The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) requires that both used and new/franchise auto dealers obtain a $25,000 auto dealer bond in order to be licensed. This is outlined in Chapter 320 of the Florida Statutes. Selling three or more cars without a license in Florida is illegal and can result in fines. Our most common bond is the Used Motor Vehicle Dealer Bond. We've helped hundreds of dealers get licensed at SuretyNow. You can get started with a quote in minutes.
If you are from Georgia, check out the Georgia Auto Dealer Bond Page.
Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.
Bond Amount: $25,000
Required by: Florida Department of Highway Safety and Motor Vehicles (FLHSMV)
Florida Motor Vehicle Dealer Bond, also referred to as a Florida Auto Dealer Bond, Car Dealer Bond, DMV Bond, is a legal agreement involving three parties: the surety company, the Florida Auto Dealer (bond’s principal), and the Florida Department of Highway Safety and Motor Vehicles (the obligee). The bond is for the surety company to extend credit of confidence to the approved dealers that they will abide by the Chapter 320 of the Florida Statutes.
If the dealer fails to comply with terms set forth in Chapter 320 of the Florida Statutes, i.e., engaging in fraudulent activities or providing false information about a vehicle, a claim can be made against the bond. The surety company will be called on to investigate the validity of the claim. If the claim is deemed valid, the surety company will pay the total penal sum. Nonetheless, the principal remains responsible for repayment and the surety company will recover as much of the amount paid as possible from the principal.
The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) requires that both used and new/franchise auto dealers obtain a $25,000 auto dealer bond in order to be licensed. This is outlined in Chapter 320 of the Florida Statutes.
Other than the used car motor vehicle dealer bond, there are a few other types of dealer bonds in Florida that apply to specialized dealers.
Vehicle brokers do not require a license to sell in Florida. We understand Florida auto dealer requirements can be complicated. If there is anything unclear, give us a call and we’ll help you figure out the bond that you need.
Simply start by filling out the form and provide the following information
Then we will reach out to 10+ insurance partners we work with to find the most affordable quote for you. If you are happy with the price, you will be given a payment link. Once paid, the hard copy of a signed and sealed bond will be mailed to your address on file.
You can expect to receive the electronic copy of your bond within 3 business hours after you completed your application online, given you made your payment online promptly. The hard copy of your signed and sealed bond will arrive at your address 3 business days after your payment. It will be mailed via UPS Express and a tracking number will be shared with you.
You would need to attach your bond with the rest of your dealer application. For details on how to submit your dealer application, please refer to our article on How to Get an Auto Dealer License in Florida.
Additional FAQs
If you need to make changes on the dealer bond form, you can simply call us at (888) 236-8589
or email us at bruce@suretynow.com telling us your bond and the changes you need to make. Then, we will simply email you a rider form which is seen as an official change to your bond.
Your Bond has a minimum of one year term but you can choose to buy for a two-year period. The Florida Used Car Dealer License has a common expiration date of April 30th. On the other hand, the Florida Franchise Dealer License has a common expiration date of December 31st.
In Florida, the state mandates a 30-day cancellation clause on the bond. Essentially, this clause means that if the surety bond is not renewed by April 1st or December 1st of the expiration year, the insurance company will send a notice of cancellation to both the bondholder and the Florida Department of Highway Safety. The bondholder will then have 30 days to renew the bond. If the bondholder decides to switch insurance companies, the current bond will be canceled and a new original surety bond will be issued.
If you don’t want to get a surety bond, you can also apply for an irrevocable letter of credit prescribed by Section 320.27(10), F.S., in the amount of $25,000. This letter of credit must be from a bank authorized to do business in Florida. An irrevocable letter of credit is essentially a promise by the bank of the applicant to pay Florida Department of Highway Safety and Motor Vehicles under certain conditions (i.e. if the dealer applicant broke the law). However, this option is much more difficult to obtain.
Step 1: Determine the Type of Motor Vehicle Dealer License You Need
Step 2: Complete and Pass a Pre-Licensing 16 Hour Dealer Training Course
Step 3: Determine Your Business Corporate Structure
Step 4: Set Up Your Business Corporate Structure and Complete the Required Documents
Step 5: Obtain Your Federal Employer Identification Number (FEIN)
Step 6: Obtain a Florida Sales Tax Number
Step 7: Find a Dealership Location and Display Lot and Get Approval from DHSMV office
Step 8: Obtain Garage Liability Insurance
Step 9: Obtain an Auto Dealer Surety Bond or Line of Credit
Step 10: Complete Electronic Fingerprinting
Step 11: Sign a Lease Agreement
Step 12: Install a sign
Step 13: Submit Completed Dealer License Application Form
There are a few other types of dealer bonds in Florida that apply to specialized dealers.
Vehicle brokers do not require a license to sell in Florida. We understand Florida auto dealer requirements can be complicated. If there is anything unclear, give us a call and we’ll help you figure out the bond that you need.
Insurance companies usually do a "soft credit check" on the applicant for Florida auto dealer bonds to assess eligibility and pricing. This does not impact your credit score in any way.
A credit score under 650 is considered to be "poor." We work with insurance companies that specialize in providing coverage to this market. If your credit score is less than ideal, please give us a call, and we'll help you find the most affordable insurance quote by shopping around on your behalf.
Upon approval of your dealer bond application, we will provide you with a PDF copy of the bond via email as proof of your bonding status.
There are many factors that go into determining the cost of a Florida dealer bond, such as the applicant's credit score, dealer experience, and insurance provider. The applicant's credit score is typically the most significant factor, followed by the insurance company. We partner with over 10 insurance companies to offer our clients the most competitive rates. If you find a better rate elsewhere, let us know and we’ll do our best to match it.