Getting a used car dealer license in Louisiana

In Louisiana, used-car dealers are licensed by Louisiana Used Motor Vehicle Commission.

Before your first retail sale you’ll need a $50,000 surety bond, a pre-licensing course and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

Issued by
Louisiana Used Motor Vehicle Commission lumvc.louisiana.gov (source, opens in a new tab)
Surety bond
$50,000 using Commission form or exact required wording. lumvc.louisiana.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Educational Training Seminar required; owner, salesperson, general manager, office manager or title clerk may attend. Registration required. lumvc.louisiana.gov (source, opens in a new tab)
Official fees
8/2022 packet: $400 two-year dealer; $25 one-year salesperson; $200 additional location. lumvc.louisiana.gov (source, opens in a new tab)
Renewal
Two-year dealer term ending Dec 31 according to geographic district cycle. lumvc.louisiana.gov (source, opens in a new tab)
Site inspection
Yes: physical inspection before issuance by Commission process. lumvc.louisiana.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Louisiana's Used Motor Vehicle Commission issues the Used Dealers License. New and franchised dealerships go through the Louisiana Motor Vehicle Commission instead, and auction, rental, dismantler and salesperson licenses are separate. lumvc.louisiana.gov › forms-requirements (source, opens in a new tab) lumvc.louisiana.gov › faq (source, opens in a new tab)

  2. Set up the business and the premises

    Register the entity if you need one, then secure an owned or leased display location with the office and your records on site. You need a working business phone listed with directory assistance (landline or mobile) and a permanent sign at the front showing your exact trade name, visible from the road and at least 16 sq ft. Local zoning has to verify the site; whether you can operate from a residence depends on local zoning. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab) lumvc.louisiana.gov › faq (source, opens in a new tab)

  3. Use one name everywhere

    The site, sign, phone, insurance and bond must all carry the identical business name. Mismatched names are what most often delay a Louisiana license. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab)

  4. Get the bond and insurance

    The bond is $50,000, on the Commission's form or with its exact required wording, and you need a garage liability certificate. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab)

  5. Register for the training seminar

    An owner, salesperson, general manager, office manager or title clerk attends the Commission's Educational Training Seminar. Registration is required, and the registration form is part of the dealer packet. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab) lumvc.louisiana.gov › forms-requirements (source, opens in a new tab)

  6. Submit the complete packet

    The initial dealer packet includes the dealer application, a salesperson application for at least one salesperson, the seminar registration, the bond and the zoning verification. The 2022 packet lists $400 for the two-year dealer license and $25 for a one-year salesperson license. If you report convictions, a $35 criminal check may be added. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab) lumvc.louisiana.gov › forms-requirements (source, opens in a new tab)

  7. Training and inspection

    After you submit, you attend the training and the Commission inspects the premises before issuing the license. The packet says processing takes about 14 business days, and hand delivery doesn't speed it up. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab) lumvc.louisiana.gov › forms-requirements (source, opens in a new tab)

  8. Keep it current

    The dealer license runs two years and ends on December 31, on a cycle set by your geographic district. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab)

The location

Display lot
Owned/leased established display location. lumvc.louisiana.gov (source, opens in a new tab)
Office
Office and records at established premises; working business phone listed with directory assistance (landline or mobile). lumvc.louisiana.gov (source, opens in a new tab)
Sign
Permanent exact-trade-name sign at front, road-visible, at least 16 sq ft. lumvc.louisiana.gov (source, opens in a new tab)
Zoning and home-based lots
Local zoning verification required; residential operation depends on local zoning, not a blanket statewide yes/no. lumvc.louisiana.gov (source, opens in a new tab)

Before you apply

Entity registration as applicable; at least one salesperson; garage liability certificate; conviction disclosures may trigger $35 criminal check. lumvc.louisiana.gov (source, opens in a new tab)

Forms

Initial Dealer Packet includes Dealer Application, Salesperson Application, Educational Seminar Registration, bond and zoning verification; current versions linked from Forms page. lumvc.louisiana.gov (source, opens in a new tab)

Get the current versions from lumvc.louisiana.gov; we don’t host copies.

Not the license you’re after?

New/franchised dealerships use Louisiana Motor Vehicle Commission; auction, rental, dismantler and salesperson categories are separate. lumvc.louisiana.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: aligning site, sign, phone, insurance and bond under the identical business name before inspection.

Easy mistakes:

Questions

How much does a Louisiana dealer license cost?

The 2022 packet lists $400 for the two-year dealer license and $25 for each one-year salesperson license. The bond premium, garage liability insurance and the premises cost more. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab) lumvc.louisiana.gov › forms-requirements (source, opens in a new tab)

Can I run a dealership from home in Louisiana?

It depends on local zoning; there's no statewide yes or no. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab) lumvc.louisiana.gov › faq (source, opens in a new tab)

How long does it take?

About 14 business days to process a complete application, according to the Commission's packet. Hand delivery doesn't speed it up. lumvc.louisiana.gov › Initial-Dealer-Packet.pdf (source, opens in a new tab)

Sources

Not affiliated with the Louisiana OMV. Not legal advice. Requirements change; always confirm with the state.