How to get a dealer license in Louisiana

'A person shall be presumed to be engaged in the business of selling used motor vehicles if he sells five or more used motor vehicles in any twelve-month period,' not counting vehicles registered to and insured by members of the seller's household, immediate family, or businesses the seller owns part of or works for (R.S. 32:781(13)). This includes sales through any advertising, including the Internet. Selling without a license is a misdemeanor with a fine of $300 to $1,000, up to 90 days in jail, or both (R.S. 32:791).

• Used motor vehicle dealer: Sells used vehicles to the public, whether from a lot, as a broker in an office suite or online. $400 for two years and a $50,000 bond.
• Additional location and additional adjacent location: Each extra place of business needs its own license ($200 for two years with the same ownership), and an additional location needs its own bond.
• Auction license: Runs a public, wholesale (dealer) or salvage auction with a licensed auctioneer. Requires a used dealer license too. $400 for two years.
• Rent with the option to purchase: Rent-to-own vehicle businesses. Needs contingent liability insurance of $100,000/$300,000/$50,000. $400 for two years.
• Daily rental: Businesses that sell used vehicles and rent them by the day without a Louisiana Motor Vehicle Commission license. Needs scheduled auto insurance of $15,000/$30,000/$25,000. $400 for two years.
• Automotive dismantler and parts recycler, crusher, used parts and accessories, and catalytic converter licenses: Salvage, scrap and parts businesses licensed by LUMVC. $400 each for two years.
• Used motor vehicle salesperson: Sells for a licensed dealer. $25 a year. Each dealership needs at least one licensed salesperson per location.
• New motor vehicle, recreational products and specialty vehicle dealers (Louisiana Motor Vehicle Commission): Franchised new vehicle dealers, brokers, lessors and the used vehicle facilities they run are licensed by the separate Louisiana Motor Vehicle Commission, with a $20,000 dealer bond and $10,000 for each used vehicle facility location (R.S. 32:1254).

Surety bond. Used dealers keep a $50,000 continuing bond with a commercial surety, on the LUMVC form or its exact language, payable to the State of Louisiana through the Commission and in force for the whole license period. The surety's total liability is capped at $50,000 per calendar year. It covers taxes, fees and titles, buyer losses from title and registration failures, Commission restitution, penalties up to $25,000, and attorney fees. The license is revoked if the bond is canceled, renewals use a continuation certificate, and each additional location needs its own bond (R.S. 32:791; LUMVC packets and FAQ).

Insurance. Used dealers must keep a garage liability policy covering all vehicles offered for sale or used for demonstrations, and the license is revoked if it lapses (R.S. 32:791(I)). LUMVC requires an Acord certificate with minimum limits of $55,000, LUMVC as certificate holder, all insured salespeople listed, and coverage for 'any auto held for sale or trade.' A lapse of 14 days or less costs $100, and a lapse of 15 days or more means paying all application fees again. Dealers selling only ATVs, trailers, boats or boat motors do not need garage insurance (LUMVC FAQ).

Place of business. You need an established place of business, owned or leased and regularly occupied for selling used vehicles, 'where the products for sale are displayed and offered for sale,' and where the business records are kept (R.S. 32:781(7)). Your local zoning authority must sign LUMVC's Zoning Verification form. You need a permanent sign with your exact trade name, in front of the business and visible from the street, at least 16 square feet (4 feet by 4 feet); banners do not count. Your business phone must be listed with directory assistance (411) under your business name and can be a landline or cell phone. LUMVC publishes no minimum lot size, and whether you can run the business from home depends on local zoning. LUMVC inspects the site before issuing the license, each location needs at least one licensed salesperson, and the license must be posted at the business (R.S. 32:791; LUMVC packet and FAQ).

Background check. The application asks about prior licenses and criminal history. Each applicant who has been convicted of or pleaded guilty to any crime other than a traffic violation in the past 10 years must pay an extra $50 for a criminal history background check (Initial Dealer Packet, Rev 9-25). The Commission may deny a license for a felony conviction, unfitness, a material false statement, violations under a past license, or ties to a dealer whose license was revoked or suspended (R.S. 32:792).

Pre-license education. Required (4 hours). Approved courses and details.

1. Find an established place of business that local zoning allows, and have your zoning authority complete LUMVC's Zoning Verification form.
2. Put up a permanent sign with your exact trade name, at least 4 feet by 4 feet and visible from the street, and list your business phone with directory assistance (411).
3. If you use an LLC or corporation, register it with the Louisiana Secretary of State.
4. Get a $50,000 surety bond on the LUMVC bond form and a garage liability Acord certificate with minimum limits of $55,000 that names LUMVC as certificate holder.
5. Register an owner, salesperson, general manager, office manager or title clerk for the free 4-hour educational seminar with the Educational Seminar Registration form.
6. Send LUMVC the Dealer Application, at least one Salesperson Application, the bond, insurance certificate, zoning form, sign photo and fees ($400 dealer license, $25 per salesperson, and $50 per applicant with a recent conviction). Initial applications cannot be filed online.
7. Pass LUMVC's site inspection. A complete application takes about 14 business days.
8. Attend the seminar within 60 days after your license is issued if you have not already, then buy dealer plates with Form DPSMV 1640 ($15 per plate plus a $20 convenience fee).

Official forms:

• Initial Dealer Packet (Rev 9-25)
• Dealer Application (Rev 8-22)
• Salesperson Application (Rev 9-25)
• LUMVC Surety Bond, $50,000
• Zoning Verification
• Educational Seminar Registration
• Dealer Renewal Packet
• Application for Dealer's License Plates, with instructions (DPSMV 1640)
• LUMVC Fee Schedule (LUMVC 10/17)

No. LUMVC requires every used dealer, including brokers in an office suite and Internet sellers, to have an established place of business where vehicles for sale are displayed, with a permanent sign and zoning approval; whether that can be at your home depends on local zoning.

LUMVC says you must hold a dealer license, or be affiliated with a dealer such as a licensed salesperson, to buy at the auction, and Louisiana wholesale motor vehicle auctions are open only to licensed dealers, dismantlers and parts recyclers (R.S. 32:781). AuctionACCESS (auctionaccess.com), which credentials buyers for over 400 auction marketplaces, limits membership to licensed vehicle dealers and their authorized representatives.

Dealer licenses run for two years ending December 31, on a cycle set by district: districts 1, 2 and 3 renew for January 1, 2027 to December 31, 2028, and districts 4 and 5 hold licenses for January 1, 2026 to December 31, 2027. LUMVC encourages online renewal, or you can mail the renewal packet with the application, salesperson applications, a $50,000 bond continuation certificate, an insurance certificate and the $400 fee. Renewals postmarked after December 31, 2026 pay a $100 late fee per license type, and after February 1 you must also send a new zoning form and sign photo.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Louisiana Used Motor Vehicle Commission (LUMVC) before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Louisiana.