Licenses
Licensing - Licenses
To engage in business in the state of Louisiana, regardless of whether or not said person or entity maintains or has a place or places of business in this state, a license must be obtained first, pursuant to LA-R.S. 32: 1254.
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Manufacturers, Distributors or Wholesalers, Branches, Representatives:
- Entities or Persons who fabricate, assemble, produce or distribute new motor vehicles, or new recreational products (vehicles)
- Includes factory and distributor branches that ship vehicles to Louisiana
- Every location requires a license that conducts business with Louisiana
- Representatives of the licensed locations who are engaged in promoting or selling or facilitating the distribution of vehicles
New Motor Vehicle Dealer, New Recreational Product Dealer, their Used Vehicle Facilities, and Salespersons
- Entities or Persons who are authorized to sell new motor vehicles and/or new recreational products through a franchise or dealer agreement with a licensed manufacturer or distributor
- Every location located in Louisiana requires a license, including a facility that sells used motor vehicles and recreational products
- Individuals who are employed by the licensed dealer and whose duties include, in whole or in part, the selling, financing, insuring, or participating in the selling of motor vehicles and recreational products.
- The individual must obtain a salesperson license for each licensed location that they are selling, financing, insuring, or participating in the selling of motor vehicles and recreational products.
Satellite Warranty and Repair Centers:
- Facility authorized to perform warranty and repair services on motor vehicles outside of a licensed new motor vehicle dealership franchised location
- Location must be approved by the manufacturer or distributor
Brokers
- An entity or person who, for a fee or commission, facilitates or offers to facilitate the sale of a new motor vehicle or recreational product for purposes other than resale.
- Arrange transactions involving vehicle sales for commissions without owning inventory and without engaging in direct sales.
- Act as intermediary in vehicle or recreational product sales but are distinct from dealers, manufacturers, and direct owners
Motor Vehicle Lessor and Agents, Motor Vehicle Lessor Used Motor Vehicle Facility, Lessor Franchisors, Lease Facilitators
Motor Vehicle Lessor and Agents:
- Any person or entity engaged in the leasing and renting of motor vehicles, recreational products, or specialty vehicles, including its subsidiaries
- When a person or entity is not required to maintain a license with the LMVC and is engaged in the renting of motor vehicles, recreational products, or specialty vehicles that are NOT of the current year or immediate prior year models that have been titled previously to an ultimate purchaser, this license is issued through and is regulated by the Louisiana Used Motor Vehicle Commission.
- Every location requires a license, including daily rental companies, that conducts business with Louisiana consumers.
- Employees of a licensed motor vehicle lessor who handles the leasing, renting, or offering of motor vehicles, recreational products, or specialty vehicles for lease or rent
- Excludes employees of daily rental only companies
Motor Vehicle Lessor Used Motor Vehicle Facility and Salespersons:
- A motor vehicle lessor that sells used motor vehicle vehicles, used recreational products, and used specialty vehicles. (vehicles)
- Every location requires a license.
- Individuals who are employed by the licensed motor vehicle lessor used motor vehicle facility and whose duties include, in whole or in part, the selling, financing, insuring, or participating in the selling of used vehicles.
- Individuals must obtain a license for each licensed location that they are selling, financing, insuring, or participating in the selling of motor vehicles and recreational products
Note: Two licenses are required when a motor vehicle lessor is leasing and selling vehicles at the same location. Motor Vehicle Lessor and Agent(s) and Motor Vehicle Lessor Used Motor Vehicle Facility and Salesperson(s)
Motor Vehicle Lessor Franchisor:
- Any person or entity who grants a franchise to any person or entity granting the right to lease or rent a motor vehicle, recreational product, or specialty vehicle under its trade name, trademark, or service mark or to sell used motor vehicles, recreational products, or specialty vehicles formerly a part of its rental fleet.
Motor Vehicle Lease Facilitator:
- A person or entity who acts as an intermediary in securing lease agreements but does not own or register the leased vehicles and who is not a motor vehicle or recreational products dealer, a motor vehicle lessor, or a bona fide employee of either
- A person or entity who engages in one or both of the following activities:
- Represents themselves as a “motor vehicle leasing company” or “motor vehicle leasing agent” (or similar title) to solicit or procure individuals to enter into lease agreements for motor vehicles or recreational products that will not be titled or registered in the lease facilitator’s name.
- Solicits or secures lessees for motor vehicles or recreational products that are not and will not be titled or registered in the lease facilitator’s name.
Converters or Secondary Manufacturers
- Entities or Persons who, before the retail sale of a motor vehicle or trailer, performs significant modifications. This includes assembling, installing, or attaching a body, cab, or special equipment to a chassis, or making substantial alterations to an already assembled or manufactured vehicle or trailer.
