To start a car dealership in Louisiana, you'll first need to obtain a dealer license by completing the Used Car Dealer License Application and paying the $400 fee. Next, you'll need to secure a business location that complies with local zoning regulations and acquire liability insurance and a motor vehicle dealer bond. You'll also be required to attend an educational seminar and submit your license application. Once you've completed these steps, you can begin building your dealership, but there are ongoing requirements to maintain your license and stay compliant - understanding these details is vital to your business's success.

TL;DR

• Obtain a used car dealer license by completing the application, paying the $400 fee, and undergoing a criminal background check.

• Set up a business location that complies with local zoning regulations and install a visible permanent sign displaying the trade name.

• Acquire garage liability insurance with a minimum coverage of $55,000 and a motor vehicle dealer bond based on the number of vehicles.

• Attend a mandatory educational seminar for dealership owners, managers, title clerks, and salespeople to understand state regulations and best practices.

• Submit the license application, pay the required fees, and provide necessary documentation, including proof of zoning compliance and liability insurance.

Obtain a Dealer License

To kick-start your car dealership in Louisiana, the first hurdle to clear is obtaining a dealer license. You'll need to complete the Used Car Dealer License Application and pay a $400 fee for a two-year license. As part of the application process, you'll undergo a criminal background check, which costs $35. This is a requirement for all business owners.

To increase your chances of approval, make certain you meet the licensing requirements, including acquiring an auto dealer bond. The bond amount depends on your expected sales volume: $20,000 for selling 119 vehicles or less, or $35,000 for selling 120 or more vehicles. Additionally, you'll need to attend an educational training seminar, which is mandatory for at least one company representative. Once you've completed these steps, you'll be well on your way to obtaining your dealer license. Remember to carefully review the application requirements and submit all necessary documents to avoid delays. By following these steps, you'll be able to successfully obtain your dealer license and start your used car dealership in Louisiana.

Set Up Business Location

Establishing a solid foundation for your car dealership in Louisiana begins with securing a suitable business location. You'll need to either own or lease a property that complies with local zoning regulations before applying for a dealer license. Confirm that the location has a visible permanent sign displaying your trade name, with a minimum size of four feet by four feet, as required by state regulations. This sign will not only help attract customers but also serve as a marker of your business's legitimacy.

To verify zoning compliance, you'll need to check with local authorities to confirm that your chosen location is suitable for operating a car dealership. This step is vital in avoiding potential setbacks and fines. Additionally, you'll need to install a landline phone at the dealership that is publicly listed, and maintain all business documents on-site. By taking these steps, you'll be well on your way to establishing a reputable and compliant business location that meets the requirements for a dealer license in Louisiana.

Get Liability Insurance & Motor Vehicle Dealer Bond

Anyone starting a car dealership in Louisiana needs to guarantee the necessary insurance and bonding to protect against potential liabilities and comply with state regulations. You'll need to get garage liability insurance with a minimum coverage of $55,000 to safeguard against potential liabilities during operations. Additionally, you'll need a motor vehicle dealer bond, which serves as a financial guarantee that your dealership will comply with state laws and regulations regarding vehicle sales and transactions.

The amount of the bond depends on the number of vehicles you plan to sell: $20,000 for selling 119 vehicles or less, and $35,000 for selling 120 or more vehicles. The cost of the bond will vary based on your credit score. You'll need to submit proof of liability insurance and the dealer bond along with your dealer license application to guarantee compliance with state requirements. Failure to obtain the necessary insurance and bond can result in delays or denial of your dealer license application, preventing your dealership from legally operating. By securing the necessary insurance and bonding, you'll be one step closer to establishing a successful car dealership in Louisiana.

Attend Educational Seminar

As part of the licensing process in Louisiana, attending an educational training seminar is a mandatory requirement for car dealership owners, managers, title clerks, or salespeople involved in the dealership's day-to-day operations. You'll need to participate in this seminar, which focuses on dealership operations, compliance with state regulations, and ethical practices essential for running a successful dealership. The seminar provides valuable insights into the legal and regulatory requirements that govern the industry, helping you understand the intricacies of dealership operations.

Submit License Application

Upon completing the mandatory educational seminar, your next step is to submit a thorough license application to the Louisiana Used Motor Vehicle Commission. You'll need to complete the Louisiana Used Motor Vehicle Dealers License Application and include a Louisiana Salesperson License Application for at least one salesperson. Pay the $400 application fee, which covers a two-year license period, and submit a $35 fee for background checks if applicable.

As a dealer, make sure you meet all requirements, including proof of zoning compliance, a picture of the required permanent business sign, and documentation of a business landline phone installation. You must also obtain and provide proof of a $50,000 Louisiana Used Motor Vehicle Dealer Bond and garage liability insurance with a minimum coverage of $55,000. Submit the application and all required documents to the commission, and expect processing within approximately 14 business days. Verify that all information is accurate and complete to avoid delays in the licensing process. Once submitted, your application will be reviewed, and you'll be one step closer to obtaining your dealer license.

Maintain License Compliance

To maintain dealer licensing requirements, keep a minimum of $55,000 in garage liability insurance and an auto dealer bond of $20,000 (or $35,000 depending on sales volume) active at all times. You'll also need to submit monthly sales reports for all vehicle transactions, noting "No Sales" if applicable. Finally, notify the Louisiana Used Motor Vehicle Commission promptly of any changes to your dealership name, address, or contact information by completing the Information Change Form. By prioritizing license compliance, you'll avoid potential fines and guarantee your dealership remains in good standing with the state. This proactive approach will also help you maintain a strong reputation within the industry.