Florida Auto Dealer Bond

When calculating surety bond costs, you need to know two numbers. The first one, called the total bond amount, is the maximum penal sum up to which you may have to compensate a claimant in case of a successful claim. The bond premium, on the other hand, is the percentage of the total bond amount you pay, in exchange for obtaining the auto dealer bond. This means your actual surety bond cost, the premium, is a small percentage of the total bond amount.

The bond premium is calculated based on several factors about you and your business, but the most important factor is your personal credit score. Applicants with good credit typically pay no more than 3% of the total bond amount.

Other factors that can come into play in determining the premium for your Florida auto dealer bond are your personal and business financials, your assets and liquidity, as well as your industry experience.

For a more detailed explanation, make sure to check out our “Surety Bond Cost” page.

Bad credit bonding is a bit trickier, as the surety underwriter considers auto dealers with bad credit to be a higher risk.

Fortunately, it’s still possible to obtain your auto dealer bond, but to compensate for the risk, sureties will raise your premium. Bad credit applicants usually pay premiums between 5% and 15%. Lance Surety Bonds works with more than 20 A-rated and T-listed sureties, so we are committed to helping you obtain a Florida auto dealer license, regardless of your credit score.

Now that you understand the costs associated with obtaining your surety bond, the next step is to apply. Use our straightforward online application to submit your request, and receive approval in just minutes.

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

If you want to learn more about the process of obtaining an auto dealer bond, read our “How to Get Bonded” page.

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 auto dealer bond, as soon as it is signed by the surety bond company.

Bond renewal quotes can be different 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.

Obtaining an auto dealer bond is just one of the requirements you need to fulfill before getting licensed in Florida.

You also need to have an approved business location, obtain a sales tax numbers, submit fingerprints and attend a pre-licensing course at an approved institution. For a full list of auto dealer licensing requirements in Florida, check out the website of the Department of Highway Safety and Motor Vehicles.

Florida auto dealer bonds are there to protect your customers, so using fraudulent practices or violating the bond agreement in some way can cause you to have a claim filed against you.

If the claim is valid you may be ordered to pay up to $25,000 in compensation, so it’s highly advisable to avoid claim at all costs. Not only do they cost you money, but they hurt your reputation, and make it harder to get your next auto dealer bond.