Florida Auto Dealer Bond

Motor vehicle dealers in Florida are required to post a bond of no less than $25,000, which serves as a licensing requirement for their operations. The bond expires annually on April 30 for used dealers and on December 31 for franchise dealers.

The premium for the Florida motor vehicle dealer bond is determined by factors such as credit score, business finances, and industry experience. The premium is influenced primarily by credit score, as surety underwriters assess risk based on this factor. Premiums typically range between 1% and 3% of the bond amount. If you have a great credit score, you can expect to pay between $250 and $750 but may pay as little as $188.

1. Complete an Application

To get started with bonding, just complete our online application form. Along with that, provide essential documents and additional details to determine the appropriate bond type and amount. We’re here to help you every step of the way, ensuring a smooth process.

We recently assisted a newly established auto dealer from Florida with their Motor Vehicle Dealer Bond application. Despite their knowledge of the automotive industry, they sought guidance on the intricate details of the bond and its potential impact on their business operations. Recognizing their dedication to customer satisfaction, we offered tailored support throughout the application process. By streamlining the requirements, we facilitated their navigation of Florida's regulations, resulting in a seamless launch and establishing their reputation as a reliable motor vehicle dealer.

2. Complete the Premium Payment Process

Upon receiving your application, our team immediately starts the underwriting process and subsequently furnishes you with the relevant premium. The process continues after payment.

3. Receive Your Bond

Once your bond premium is paid, you are officially bonded. Your bond will be sent to you via email, and a paper copy will be mailed if necessary.

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – just call us at (877) 514-5146.

The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) requires motor vehicle dealers to file a surety bond when obtaining a motor vehicle dealer license in order to operate in the state, according to Florida Statutes 320.27.

Motor vehicle dealers should mail the completed bond form to their local FLHSMV regional office as part of the dealership license application process to meet the bonding requirement.

As we mentioned in the beginning of the article, bonds for independent dealers in Florida need to be renewed before April 30th and bonds for franchise dealers before December 31st, according to their renewal period (it could be every year or every two years). If you want to keep your Florida dealer license, you will need to renew the bond as well.

We send out bond renewal reminders well ahead of the expiration date of your bond, to make sure you never miss a deadline. If you’re pressed for time, we can email or fax you your motor vehicle dealer bond, as soon as it is signed by us.

Bond renewal quotes can vary from year to year if there is a change in your personal credit score or financial status. This means that, with good finances, your premium may go down from one year to the next.

Submitting a claim in Florida highlights how a motor vehicle dealer's bond safeguards customers, prioritizing their protection over the business. It guarantees the delivery of adequate services. Nonetheless, involvement in fraudulent activities or regulatory breaches may lead to a bond claim.

If the claim is deemed valid, your business could face substantial financial consequences, requiring reimbursements to be paid to affected parties, up to the bond's penal amount. Initially, your surety covers these expenses, but you remain accountable for all costs incurred and must reimburse the surety.

In Florida, anyone intending to sell new or used vehicles, or to operate as an auto broker or wholesaler, must obtain a Florida auto dealer license. This requirement is enforced to regulate the automotive industry and ensure consumer protection. To legally engage in the sale of automobiles, whether as a dealership, brokerage, or wholesale operation, you must apply for and receive a dealer license through the Department of Highway Safety and Motor Vehicles.