Florida Motor Vehicle Dealer Bond

Comprehensive Guide to Florida Motor Vehicle Dealer Bonds

If you’re planning to operate as a motor vehicle dealer in Florida, one of the key requirements you’ll need to fulfill is obtaining a Florida Motor Vehicle Dealer Bond. This guide will walk you through everything you need to know about these bonds, including what they are, why they’re required, how to get one, and how to maintain compliance.

How to Get a Florida Motor Vehicle Dealer Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Florida Motor Vehicle Dealer Bond will be shipped to the bond applicant. You must then submit to the FLHSMV as part of your dealer license application or renewal.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

The cost of the surety bond is usually between 1% and 3% of the bond amount

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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What is a Florida Motor Vehicle Dealer Bond?

A Motor Vehicle Dealer Bond is a type of surety bond required by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) for individuals or businesses operating as motor vehicle dealers. The bond serves as a financial guarantee that the dealer will comply with state laws and regulations governing the sale and distribution of motor vehicles.

If a dealer violates these laws (e.g., fraud, misrepresentation, or failure to transfer titles), a claim can be made against the bond to compensate affected parties. The bond protects consumers and ensures ethical business practices in the automotive industry.

Why is a Motor Vehicle Dealer Bond Required in Florida?

The Florida Motor Vehicle Dealer Bond is required to:

• Protect Consumers: The bond ensures that customers have financial recourse if they suffer losses due to illegal or unethical practices by the dealer.
• Promote Compliance: It encourages dealers to adhere to state laws and regulations, such as proper titling, accurate odometer readings, and honest sales practices.
• Maintain Industry Standards: The bond helps maintain trust and integrity in the automotive sales industry.

Who Needs a Florida Motor Vehicle Dealer Bond?

The following types of motor vehicle dealers in Florida are required to obtain a bond:

• Independent Motor Vehicle Dealers: Dealers who sell used vehicles.
• Franchise Motor Vehicle Dealers: Dealers who sell new vehicles under a manufacturer’s franchise.
• Wholesale Motor Vehicle Dealers: Dealers who sell vehicles to other dealers or licensed wholesalers.
• Auction Motor Vehicle Dealers: Dealers who sell vehicles through auctions.

Florida Motor Vehicle Dealer Bond Amounts

The bond amount required depends on the type of dealer license:

• Independent Dealers: $25,000 bond
• Franchise Dealers: $25,000 bond
• Wholesale Dealers: $25,000 bond
• Auction Dealers: $50,000 bond

Maintaining Your Florida Motor Vehicle Dealer Bond

Once you’ve obtained your bond, it’s important to maintain compliance to avoid claims or penalties:

• Renew Your Bond Annually: The bond must be renewed each year to remain active. Failure to renew can result in the suspension of your dealer license. Surety1 will send out renewal reminders.
• Follow State Laws: Adhere to all Florida motor vehicle dealer regulations, including proper titling, accurate odometer disclosures, and ethical sales practices.
• Address Claims Promptly: If a claim is filed against your bond, work with the surety company to resolve it quickly to avoid further complications.

What Happens if a Claim is Filed Against Your Bond?

If a customer or the state files a claim against your bond, the surety company will investigate the claim. If the claim is valid, the surety will pay out up to the bond amount to compensate the claimant. However, you are responsible for reimbursing the surety company for any payouts, as the bond is a form of credit, not insurance.

Frequently Asked Questions (FAQs)

Q: Can I operate without a Motor Vehicle Dealer Bond in Florida?
A: No. A bond is a legal requirement for obtaining and maintaining a motor vehicle dealer license in Florida.

Q: What happens if I don’t renew my bond?
A: Failure to renew your bond can result in the suspension or revocation of your dealer license.

Q: Can I cancel my bond?
A: Yes, but the surety company must notify the FLHSMV, and your license may be suspended until a new bond is in place.

Q: Is the bond refundable?
A: The First year premium is usually non-refundable. After that, a pro rated refund maybe available. 

Why Choose Surety1.com?

• Experience: Surety1 has been in business since 2003, specializing in surety bonds nationwide, with specific experience in Florida.
• Variety: We offer a wide range of Florida surety bonds for various professions and industries.
• Competitive Rates: We offer competitive rates and work with over a dozen surety bond companies to find the best price for you.
• Easy Online Application: Our user-friendly and secure online application process make for for quick and convenient bonding.
• Licensed Nationwide: Licensed in all 50 states to serve all your surety bond needs.
• Fast Service: We offer fast turnaround times for bond issuance.
• Support: Surety1 has a team of surety bond professionals available to answer your questions and guide you through the process.
• Positive Reviews: Surety1 has an A+ rating with the Better Business Bureau and positive reviews online.
• Surety Bond Only Agency: Surety1 only provides surety bonds. Benefits of Working With a Surety Bond Only Agency

Conclusion

Obtaining a Florida Motor Vehicle Dealer Bond is a crucial step in starting and maintaining your automotive dealership business. By understanding the requirements, costs, and responsibilities associated with the bond, you can ensure compliance with state regulations and build trust with your customers. Work with a reputable surety bond provider to secure your bond quickly and efficiently, and always prioritize ethical business practices to avoid claims and protect your dealership’s reputation.

If you have further questions or need assistance, consult with a licensed surety bond agent or the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). Good luck with your motor vehicle dealership!