Anyone planning to engage in vehicle sales in Florida must obtain a surety bond before being granted a license. The Florida Department of Highway Safety and Motor Vehicles mandates an auto dealer bond to protect customers against financial losses that result from a dealer’s breach of contract in connection with a retail or wholesale vehicle transaction.
Florida Auto Dealer Bond at a Glance
- Purpose: To protect consumers and the state by guaranteeing that Florida dealers follow all laws and contractual obligations during vehicle sales.
- Who needs it: All independent (used), franchise (new), mobile home, and recreational vehicle (RV) dealers - both those with four or fewer supplemental licenses and those with more than four.
- Regulating authority: Florida Department of Highway Safety and Motor Vehicles
- Bond amount: $10,000 - $50,000, based on license classification
- Premium rate: Standard premiums range from 1% to 3% of the bond’s value, with credit, financial standing, and experience determining the final rate.
The Florida auto dealer bond covers multiple dealer license categories, including:
- Independent (used) motor vehicle dealer: Any person who buys, sells, leases, or deals in used motor vehicles and is not a franchise dealer.
- Franchised motor vehicle dealer: Any person that sells new vehicles under a franchise agreement, while also selling used vehicles.
- Recreational vehicle dealer: Any person who buys, sells, offers, or deals in new or used recreational vehicles.
- Mobile home dealer: any person involved in the purchase, sale, or trade of mobile homes, including those who advertise or exhibit them with the intent to sell.
How Much Does a Florida Auto Dealer Bond Cost?
Under Chapter 320 of the Florida Statutes, the bond amounts required for dealer licensing are as follows:
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| Independent (used) motor vehicle dealer | $25,000 | Starts at $250 |
| Franchised (new) motor vehicle dealer | $25,000 | Starts at $250 |
| Recreational vehicle dealer with no more than four additional licensed locations | $10,000 | Starts at $100 |
| Recreational vehicle dealer with more than four additional licensed locations | $20,000 | Starts at $200 |
| Mobile home dealer with no more than four additional licensed locations | $25,000 | Starts at $250 |
| Mobile home dealer with more than four additional licensed locations | $50,000 | Starts at $500 |
The rates listed above may vary. Your actual bond cost is determined by factors such as your credit score, financial stability, debt levels, asset position, and experience in the vehicle industry.
Applicants with strong credit, solid financials, low debt, and established dealership experience typically qualify for the most competitive rates, usually between 1% and 3% of the bond amount.
Dealers with fair credit, moderate assets, and manageable debt generally fall into the 3%–5% pricing range.
For applicants with challenged credit, limited assets, higher debt levels, or little experience, premiums can reach up to 10%.
If you fall into this category, Bryant Surety Bonds offers a Bad Credit Surety Bond Program, partnering with reputable sureties that provide flexible and affordable options tailored to higher-risk applicants.
No matter your financial background, you can use our Surety Bond Cost Calculator below to estimate your premium instantly - just enter your credit score, bond type, bond amount, and state to receive an estimate.
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How to Get a Florida Auto Dealer Bond
Getting bonded in Florida is quick, straightforward, and fully online. Most dealers complete the process in just a few simple steps:
- Submit a short online application: share basic details about your dealership, your contact information, and the bond amount required for your license type.
- Receive a customized quote: your quote will be sent to you fast, often the same day, and you’re free to review it with absolutely no obligation to move forward.
- Get your bond issued: once you accept the quote and complete payment, we’ll issue your official Florida auto dealer bond certificate, ready to include with your licensing paperwork.
Most applicants finish the entire process within a day. Bryant Surety Bonds (license # L106247 for Florida) is authorized to issue Florida dealer bonds and works with leading surety companies to secure fast approvals and the lowest rates available.
How to Get a Florida Auto Dealer License
Before you file your application, you must secure a sales tax number issued by the Florida Department of Revenue and an Employer Identification Number assigned by the Internal Revenue Service, both of which are entered on the form.
The application for your license must also include these documents under the Florida auto dealer license requirements:
- Surety bond: An irrevocable letter of credit may be submitted in place of a surety bond when applying for a mobile home or motor vehicle dealer license
- Fingerprint records for every dealership officer, obtained through a service recognized by the Florida Department of Law Enforcement
- Certificate showing completion of the Florida pre-licensing dealer training course (required for all dealer license types: 16 hours for independent, wholesale, auction, and salvage dealers; 8 hours for franchise dealers. Applicants who held a valid motor vehicle dealer license continuously within the past 2 years and remain in good standing are exempt from the pre-licensing requirement.
