Florida Auto Dealer Bond Requirements

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.

Florida Sample Dealer Bond Form
Used Motor Vehicle Dealer Bond

Bond Amount: $25,000

Required by: Florida Department of Highway Safety and Motor Vehicles (FLHSMV)

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Refund within 30 days
1 Year Bond Starts At
$175
*Based on credit and experience
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How Much Does a Florida Motor Vehicle Dealer Bond Cost?

Our price for a 1 year used motor vehicle dealer bond starts at $175 (for those with the best credit scores). The price of a Florida auto dealer bond is dependent on the applicant’s credit score, credit history, industry experience and years in operations. Those with average credit scores will be quoted at a higher rate than $175. We work with 10 different insurance carriers and are committed to providing the best prices possible for our customers. If you find a better deal elsewhere, give us a call and we’ll try our best to match it.

Note that multi-year discounts are also available if you buy for longer terms. Generally, at least 15% discount is applied per year for a multi-year bond. 

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Commonly Asked Questions: 

What is a Florida Motor Vehicle Bond?

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 state regulations, 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. 

Who Needs a Florida Auto Dealer Bond?

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.

Other Types of Florida Auto Dealer Bond?

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. 

  • Franchise Bond: This is a $25,000 bond meant for dealers who have an agreement with an original equipment manufacturer (i.e., Honda) to sell vehicles on behalf of these manufacturers
  • Wholesale Dealer Bond: This is a $25,000 bond meant for dealers who sell wholesale to other licensed dealers
  • Salvage Dealer Bond: This is a $25,000 bond meant for dealers who only sell at salvage sites 

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. 

How to Get a Florida Auto Dealer Bond? 

Simply start by filling out the form and provide the following information

  • Business name and any applicable fictitious names registered with the Florida Department of State
  • Official address of the dealer
  • Business owner legal name and social security number (a soft credit check is required)

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. 

Time It Takes to Get the Bond

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. 

How to File the Bond? 

You would need to attach a printed copy of your bond with the rest of your dealer application.

How Can I Update my Dealer Bond Form? 

If you need to make changes on the dealer bond form, you can simply call us at (888) 236-8589 or email us at s@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. 

When Do I Need to Renew My 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.

What Kind of Actions Could Result In A Claim Against the Bond? 

  • Fraud
  • Not transfer the vehicle title to the vehicle buyer on time
  • Not remitting sales proceeds to the state government
  • Tax evasion
  • Illegal sales practice such as altering odometers 
  • Fail to disclose that a vehicle has been used for commercial purposes

Is There Any Alternative to the Florida Dealer Bond? 

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. 

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How to Get a Florida Motor Vehicle Dealer License? 

Below are high level steps on how to get a Florida dealer license. For more detailed steps, check out our Florida dealer license guide.

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) from the IRS
Step 6: Obtain a Florida Sales Tax Number by applying via the Florida Department of Revenue site
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 via approved LiveScan operators
Step 11: Sign a Lease Agreement
Step 12: Install a sign
Step 13: Submit Completed Dealer License Application Form

Are there other types of auto dealer bonds that I need in Florida?

There are a few other types of dealer bonds in Florida that apply to specialized dealers. 

  • Franchise Dealer Bond: This is a $25,000 bond meant for dealers who sell franchised/new cars
  • Wholesale Dealer Bond: This is a $25,000 bond meant for dealers who sell wholesale to other licensed dealers
  • Mobile Home Dealer Bond: This is a $25,000 bond meant for dealers who sell mobile homes
  • RV Dealer Bond: This is a $10,000 bond meant for RV dealers 
  • Salvage Dealer Bond: This is a $25,000 bond meant for dealers who only sell at salvage sites

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. 

Is there a credit check required for this bond?

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. 

What if I have bad credit? 

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.

How to prove that I’m bonded?

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.

How are Florida auto dealer bonds priced?

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.

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