From state to state, there are always going to be different requirements for businesses and professional licenses. This holds true for car dealership licenses as well. Here in this guide, we'll be discussing the requirements which are specific for Louisiana car dealer bonds. There are several unique points which stand out if you're familiar with regulations from other states, and whether you're opening your first dealership or you simply need a refresher for your current operation, you can use this information to stay on the right track .
Louisiana is unique in that they break down their bonding requirements for dealerships based on volume. This is opposed to other states, such as Florida, which classify dealers based on the types of vehicles they sell, used cars or new vehicles from the manufacturer, recreational dealerships, and so forth. But in Louisiana, it's all about how much you're selling on the lot.
This means that dealerships who sell less than 120 vehicles in the previous 12 months have a bond requirement of $ 20,000. Dealerships who are just opening then also get this $ 20,000 threshold, rather than the higher volume limit.
Dealerships who sell more than 120 vehicles in a 12 month period have to increase their bond to $ 35,000. If from year to year, you grow or decrease in size, or tend to go back and forth and hover right around that 120 limit, which is 10 cars per month, then it's always based on the previous 12 months alone.
In Louisiana, auto dealer bonds last for a year, offering annual renewal requirements. They're set to operate on a calendar year basis, which means that they always expire on December 31st. This makes things easy to keep track of, because you don't have to remember a random date on the calendar, simply the end of the year.
Further, to obtain and then maintain your Louisiana car dealer license, you'll need to get garage liability insurance in addition to an auto dealer surety bond. The minimum limit here is for $ 55,000. Additionally, your license will be good for a two year period, even though as described above, your motor vehicle dealer bonds must be renewed annually.
As always, it's essential to consult with a professional who has experience working with the requirements of your state. They should ensure you fulfill all of your licensing requirements, while helping you get fair rates on your bonds and any other insurance that may be required, such as the aforementioned garage liability.