inspects the location before it issues the license. It says to allow about 14 business days for processing, in the order applications are received. Hand delivery doesn't speed it up. If something is missing, you'll get a sendback letter by email. You can't operate while the application is pending.

Can you get a Louisiana dealer license without a lot?

You need an established place of business. LUMVC defines it as a place you own or lease and regularly occupy for the principal purpose of selling used vehicles, where vehicles for sale are displayed and your books and records are kept. It also needs the 16 sq ft sign, a listed phone, zoning approval, and a passed inspection.

Selling online doesn't get you out of it. LUMVC's FAQ says you need a used dealer license whether you sell on an open lot, as a broker in an office suite, or on the internet, and an internet seller still has to meet the same dealer requirements.

Working from home depends on your local zoning. LUMVC says to check with your city or parish planning and zoning office, courthouse, or police jury. Two dealers can share a location if each keeps a separate office, inventory, records, sign, and phone listing in its own name.

Buying at dealer-only auctions with a Louisiana license

A lot of people want a dealer license just to get into dealer auctions. LUMVC answers this one directly: to get into the auction, you must hold a dealer's license or be affiliated with one, such as a licensed salesperson. Each auction sets its own registration paperwork, so ask the auction what it needs.

Keep in mind what the license costs to hold. It's a full retail license with a lot, a sign, a $50,000 bond, garage liability insurance, and a seminar. And you only need an auction license if you're going to run auctions, not buy at them.

Once you're licensed: the paperwork on every deal

LUMVC says a dealer has 20 calendar days from the sale to apply for title in the buyer's name and give the buyer what they need to get a plate. Penalty and interest start after 40 days. You also send a monthly sales report to the Office of Motor Vehicles, marked "No Sales" in a month with none.

The title application is the DPSMV 1799. Our Louisiana DPSMV 1799 guide walks through it field by field. DealerVLO fills the official DPSMV 1799 from the deal — buyer, vehicle, and sale details — so you're not hand-writing it at the counter.

If the title has no odometer statement and the vehicle isn't exempt, you'll need a separate one. See our odometer disclosure guide for when a written mileage statement is required.

The Louisiana auto dealer bond: $50,000

Louisiana requires every used-vehicle dealer to post a $50,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.

You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1–5% (estimate) of the bond's face value. Your actual premium depends on personal credit and business history.

The bond is $50,000 per calendar year, payable to the State of Louisiana through LUMVC, and must stay in force for the whole license period. It covers the proper handling of taxes, license fees, tags, and titles; buyers' losses when a dealer fails to deliver a title or remit tax and registration fees; restitution ordered by the commission; and commission fines and hearing costs up to $25,000. Use LUMVC's form or its exact wording. The premium range is a market estimate, not a state figure.

Common questions