What’s new for Florida Auto Dealers in 2017?
Another year has passed and it is fast approaching renewal time for your Florida Auto Dealer License Bond. The state of Florida requires all motor vehicle dealers to obtain and maintain a surety bond as required by FL Statute – Title XXIII – Chapter 320, Section 27.
With changes in case law, many car dealers may find themselves unable to renew their bond as multiple surety companies have elected to no longer write this particular bond in the state of Florida. Dealers must provide proof of their surety bond renewal by no later than 4/30. Check with your agent to see if you may be affected by this change, if you find yourself dealing with an agent who cannot provide your renewal, A1SuretyBonds.com can provide the required Auto Dealer Bond with rates as low as $175 for qualifying accounts.
Who is required to obtain a Florida Motor Vehicle Dealer Bond?
The State of FL Department of Highway Safety and Motor Vehicles deems anyone who, in 12 consecutive months,
- sells 3 or more motor vehicles
- sells 1 or more mobile homes
- sells 1 or more recreational vehicles
to be a motor vehicle dealer and is required to be licensed in accordance with Section 320.771 of the FL statutes, as a Motor Vehicle Dealer. Failure to secure proper licensing can result in a Second Degree Misdemeanor which carries a fine of $500 and 6 months in jail and you can also be deemed in violation of Florida’s Deceptive and Unfair Trade Practices Act which can result in a civil penalty.
How do I become a Licensed and Bonded Motor Vehicle Dealer in Florida?
In order to become a licensed motor vehicle dealer, you must first apply with the state by completing the Application for a License as a Motor Vehicle, Mobile Home or Recreational Vehicle Dealer (form HSMV 86056). Once completed you will need to submit the application to your regional office along with the following:
- Florida Motor Vehicle Dealer Surety Bond (Form HSMV 86020)
- If you do not have your bond, apply for your Motor Vehicle Dealer Bond with A1SuretyBonds.com
- Garage Liability Insurance
- Proof of lot/property lease/ownership
- Approval of the dealership location
- Proof of Completed Dealer Training Seminar
- Required business documents & required fingerprints