Bond Term: 1 year or 2 years
Obligee: Florida Department of Highway Safety and Motor Vehicles
$25,000 Bond Limit
$10,000 Bond Limit
No, you only need one bond. If you already have the $25,000 bond, it can be used for all the license classification that it is intended for.
The professions of motor vehicle dealers involve servicing, repairing and selling of vehicles, which has a lot of inherent risk. The Florida Department of Highway Safety and Motor Vehicles instituted the dealer bond requirement to protect the 3rd parties doing business with the bonded dealers. When a Florida dealer commits a fraud against a customer (i.e., selling a car without a title), the customer could file a claim against this bond. Then the surety carrier would assemble a team to investigate the claim, if the claim is found to be valid, then the customer would receive a compensation up to the bond amount.
If there is a claim on your bond, your current bond would likely be canceled and you will either be denied a bond or have to purchase a very expensive bond. You need a bond to keep your license so it would be very expensive if a claim is found to be valid. Therefore, it makes a ton of sense to avoid a claim from ever being filed on your bond. This is quite easy. There are specific actions you can take to prevent a claim from being filed on your bond:
This is not an inclusive list of all the actions you should take. During your dealer education process, you should be taught the actions that would result in claims. Please don’t do those things.
April 30 of each year for the following bonds
September 30 of each year for the following bonds
December 31st of each year for the following bonds
Given that the Florida motor vehicle dealer bond is of the standard $25,000, the major determinant on the bond is the inherent risk involved in the class of dealership and the credit profile of the applicant.
Typically, franchise dealers become franchisees of a specific brand such as Honda through heavy vetting. The automotive original equipment manufacturer (OEM) such as Honda typically looks at the history of the applicant, their financial strength, and experience within the industry. It can take a year from start to finish to be a franchisee. In some ways, the automotive OEMs vetted on behalf of the surety company. Therefore, it is much less risky for franchisees to be awarded a bond. On the other hand, independent used dealers are not vetted by automotive OEMs and tend to have less financial strength, so it presents much more risk to the surety carriers. Therefore, typically, franchisee is charged at a lower rate than independent dealers.
Credit score and credit history are measures of trustworthiness of the applicant. Surety carriers see both as barometers of the probability that a claim is made against the bond. The higher the credit score and the longer credit history the applicant has, the lower the rate on the bond
Yes, you can buy FL Auto Dealer Bond for a maximum of two years. A lot of our customers buy a bond for a two year term because buying a multi-year bond will get a more affordable annual rate.
Typically, you would need to submit your bond in person at one of Florida’s many motor vehicle field operation offices. You can choose to mail the bond but if your bond is rejected, you would not know right away. We have listed out the motor vehicle field operation offices below, categorized by countries they are located. You will need to submit the original bond with a power of attorney form to an of the motor vehicle field operation offices below:
Address: 1135 Banks Road Margate, Florida 33063
Phone: (954) 969-4216 option 0
Address: 318 Southeast 25th Avenue Ocala, Florida 34471
Phone: (352) 512-6782 option 3
Address: 9550 Regency Square Boulevard, Suite 100 Jacksonville, Florida 32225
Phone: (904) 365-2681
Address: 1697 N Woodland Blvd Suite 111D Deland, Florida 32720
Phone: (386) 327-9220 option 3
Address: 4101 Clarcona-Ocoee Road, Suite 160 Orlando, Florida 32810
Phone: (407) 445-7400 option 3
Address: 5701 East Hillsborough Avenue Suite 2228 Tampa, Florida 33610
Phone: (813) 612-7110 option 4
Address: 2900 Apalachee Parkway, Room B-152, MS-76 Tallahassee, Florida 32399-0600
Phone: (850) 617-2999 option 2
Address: 6030 County Road 2321 Panama City, Florida 32404
Phone: (850) 767-3660 option 1
Address: 100 Stumpfield Road Pensacola, Florida 32503
Phone: (850) 475-5415 option 1
Address: 323 10th Avenue West, Suite 200 Palmetto, Florida 34221
Phone: (941) 723-4551 option 6
Email: DmvRegion8 @flhsmv.gov
Address: 901 Northpoint Parkway, Suites 115 & 116 West Palm Beach, Florida 33407
Phone: (561) 640-6820 option 5
Address: 12601 NW 42nd Avenue Opa Locka, Florida 33054
Phone: (786) 804-4180
Email: DmvRegion10@flhsmv. gov
Given that you are going in person to submit the bond, typically a staff member from the motor vehicle field operation offices will tell you if your bond is accepted or rejected.
Apart from the standard information such as insurance company and business name, the following additional information are required on your bond
Yes, an irrevocable letter of credit can be used in place of a surety bond. This irrevocable letter of credit needs to be of the exact same amount of the surety bond. For example, you need to have an irrevocable letter of credit of $25,000 to use in place of the Florida surety bond of $25,000.
Yes, you can. You typically have 30 days from the date of cancellation request to the date when the bond is officially canceled. Your refund will be a prorated amount based on the effective date and the cancellation date of your bond. Please note that once we cancel the bond, we will need to inform the Florida Department of Highway Safety and Motor Vehicles, who will then suspend your license. You need your bond to be active as long as you have your license.