Florida Motor Vehicle Dealer Bonds

Licensing Periods for Florida’s Six Dealer Classes

A man gives a "thumbs-up" gesture after buying a new car.

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 info@suretygroup.com.

 

SuretyGroup.com – Your Online Bond Provider.

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