From state to state, there will always be different requirements for professional business and licensing. This applies to car sales licenses as well. Here in this guide, we will discuss the requirements for the Louisiana Car Dealer Bonds. There are many unique points that stand out if you are familiar with regulations from other countries and whether you open your first agent or you simply need to activate for your current experience, you can use this information to stay on track.
Louisiana is unique in that it breaks its interconnect requirements for agents based on size. This opposes other states, such as Florida, that classify dealers based on the types of cars they sell, used cars or new cars from the manufacturer, recreational agents, etc. But in Louisiana, it's the amount of sales you sell.
This means that dealers selling less than 120 vehicles in the previous 12 months have bond requirements of $ 20,000. The dealers who open only get the threshold of $ 20,000 instead of the upper limit.
Dealers who sell more than 120 cars in a 12-month period must increase the bond to $ 35,000. If you are year to year, you grow or decrease in size, or tend to go back and forth and hover around this limit of 120, which is 10 cars per month, then always depends on the previous 12 months only.
In Louisiana, car dealer bonds last for one year and offer annual renewal requirements. It is scheduled to operate on a calendar year basis, meaning that it will always expire on 31 December. This makes things easy to track, because you do not have to remember a random date in the calendar, simply the end of the year.
In addition, to obtain and license a car dealer in Louisiana, you will need to obtain garage liability insurance in addition to the vehicle dealer warranty. The minimum here is $ 55,000. In addition, your license will be valid for two years, although as described above, you must renew your car dealer's bonds annually.
As always, it is necessary to consult with a professional who has experience working with your country's requirements. They must ensure that all your licensing requirements are met, with help to obtain fair prices on your bonds and any other insurance that may be required, such as the garage liability listed above.