Florida Dealer Bond

Florida Dealer Bond


Florida MVD Bond


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What is an Florida Car Dealer Bond? 

Florida Dealer Bonds are required by Florida's DOHSAMV to obtain your Dealer license. The Bond amount is set at $25,000. The bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

The following persons, partnerships and corporations require a dealer license in the state of Florida:

  • Any entity that buys, sells, offers for sale, displays for sale or deals in three or more motor vehicles within any 12-month period.
  • Any entity that buys, sells, offers for sale, displays for sale or deals in one or more mobile home or recreational vehicles within any 12-month period.


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Different parts of a bond:

 There are 3 parts to a surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Surety Bond. The Obligee (Florida Department of Highway Safety and Motor Vehicles Division) is the entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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Program:

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Florida MVD Bond Requirements and Helpful Information:


A minimum surety bond of $25,000 is required with a car dealer license. 

Motor vehicle, mobile home and recreational vehicle dealers must meet the licensing requirements of the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) to conduct business in Florida. Please see sections 320.27320.77 and 320.771, Florida Statutes, and Florida Administrative Codes, 15C-7.003 and 15C-7.004 for additional information.

The following persons, partnerships and corporations require a dealer license in the state of Florida:

 Applicants must complete the following steps in order to obtain their dealer license:

 

  • Step 1, Locate your nearest compliance examiner by going to our locations page, selecting your county and scroll to the Motorist Services Regional Offices section. Requirements for location, display space and office for motor vehicle dealers can be found in Florida Administrative Code 15C-7.003.  Requirements for location, display space and office space for mobile home dealers and recreational vehicle dealers can be found in can be found in sections 320.77 and 320.771 (320.77(3)(g)(h)(i), 320.771(3)(g)(h)(i)), Florida Statutes. 
  • Step 4, Complete a pre-licensing dealer training class requirement from a FLHSMV approved dealer training school; and
  • Step 5, Obtain electronic fingerprinting for all officers of the dealership from a Florida Department of Law Enforcement approved service provider.
  • Step 6, Submit a completed application (see form 86056) to FLHSMV with required documents (see below) and fee to the regional office responsible for the dealership;
  • Step 7, Provide proof of Garage Liability Insurance to the FLHSMV for a minimum of $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection. Independent, auction and wholesale dealer applicants have the option to submit a general liability insurance policy coupled with a business automobile policy, which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury Salvage dealers are exempt from this requirement;
  • Step 8, Provide the FLHSMV with the original surety bond form 86020 for motor vehicle dealers; form 86019 for recreational vehicle dealers and form 86018 for mobile home dealers)
  • Step 10, Provide a copy of completion of dealer training to the FLHSMV; The applicant will be awarded a certificate of completion by a Department approved Dealer Training School after they complete the pre-licensing class. A copy of this certificate of completion is required with the license application.
  • Step 11, Provide a copy of a lease agreement to the FLHSMV; and
  • Step 12, Provide a proof of electronic fingerprinting to the FLHSMV from an FDLE service provider. Applicant must contact the FDLE approved service provider and be electronically fingerprinted. The provider will give the applicant a receipt and submit the fingerprints to FDLE.  Applicant must attach a copy of this receipt with their license application.


Different Dealer Licenses and definitions: 

  • Vehicle Franchised dealer (VF): Allows a licensed dealer to sell new motor vehicles under an established agreement with a manufacturer, importer or distributor. See sections 320.27 and 320.642, Florida Statutes, for additional information.
  • Service facility (SF): Any franchised dealer wishing to operate their service and repair facility at a location other than their licensed dealership must also be licensed to operate the service only facility. No vehicle sales, new or used, are permitted at this facility. See section 320.642 (6), Florida Statutes, for additional information.
  • Vehicle Independent dealer (VI): Allows the licensed dealer to buy, sell or deal in used motor vehicles. See section 320.27, Florida Statutes, for additional information.
  • Vehicle Wholesale dealer (VW): Allows the licensed dealer to buy, sell or deal in motor vehicles only at wholesale with other licensed dealers. A licensed wholesale motor vehicle dealer is licensed to engage exclusively in the business of buying, selling or dealing in motor vehicles at wholesale or through motor vehicle auctions. See section 320.27, Florida Statutes, for additional information.
  • Vehicle Auction dealer (VA): Allows licensed auction dealers to sell motor vehicles and recreational vehicles by the bid process where buyers are licensed motor vehicle dealers. Auctions that plan to sell motor vehicles at retail are required to be licensed as an independent dealer with a VI prefix license. See section 320.27, Florida Statutes, for additional information.
  • Salvage dealer (SD): Allows a licensed salvage dealer to engage in the business of acquiring salvaged or wrecked motor vehicles for the purpose of reselling them, or for parts. See section 320.27, Florida Statutes, for additional information.
  • Mobile home dealer (DH): Allows licensed mobile home dealers to buy, sell or deal in mobile homes. Mobile home dealers may also sell recreational vehicles after applying for a recreational vehicle endorsement on their license with FLHSMV. See sections 320.77 and 320.771(8), Florida Statutes, for additional information.
  • Mobile home broker (BH): Allows a licensed mobile home broker to deal exclusively in used mobile homes and act as the agent or intermediary on behalf of the owner or seller of a used mobile home which is for sale, or who assists or represents the seller in finding a buyer for a used mobile home. See section 320.77, Florida Statutes, for additional information.
  • Recreational motor vehicle dealer (RV): Allows a licensed recreational vehicle dealer to engage exclusively in buying, selling or brokering new recreational vehicles. See section 320.771, Florida Statutes, for additional information.
  • Recreational used motor vehicle dealer (RU): Allows a licensed recreational vehicle dealer to engage exclusively in buying and selling used recreational vehicles. See section 320.771, Florida Statutes, for additional information.

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