Licensing Periods for Florida’s Six Dealer Classes
If you are selling motor vehicles in Florida, chances are you need to be licensed. Dealing three or more motor vehicles in a 12-month period is considered to be a business. A part of doing business in Florida involves obtaining either a surety bond or a letter of credit before a license can be issued. This ensures that motor vehicle dealers conduct business ethically and comply with state laws.
Florida has six classes of Motor Vehicle Dealer Licenses with a bond amount of $25,000:
Independent Dealer licenses are for those selling used cars only, at retail or wholesale. The license period is from May 1 – April 30.
Franchise Dealers licenses are for new car sales from the manufacturer, and the license also allows for used car sales. The license period is from Jan. 1 – Dec. 31.
Service Facility licenses are for those who do maintenance and repair on vehicles. The license period is from Jan. 1 – Dec. 31.
Wholesale Dealer licensees may only buy from, sell to and deal at wholesale with other licensed dealers. The license period is from May 1 – April 30.
Auction licensees deal with the auction bid process for licensed dealers. The license period is from May 1 – April 30.
Salvage licensees deal with salvaged or wrecked vehicles. The license period is from May 1 – April 30.
Surety Bonds are also required for other businesses in the motor vehicle industry:
Mobile Home Dealers: A license is required for anyone that deals in one or more new mobile homes in a 12-month period. A surety bond of $25,000 is required, and the license period runs from Oct. 1 – Sept. 30.
Mobile Home Brokers: A licensee may only sell used mobile homes at retail or wholesale. A $25,000 surety bond is required.
Mobile Home Installers must be bonded for $5,000, and Mobile Home Manufacturers are required to have a $50,000 bond.
Recreational Vehicle Dealers: Licensees deal in one or more recreational vehicles during a 12-month period. There are two classes of licenses. Both require a $10,000 bond and expire on Sept. 30.
New Recreational Vehicle Dealer – can sell new and used vehicles.
Used Recreational Vehicle Dealer – can only sell used recreational vehicles.
Recreational Vehicle Manufacturer, Distributor, Importer or Van Converter licensees must be bonded for $10,000.
Bond premiums depend on various factors including the bond amount, the dealer’s financial strength, experience in the industry and stability in the market.
How to Get Bonded
If you are a motor vehicle dealer in Florida and you need a surety bond, SuretyGroup.com can help. Our Surety Bond Specialists can give you a free, no-obligation quote and walk you through the bonding process.
Contact our Surety Bond Specialists to get started. Call 1‑844‑432‑6637 or email email@example.com.
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