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Florida Auto Dealer Bond

Florida Auto dealerships operating within the state must obtain the proper licenses and a $25,000 Dealer Surety Bond. This is to ensure the motor vehicle dealership is operating within the regulations outlined by the Florida Highway Safety and Motor Vehicles Department.  These bonds may also be referred to as Motor Vehicle Dealer (MVD) Bonds, DMV Bonds, Vehicle Dealer Bonds, Car Dealership Bonds, Car Dealer Bonds & Used Car Dealer Bonds.

How Much Do Florida Dealer Bond Cost?

Florida dealer surety bonds require underwriting and are based on personal credit of all the owners. You can expect to pay anywhere from $188 and up a year based on excellent credit, with an option to get a 2 year bond for $329. For dealerships with lower credit ratings, we can still offer the most competitive premiums with financing being an option as well to help you purchase the appropriate bond.

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Florida Dealer Bonds for $25,000 Start from $188/year

All Florida Dealer Bonds Expire on April 30th.

All Dealer Bonds are issued and emailed on the same day.

The State of Florida requires a 30-day cancellation clause on the bond.  What this means is that on April 1st of the expiration year, if you have not renewed your surety bond, the insurance company will send you and the Florida Dept. of Highway Safety a cancellation notice at which time you will have 30 days to renew the bond. If you switch insurance companies, the bond will cancel and you will be issued a new original surety bond.

Why Do I Need A Dealer Bond?

FL dealer bonds are required by the Florida Department of Highway Safety and Motor Vehicles.  Any person that is licensed as an Independent motor vehicle dealer (VI), Wholesale motor vehicle dealer (VW), Motor vehicle auction (VA), or a Salvage motor vehicle dealer (SD) must maintain an active dealer surety bond in order to keep their license active. Failure to keep a current bond will result in the loss of your dealer license with the State of Florida.

Who needs the Florida Used Motor Vehicle Dealer Bond?

In the State of Florida, Auto Dealers are required to obtain a $25,000 Motor Vehicle Dealer Bond to be in compliance with Section 320.27 of the Florida Statutes. All Florida motor vehicle dealer bonds have a common expiration date of April 30th.

What is the Florida Used Motor Vehicle Dealer Bond?

The Motor Vehicle Dealer Bond protects the party requesting the surety bond, the Oblige, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your auto dealer bond, you are telling the Oblige that you can be trusted and that you stand by your business decisions.

What else do I need besides the Used Motor Vehicle Dealer Bond?

In addition to the bond, the State of Florida requires that you carry garage liability insurance. Motor vehicle dealers must obtain:

  • A garage liability insurance certificate 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 protection; OR
  • 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 protection

What To Do After Purchasing A Florida Dealer Bond

After you receive your auto dealer bond from Absolute Surety, you will need to sign it, submit it with the attached power of attorney to your DMV office (along with other licensing paperwork required for your entity). Please contact your regional office to see whether they will need the original or will accept a copy.

Dealers will submit the original signed bond form to the State of Florida Department of Highway Safety and Motor Vehicles at the following address:

State of Florida

Department of Highway Safety and Motor Vehicles

2900 Apalachee Parkway

Room A312, Mailstop #65

Tallahassee, Florida 32399-0500

Tel  850-617-3003

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More Information about Florida Dealer Bonds Q&A

  • Are motor vehicle dealers required to be licensed?

    Yes. Motor vehicle dealers must meet Florida Department of Highway Safety and Motor Vehicles (FLHSMV) licensing requirements. See section 320.27, Florida Statutes, for additional information.

  • Is a motor vehicle broker required to meet licensing requirements?

    No. The FLHSMV does not license entities that meet the definition of a “motor vehicle broker.” See section 320.27(1)(c)(5) and 320.27(1)(d), Florida Statutes, for additional information.

  • Are licensed mobile home dealers allowed to sell recreational vehicles at their location?

    Yes. Mobile home dealers may sell recreational vehicles at their licensed location provided they submit proof of garage liability insurance to the FLHSMV which must include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection. See section 320.771(8), Florida Statutes, for additional information.

  • Are mobile home dealers allowed to transact business in recreational vehicles with a motor vehicle auction?

    Yes. A mobile home licensed dealer with a recreational vehicle endorsement on their license may transact business in recreational vehicles with a motor vehicle auction.  See section 320.77(1)(a), Florida Statutes, for additional information.

  • Is a licensed mobile home dealer allowed the benefit of using a dealer license plate?

