Florida Motor Vehicle Dealer Surety Bonds

If you want to become a Florida motor vehicle dealer, you will need to get a Florida motor vehicle dealer bond, which helps promote highway safety and motor vehicle safety. This bond does not have to be confusing or overwhelming, as ACS is here to assist you. 

Florida Motor Vehicle Dealer Surety Bond

To get a dealer bond in the state of Florida, Florida statutes indicate that the following is required. You must: 

• Be a United States citizen
• Have no open tax liens
• Have no past due child support
• Have no open judgements
• Have no large past dues on your credit report

The surety bond is an agreement between three parties. In this case, you are the principal, the state department is the obligee, and the third party is the surety.  The motor vehicle dealer bonds in Florida is a compliance under Florida statutes. It outlines regulations and rules that you must follow to maintain your motor vehicle dealer license. The bond guarantees your compliance with state and federal laws. If you are not compliant, the obligee will make a claim and the surety will pay it.  As the principal, you are the indemnitor and you must repay the surety business for any claims made. Paying out a bond claim may cause your bonds to be cancelled, which could make you lose your motor vehicle dealer license. 

Types of Florida Vehicle Dealer Bonds

There are five types of auto dealer bonds in Florida required, including franchised motor vehicles dealers, wholesale motor vehicles dealers, independent motor vehicles dealers, motor vehicles auctions, and salvage motor vehicles dealers. All of these must have a dealer license. 

Florida Auto Dealer Bond Obligee Details

The state is the obligee in this type of bond in the state of Florida. Specifically, the Florida Department of Highway Safety plays a key role, as this is a matter of highway safety and motor safety. 

What Does a Florida Dealer Bond Cost?

The surety businesses will look at your personal credit score as the owner of the dealership to determine your rate during the application process. You will have a lower premium if your score is better. This will not affect your score as it is a soft pull.  Keep in mind that once bonded, the surety will review your score again during each renewal period. The average bond cost ranges from $188 to $2,250 each year for a bond amount of $25,000. 

Bad Credit Program

Expect to pay more for an auto dealer surety bond if you have bad credit ratings. These rates will likely be in the higher end of the above range, but still vary based on your business and rights reserved. Read more about how to get a surety bond with bad credit.

Florida Auto Dealer Bond Terms and Expiration Dates

You need a motor vehicle dealership bond to maintain your motor vehicle dealer license in the state of Florida, and the bond is typically renewed each year so you remain licensed. 

What Is an Auto Dealer Surety Bond?

An auto dealer surety bond ensures that members of the public will receive compensation if any damages occur due to the dealership not complying with licensing laws, such as not providing a valid title.  All used and new car dealerships in Florida required this type of bond to activate their license to sell automobiles, motorcycles, and/or RVs. You need this type of surety bond in Florida to get licensed to sell new or used motor vehicles. 

How Do I Start a Car Dealership in Florida?

In addition to the other aspects of setting up a business, such as finding a location and buying vehicles to sell, you will need to get your motor vehicle dealer bond in order to activate your motor vehicle dealer license. 

Get Your Florida Auto Dealer Bond Today

With more than 125 years of combined experience and access to 25 surety companies, ACS can help you take the first steps towards getting your motor vehicle dealer surety bonds application today, so you are on track to getting your dealer license from the appropriate department.