- Copy of lease agreement
- Garage liability insurance
- Evidence of registration confirming that your business and, if applicable, its trade name are listed with the Florida Division of Corporations
Your completed dealer application and all supporting documents must be filed with the appropriate FLHSMV regional office.
For more detailed information about your licensing requirements, check out our dedicated Florida Auto Dealer License Guide.
Florida Auto Dealer Bond Renewal
To renew your license, submit Form HSMV 86720 along with your garage liability insurance, current surety bond, and proof that your business and trade name are registered with the Florida Division of Corporations.
Independent dealers must also complete 8 hours of continuing education every 2 years. The 8-hour course must include at least 2 hours of legal or legislative issues, 1 hour of department issues, and 5 hours of relevant motor vehicle industry topics.
Renewal Deadlines & Fees
- Franchise dealers: Due Dec 31 - $75 yearly or $150 biennial
- Independent dealers: Due Apr 30 - $75 yearly or $150 biennial
- Mobile home & RV dealers: Due Sep 30 - $140 yearly or $280 biennial
Florida dealer bonds renew annually:
- Independent dealer bonds expire April 30
- Franchise dealer bonds expire on December 31
Maintaining an active bond is required for license renewal.
Important Update for Florida Car Dealerships
A 2025 amendment to the Florida Automobile Dealership Act, originally introduced as Florida Senate Bill 1820 and ultimately enacted as its identical House companion, CS/CS/HB 429 (Chapter 2025-38), took effect July 1, 2025. It strengthens protections for franchised motor vehicle dealers and prohibits licensed importers, distributors, manufacturers, and any affiliated entities from retaliating against a franchised dealer who invokes rights under the franchise law, alleges a violation, or participates in any investigation or hearing related to those rights. The law also sets new limits on how performance-measuring criteria may be enforced, and makes improper cancellations or modifications of franchise agreements subject to challenge.
FAQs
How long does it take to get a Florida auto dealer bond?
Usually, the same day. After you submit our online form and pay, the bond is issued within 24 hours and sent to you ready to file with your FLHSMV regional office, along with the rest of your application packet.
Does obtaining an auto dealer bond affect my credit score?
No. Underwriters run a soft credit check that doesn’t register on your report and is invisible to lenders. Your score won’t move whether you request one quote or compare several.
Can I get a Florida auto dealer bond if I have bad credit or past financial issues?
You can still get bonded. Our Bad Credit Surety Bond Program is built for higher-risk applicants—low credit scores, prior bankruptcies, tax liens, or limited dealer experience. Premium rates in this tier generally land between 5% and 10% of the bond amount, and we work with multiple specialty sureties to find you the most workable terms available.
Can a car dealer in Florida hold sales events outside the main business location?
A dealer may conduct off-premise sales if granted a supplemental license, which is valid for up to 10 consecutive days and issued without a fee.
What determines the cost of my Florida auto dealer bond?
Your premium is calculated as a percentage of the bond amount and is set during underwriting based on your personal credit score, dealership financials, debt levels, and industry experience. Applicants with strong credit and established dealer experience typically qualify for rates in the 1%–3% range, while those with credit challenges may see rates of 5%–10% under our specialty programs.
How long is a Florida auto dealer bond valid for?
Florida dealer bonds run concurrently with your license period. Independent, wholesale, auction, and salvage dealer bonds expire April 30; franchise dealer bonds expire December 31; and mobile home and recreational vehicle dealer bonds expire September 30. You’ll need to renew the bond ahead of each expiration date to keep your dealer license active.
Can I post something other than a surety bond?
Yes. Florida statute allows you to submit an irrevocable letter of credit from a Florida-authorized bank in place of a surety bond, in the same dollar amount required for your license type. Most dealers still go the surety bond route; however, it doesn’t tie up your line of credit or affect your borrowing capacity at the bank.
What happens if a customer files a claim against my bond?
If a customer suffers a loss from a contract violation or a breach of Chapter 319 or 320 of the Florida Statutes, they can file a claim against your bond. The surety investigates the claim, and if it’s deemed valid, pays the affected party up to the bond amount. You are then required to reimburse the surety in full. Total claim payouts in any one license year cannot exceed the bond’s penal sum.
