Florida Auto Dealer Bond$25,000 FLHSMV Required

Florida issues four primary motor vehicle dealer license types: Vehicle Independent (VI) for used car sales to the public, Vehicle Franchised (VF) for new car sales under manufacturer agreement, Vehicle Wholesale (VW) for dealer-to-dealer sales only, and Vehicle Auction (VA) for auction operations. All four types require the same $25,000 surety bond on HSMV Form 86020 under Section 320.27, Florida Statutes.

Florida auto dealer bonds ($25,000) cost $188-$2,500 annually. With excellent credit (750+), expect $188-$500 (0.75-2%). Good credit (680-749) costs $500-$1,000 (2-4%). Fair credit (620-679) ranges $1,000-$1,750 (4-7%). Lower credit may require up to $2,500 (10%). Pro-rated bonds are available since independent (VI), wholesale (VW), and auction (VA) dealer bonds expire April 30. Franchised (VF) dealer bonds expire December 31.

Independent (VI), wholesale (VW), and auction (VA) dealer bonds expire April 30 annually, creating a synchronized renewal cycle. Franchised (VF) dealer bonds expire December 31 instead. The renewal form is HSMV 86720, with a $75 annual renewal fee (or $150 biennial). If you obtain your initial license mid-year, your first bond term is pro-rated.

Florida requires all first-time dealer license applicants to complete a pre-licensing dealer training course through an FLHSMV-approved school before submitting their application. The certificate of completion must be included with your application package. Continuing education is also required for independent motor vehicle dealers at renewal.

Florida requires garage liability insurance with a minimum $25,000 combined single-limit coverage including both bodily injury and property damage protection, plus $10,000 in personal injury protection (PIP). Proof of insurance must be submitted with the dealer license application and maintained continuously. This is separate from and in addition to the $25,000 surety bond.

Florida requires an established place of business at a commercially zoned location with adequate square footage for the dealer type. The facility must have permanent signage, an enclosed office for completing transactions, and be accessible to the public during posted business hours. FLHSMV reviews location compliance as part of the application process.

Yes. We work with specialized carriers for higher-risk applicants and regularly approve applicants with credit scores as low as 500. Rates for the $25,000 Florida bond with challenged credit typically range 5-10% ($1,250-$2,500). The relatively low $25,000 bond amount makes Florida one of the more affordable states even with poor credit.

If your surety bond expires, is canceled, or lapses, FLHSMV will suspend your dealer license immediately. You cannot buy, sell, or advertise motor vehicles during the suspension. Sureties must provide 30 days written notice to FLHSMV before cancellation. To reinstate, you must provide a new bond and may be subject to additional fees and penalties.

The full FLHSMV dealer licensing process typically takes 4-8 weeks from submission of a complete application. The bond itself can be issued within 1 business day. Factor in time for the pre-licensing course, location setup, insurance procurement, and FDLE background check. Incomplete applications are the most common cause of delays.