- Every location requires a license
Specialty Vehicle Dealers, their Used Facilities, and Salespersons
- Entities or Persons who sell specialty vehicles and hold a bona fide franchise in effect with a licensed converter or secondary manufacturer of specialty vehicles
- Such a duly franchised and licensed specialty vehicle dealer shall be the sole person entitled to sell, publicly solicit, and advertise the sale of specialty vehicles
- Entities or Persons who sell used specialty vehicles
- If this is the only license required for this entity or person to conduct business, the used specialty vehicle dealer obtains the license through and is regulated by the Louisiana Used Motor Vehicle Commission.
- Every location requires a license
- Individuals who are employed by the licensed specialty vehicle dealer and whose duties include, as a whole or in part, the selling, financing, insuring, or participating in the selling of specialty vehicles
Note: Two licenses are required when a specialty vehicle dealer sells both new and used specialty vehicles at the same location. Specialty Vehicle Dealer and Salesperson(s) and Specialty Vehicle Dealer Used Motor Vehicle Facility and Salesperson(s). Additional licenses are required if the specialty vehicle dealer is leasing or financing vehicles.
Promoters, Auto Shows, Trade Shows, and Exhibitions
Auto Shows
- Auto shows and exhibitions are events where vehicles are displayed and promoted, sometimes leading to sales at off-site locations. The final sale and delivery of vehicles are NOT permissible at the shows.
- Only licensed motor vehicle dealers may conduct sales of motor vehicles at auto shows.
- Promoter, organizer, and producer are key figures in planning and executing auto shows and exhibitions, requiring a license.
Recreational Product Trade Shows
- Promoters, organizers, or producers organize and execute recreational product trade shows, requiring a license.
- Licensed recreational product dealers, specialty vehicle dealers, distributors, manufacturers and converters may participate in the trade shows to promote and sell their products. The final sale and delivery of the vehicle is NOT permissible at the trade shows.
- Non-Louisiana recreational product dealers, distributors or manufacturers participate in shows by obtaining an exhibition license.
Offsite Expositions of Recreational Product Dealer
- A Licensed Recreational Product Dealer can host an off-site exposition without being in a trade show.
- This off-site exposition is limited to a single dealer and shall not exceed 9 days.
- An exposition license is required.
- A recreational products dealer may have only four off-site expositions per calendar year and at the same location only once every six months.
Static Off-Site Display
New motor vehicle dealer and Recreational Product dealer static off-site displays must be approved by the Commission. Sales activity can NOT occur at a static off-site display.
Vehicle Protection Product Warrantors
Pursuant to Title 32 Chapter 6-A Louisiana Vehicle Protection Act, a person or entity may not operate as a warrantor or represent to the public as a warrantor unless licensed by the commission:
- Any person or entity acting as a vehicle protection product warrantor or warrantor, who is contractually obligated under a warranty agreement for vehicle protection products.
- Vehicle protection product warranty” or “warranty” is a written agreement by a warrantor that provides if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, that the warrantor will pay to or on behalf of the warranty holder specified incidental costs as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty.
- Vehicle Protection Product is a vehicle protection device, system, or service that is installed on or applied to a vehicle, designed to prevent loss or damage to a vehicle from a specific cause, and includes a written warranty.
- Examples of Vehicle Protection Products include but are not limited to alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio, and satellite tracking devices.
Motor Vehicle Sales Finance
Pursuant to Louisiana Administrative Code Title 6. Part VII. Chapter 10-B Louisiana Motor Vehicle Sales Finance Act
§969.35. Authority to make consumer loans; assignees; authority to issue debt waiver or debt forgiveness agreements
A. (1) “Unless a person has first obtained a license from the commission or is exempt from licensing under R.S. 6:969.36, he shall not engage in the business of making consumer loans or the origination of consumer credit sales subject to this Chapter.”
- Required for persons or entities engaging in consumer loan origination or consumer credit sales for any new or used transportation device, including automobiles, motorcycles, trucks, other vehicles that are operated over the public highways and the streets of this state, and a factory built home only if it is anticipated at the time of the transaction that the factory- built home will not be immobilized pursuant to R.S. 9:1149.6.
- Assignees collecting payments or enforcing rights against consumers must also be licensed.
- Required for businesses purchasing motor vehicle credit contracts, notes, or agreements by assignment.
Debt Waiver and Debt Forgiveness Agreements “GAP”, Administrators, and Agents
Pursuant to Louisiana Administrative Code Title 6. Part VII. Chapter 10-B Louisiana Motor Vehicle Sales Finance Act
§969.35. Authority to make consumer loans; assignees; authority to issue debt waiver or debt forgiveness agreements
A. (2) Unless a person has first obtained a license from the commission, or is a supervised financial organization, he shall not engage in business as an administrator or as a salesman or agent involving debt waiver or debt forgiveness agreements.
- Entities managing debt waiver or forgiveness agreements but not directly engaging in consumer lending or credit sales.
- Administrators of the debt waiver or debt forgiveness agreement: Any person or entity, except an employee of an administrator, who directly or indirectly solicits or effects coverage of, underwrites, collects charges or premiums from, or adjusts or settles claims on residents of this state in connection with debt waiver or debt forgiveness agreements.
- Any person whose duties include the sale of a debt waiver or debt forgiveness agreement on behalf of the administrator