How to Get a Dealer License in Louisiana
In Louisiana, dealer licensing runs through the Louisiana Used Motor Vehicle Commission (LUMVC). To get a used car dealer license in Louisiana you'll need a registered business, a compliant location, a $50,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Louisiana auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Louisiana Used Motor Vehicle Commission (LUMVC)'s current pages before you file.
- Surety bond
- $50,000
- License term
- Two-year term; licenses run from issue (or Jan 1) and expire December 31, on a biennial cycle staggered by district — two dealers can have different renewal years depending on where their lot sits. Salesperson licenses are annual. Renewals can be filed online.
- Sales threshold
- A used-dealer license is required if you sell five (5) or more used motor vehicles in any 12-month period — up to four private sales per year without a license (LUMVC FAQ).
- Pre-licensing
- Required — a mandatory 4-hour LUMVC educational seminar (not a written exam). One of the owner, salesperson, general/office manager, or title clerk must attend before the license issues, or within 60 days with proof of registration. Seminars run monthly; no entry after 9:00 a.m.
License types in Louisiana
| License type | What it covers |
|---|---|
| Used Dealer's License | The core license — sell used cars, trucks, trailers, motorcycles, motorhomes, boats, ATVs, and more. $400 for a 2-year term. |
| Auction License | Public, wholesale (dealer), or salvage auctions; the dealer must also hold a Used Dealer's License. Wholesale is a category here, not a separate license. |
| Rent With Option to Purchase / Daily Rental License | Buy-here-pay-here-style leasing and daily rental operations. |
| Salesperson License | Required for each dealership — at least one salesperson; $25 for a 1-year term. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| License fee | $400 | Per license type; covers the full 2-year term |
| Surety bond (face amount) | $50,000 | Coverage amount; the premium you actually pay to the surety is a fraction of this |
| Garage liability insurance | $55,000 minimum limit | Required via ACORD certificate naming LUMVC as certificate holder |
| Criminal background check / additional location | $50 per applicant / $200 per location | Background check only if an owner has a non-traffic conviction in the past 10 years |
Step by step
- Secure an established place of business meeting premises rules (sign at least 16 sq ft, working phone, proper zoning); register the entity with the LA Secretary of State if incorporated.
- Obtain the $50,000 LUMVC surety bond (on the LUMVC form, POA attached) and garage liability insurance (minimum $55,000, LUMVC as certificate holder).
- Complete the Dealer Application plus at least one Salesperson Application, the Zoning Verification form, and attach a photo of the sign.
- Register for and attend (or schedule) the 4-hour educational seminar.
- Submit the full packet with the $400 fee (plus $50 per applicant background check if applicable) by mail or hand delivery to LUMVC in Baton Rouge.
- Pass the on-site inspection; after licensing, obtain dealer inventory plates from the OMV Special Plate Division and enroll in the Temporary Tag Database.
Premises & temp tags
Location: You need an established place of business (owned or leased) where vehicles are displayed and records are kept. Requirements: a permanently affixed business sign showing the exact trade name, visible from the street, at least 16 square feet (4'x4'); a working business telephone listed in directory assistance under the business name; and a signed Zoning Verification form from the local zoning authority. An LUMVC investigator inspects the site before the license is issued.
Temp tags / plates: Louisiana dealers issue temporary tags through the OMV Temporary Tag Database, logging each purchaser and vehicle electronically. A paper Temporary Tag Receipt exists as an offline backup. Titling, registration, and the temp-tag system are all OMV functions, separate from LUMVC licensing.
Louisiana-specific things to know
- Three-agency split (the key Louisiana gotcha): used/independent dealers go through LUMVC, new-car/franchise dealers through the Louisiana Motor Vehicle Commission (LMVC), and titling/registration/plates/temp tags through the Office of Motor Vehicles (OMV).
- Dealer plates are an OMV function, not LUMVC — after LUMVC licensing you separately obtain inventory plates from the OMV Special Plate Division.
- Staggered district renewal means two dealers can have different renewal years depending on the district their lot is in.
- Dealers file monthly sales/plate reports with the OMV, separate from LUMVC licensing.
Official Louisiana resources
- LUMVC — Used-Dealer Licensing ↗
- LUMVC — Forms & Requirements ↗
- Louisiana OMV — Vehicle Title & Registration Forms ↗
Louisiana dealer license FAQ
How much does a dealer license cost in Louisiana?+
License fee: $400; Surety bond (face amount): $50,000; Garage liability insurance: $55,000 minimum limit; Criminal background check / additional location: $50 per applicant / $200 per location. Plus the $50,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Louisiana?+
Louisiana requires a $50,000 surety bond. Required per La. R.S. 32:791 — aggregate surety liability in any calendar year may not exceed $50,000. Must use the LUMVC bond form (or its exact language) with an original Power of Attorney attached, held to the State of Louisiana through LUMVC. Cancellation revokes the license as of the cancellation date unless replaced.
Do you need a physical lot to get a dealer license in Louisiana?+
You need an established place of business (owned or leased) where vehicles are displayed and records are kept. Requirements: a permanently affixed business sign showing the exact trade name, visible from the street, at least 16 square feet (4'x4'); a working business telephone listed in directory assistance under the business name; and a signed Zoning Verification form from the local zoning authority. An LUMVC investigator inspects the site before the license is issued.
How many cars can you sell in Louisiana without a dealer license?+
A used-dealer license is required if you sell five (5) or more used motor vehicles in any 12-month period — up to four private sales per year without a license (LUMVC FAQ).
How long is a Louisiana dealer license valid?+
Two-year term; licenses run from issue (or Jan 1) and expire December 31, on a biennial cycle staggered by district — two dealers can have different renewal years depending on where their lot sits. Salesperson licenses are annual. Renewals can be filed online.
Is dealer training or an exam required in Louisiana?+
Required — a mandatory 4-hour LUMVC educational seminar (not a written exam). One of the owner, salesperson, general/office manager, or title clerk must attend before the license issues, or within 60 days with proof of registration. Seminars run monthly; no entry after 9:00 a.m.
How do temporary tags work for Louisiana dealers?+
Louisiana dealers issue temporary tags through the OMV Temporary Tag Database, logging each purchaser and vehicle electronically. A paper Temporary Tag Receipt exists as an offline backup. Titling, registration, and the temp-tag system are all OMV functions, separate from LUMVC licensing.
Data verified 2026-07-17. Requirements change — confirm with the Louisiana Used Motor Vehicle Commission (LUMVC) before filing.
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