The Florida Motor Vehicle Dealer bond is a type of surety bond and is required by Florida’s Department of Highway Safety and Motor Vehicles. The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) Bureau of Dealer Services issues and renews licenses for more than 15,0000 motor vehicle, auction, salvage, wholesale, mobile home, recreational vehicle dealers and manufacturers, distributors and importers each year.
The bond states that the bondholder shall fully comply with the conditions of any written contract. Contracts made in connection with the sale or exchange of a motor vehicle. Bonds shall be in favor of any person who suffers a loss or damages resulting from the bondholder’s failure to comply with the conditions of the bond. The bond has a common renewal date of April 1. The required bond amount is $25,000.
Who needs a Florida Motor Vehicle Dealer bond?
According to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), you need a license to sell cars in Florida if you:
- Buy, sell, lease, or deal in 3 or more motor vehicles within a 12-month period.
- Display 3 or more motor vehicles for sale or lease within a 12-month period.
- Sell cars as a hobby or side business, even if you don’t meet the above criteria.
If you sell fewer than 3 cars within a 12-month period, you are not required to have a license, but you are still subject to the same laws and regulations as licensed dealers. For example, you must still disclose the odometer reading and any known defects to the buyer.
How do the Motor Vehicle Dealer Licenses Differ?
A Vehicle Franchised dealer sells new motor vehicles under an established agreement. Whereas, the Vehicle Independent dealer buys, sells or deals in used motor vehicles. A $25,000 bond is required for both.
Learn more by reading the Car Dealer License Guide.
- Attend a pre-licensing dealer training course. This course must be approved by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). The course covers the laws and regulations governing the sale of motor vehicles in Florida.
- Obtain a permanent business location. Your business location must meet specific requirements, such as having a minimum floor space and being located in a commercial area.
- Compile the required documents. These documents include:
- A completed application form
- A copy of your driver’s license
- A copy of your Federal Employer Identification Number (FEIN)
- Obtain proof of liability insurance. The minimum liability insurance coverage required is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $10,000 for property damage.
- Obtain your auto dealer bond.
Find additional licensing information at FL Motor Vehicle Dealer Licensing Requirements.
How do I apply for the bond?
At Surety1.com we make it easy to obtain your Florida Motor Vehicle Dealer Bond. Our 3 step process is:
- Complete our easy to use and secure online application.
- Review your free, no obligation quote from one of our professional surety bond agents, usually within 1 business day.
- Sign some paperwork and make payment (all major credit cards accepted).
Once these steps have been completed, your Motor Vehicle Dealer bond will be mailed to you via tracible mail. The state requires an original signature of the bond principal. (Applicant). Overnight delivery is available for an additional fee.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003 and represents over a dozen, “A” rated, surety companies. We also maintain an A+ rating from the Better Business Bureau.