    No. Any licensed dealer exclusively dealing in mobile homes shall not have the benefit of using dealer license plates. See section 320.77(1)(a), Florida Statutes, for additional information.

  • Are mobile home dealers required to register the salesperson(s) they hire with the FLHSMV?

    Mobile home dealers must register their salesperson(s) with the FLHSMV.  Form 84045 must be completed and submitted by the licensed mobile home dealer to the FLHSMV.  See section 320.77(9), Florida Statutes, for additional information.

  • Are recreational vehicle dealers allowed to transact business in recreational vehicles with a motor vehicle auction?

    Yes. A licensed recreational vehicle dealer may transact business in recreational vehicles with a motor vehicle auction. See section 320.771(1)(a), Florida Statutes, for additional information.

  • Are licensed recreational vehicle dealers allowed to retail or wholesale a motor vehicle they have acquired in exchange for the sale of a recreational vehicle?

    Yes. A licensed recreational vehicle dealer may, at retail or wholesale, sell a motor vehicle acquired in exchange for the sale of a recreational vehicle if such acquisition is incidental to the principal business of being a recreational vehicle dealer. See section 320.771(1)(a), Florida Statutes, for additional information.

  • Can a licensed recreational vehicle dealer buy a motor vehicle for the purpose of resale?

    No. A licensed recreational vehicle dealer may not buy a motor vehicle for the purpose of resale unless licensed as a motor vehicle dealer. See section 320.771, Florida Statutes, for additional information.

  • Are licensed independent dealers and franchised dealers allowed to sell new recreational vehicles?

    No. Licensed independent motor vehicle dealers and franchised dealers cannot sell new recreational vehicles unless they apply for and obtain a recreational vehicle dealer license with the FLHSMV.

  • Are park trailers considered recreational vehicles in the state of Florida?

    Yes. Park trailers are considered recreational vehicles in the state of Florida. See sections 320.27, 320.822 and 320.8231, Florida Statutes, for additional information.

  • Are wholesale dealers exempt from display provisions?

    Yes. Wholesale dealers are exempt from display requirements since no retail sales will be conducted. See section 320.27(1)(c)(3), Florida Statutes, for additional information.

  • Are wholesale dealers allowed to use dealer plates?

    No. Wholesale dealers are not allowed to use dealer plates.  See section 320.27(1)(c)(3), Florida Statutes, for additional information.

  • To whom may a wholesale dealer sell to?

    A wholesale dealer can only sell to licensed dealers or auctions. See section 320.27(1)(c)(3), Florida Statutes, for additional information.

  • Who is allowed to bid on behalf of a dealership at an auction?

    Only licensed dealers or bona-fide employees of such dealership, who are authorized by the dealership to bid on behalf of the dealership, are allowed to bid at an auction. See section 320.27(1)(c)(4), Florida Statutes, for additional information.

  • Can licensed auction dealers retail vehicles to the public?

    No. Licensed auction dealers are not permitted to retail to the public. If an auction dealer wishes to sell used vehicles at retail, an independent dealer license must be obtained. See section 320.27, Florida Statutes, for additional information.

  • Can independent motor vehicle dealers and franchised motor vehicle dealers sell recreational vehicles acquired in trade?

    Independent motor vehicle dealers and franchised motor vehicle dealers can sell recreational vehicles that they acquire in a trade; however, in order to sell new/used recreational vehicles that were not acquired in trade, a recreational vehicle dealer license is required. See section 320.27, Florida Statutes, for additional information.

  • Does a franchised dealer license allow the sale of any line-make?

    A franchised dealer license allows the licensee to sell only the line-make(s) for which they have been approved. A franchised dealer who wishes to sell more than one line-make must be approved by the manufacturer and meet the requirements specified in section 320.642, Florida Statutes.   The notice of approval from the manufacturer will be published in the Florida Administrative Register by the Department.  Franchised dealers selling the same line-make in the same or contiguous counties can file a protest with the Department within 30 days following the date of the publication. If a protest is received, the case will be forwarded to the Division of Administrative Hearings.  If no protest is received, the Department will issue a final order approving the line-make for the dealership.  The dealer must submit an application to add the line-make to their license on form 86072 to the Regional Office. See sections 320.27, 320.60(1) and 320.642, Florida Statutes, for additional information.

  • Are bus manufacturers required to be licensed by the FLHSMV?

    No. The FLHSMV does not license manufacturers, importers or distributors of buses, as buses do meet the definition of a motor vehicle per section 320.60(10), Florida Statutes.

  • Is a dealer license required to sell buses?

    Yes. An independent motor vehicle dealer license is required to sell buses.