Florida Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Florida Auto Dealer Bond Key Facts
Governed by Fla. Stat. § 320.27 (and Rule 15C-7, Florida Administrative Code).
The basics
What Is an Auto Dealer Bond in Florida?
Yes — Florida requires a $25,000 motor vehicle dealer surety bond before it will issue your dealer license. A dealer bond is a promise, backed by a surety company, that you will follow Florida’s dealer laws and honor your sales contracts. If you break those rules, a customer or the state can file a claim against the bond. Florida calls it the Motor Vehicle Dealer Surety Bond (form HSMV 86020) under section 320.27, Florida Statutes.
Good to know - Florida requires a $25,000 surety bond (or an irrevocable letter of credit) before it issues any motor vehicle dealer license under section 320.27. The same $25,000 applies to independent/used (VI), franchise/new (VF), wholesale (VW), auction (VA), and salvage (SD) dealers. Mobile home and recreational vehicle dealers are licensed under separate statutes with different bond amounts.
You need a Florida dealer license if you buy, sell, offer, display, or deal in three or more motor vehicles in any 12-month period. The $25,000 bond is part of that license, not a separate permit.
The bond protects your customers and the state, not you. It covers losses if you violate Florida dealer law or fail to honor a sales contract. If a valid claim is paid, you must pay the surety back.
Florida lets you post an irrevocable letter of credit for $25,000 instead of a surety bond, but most dealers choose the bond because it costs far less up front than tying up $25,000 in credit.
The same $25,000 amount applies to every motor vehicle dealer type — independent (used), franchise (new), wholesale, auction, and salvage. Mobile home and recreational vehicle dealers are licensed under different Florida statutes with different bond amounts.
Qualification
What You Need to Qualify for a Florida Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You buy, sell, offer, display, or deal in three or more motor vehicles in any 12-month period, so Florida law requires a dealer license.
- You have chosen your license type: independent/used (VI), franchise/new (VF), wholesale (VW), auction (VA), or salvage (SD).
- You have a permanent business location that meets FLHSMV requirements (not a tent or temporary stand) with room to display and store vehicles and keep your records.
- Every owner and officer can pass a state and federal background check by electronic fingerprints through an FDLE-approved provider.
- You hold garage liability insurance with at least $25,000 combined single-limit coverage (bodily injury and property damage) plus $10,000 personal injury protection (salvage dealers are exempt).
- New applicants have completed an FLHSMV-approved prelicensing dealer training course.
- You are ready to provide the $25,000 dealer surety bond, which we issue and file for you.
Step by step
How to Get an Auto Dealer Bond in Florida: Step by Step
Confirm you need a license and pick your type
You need a Florida dealer license if you handle three or more motor vehicles in any 12-month period. Choose your license type: independent/used (VI), franchise/new (VF), wholesale (VW), auction (VA), or salvage (SD). Your type sets your training and insurance requirements.
Complete the prelicensing dealer training course
New applicants must finish an FLHSMV-approved prelicensing dealer training course. The course covers Florida dealer law, titling, and recordkeeping. Keep your certificate of completion to submit with your application.
Get electronic fingerprints for every owner and officer
Each owner and officer of the dealership must be electronically fingerprinted for a state and federal background check through a Florida Department of Law Enforcement (FDLE) approved service provider.
Set up a compliant location and garage liability insurance
Secure a permanent business location that meets FLHSMV requirements with room to display and store vehicles and keep your records. Buy garage liability insurance with at least $25,000 combined single-limit coverage (bodily injury and property damage) plus $10,000 personal injury protection. Salvage (SD) dealers are exempt from this insurance.
Completion Guidelines for Dealer License Applicants (garage liability insurance) (HSMV 86072)Buy your $25,000 dealer surety bond
Purchase your $25,000 Florida Motor Vehicle Dealer Surety Bond through Market Canopy. We issue the bond on the official state form (HSMV 86020) and file it with FLHSMV for you — there is nothing on the bond form for you to download, complete, or sign. Start your quote above to see your premium.
Submit your dealer license application and fees
Complete the Application for License as a Motor Vehicle Dealer (HSMV 86056) and submit it with your training certificate, fingerprint results, insurance certificate, bond, and fees to the FLHSMV Bureau of Dealer Services or your regional office.
Application for License as a Motor Vehicle, Mobile Home or Recreational Vehicle Dealer (HSMV 86056)Paperwork
Florida Dealer Bond Forms & Documents
The main dealer license application you complete and submit to FLHSMV.
View formThe official $25,000 bond form. We issue and file this for you — you do not complete it.
View formOfficial $25,000 alternative to the surety bond; most dealers choose the bond instead.
View formOfficial guidance for the required garage liability insurance certificate.
View formYou'll also need
Cost
How Florida Auto Dealer Bond Pricing Works
You do not pay the full $25,000. The bond amount is the maximum the surety could have to pay on a valid claim; you pay a premium, which is a small percentage of that $25,000.
Your premium depends on underwriting factors such as your credit and dealer experience. Start your quote above for an exact price — we never quote a binding premium sight unseen.
The state license fees ($300 per main location, $50 per supplemental location) and your garage liability insurance are separate costs from the bond premium.
Worked example
Florida sets the dealer bond at a fixed $25,000 for every motor vehicle dealer type. You pay only the premium on that $25,000 bond, not the full $25,000. Well-qualified dealers typically pay a small percentage of the bond amount each year.
Filing
Filing Information
Florida Department of Highway Safety and Motor Vehicles (FLHSMV) — Bureau of Dealer Services
Filing notes
Market Canopy issues your $25,000 Florida Motor Vehicle Dealer Surety Bond on the official form (HSMV 86020). We send you the executed bond and, where the state accepts it, file it with FLHSMV as part of your application package — you do not fill out or sign the bond form yourself.
Florida law ties the bond to your license period: a new bond or a continuation certificate must be on file at the start of each license period (Fla. Stat. § 320.27(10)). Keep your coverage continuous and renew before your license expires so there is no lapse.
File the bond together with your completed Application for License as a Motor Vehicle Dealer (HSMV 86056) and the state fees at the FLHSMV Bureau of Dealer Services or your regional office.
FAQ
Florida Auto Dealer Bond FAQ
Yes. Under section 320.27, Florida Statutes, every motor vehicle dealer applicant must file a $25,000 surety bond (or an irrevocable letter of credit) before FLHSMV issues a license.
The bond amount is a fixed $25,000 for every dealer type — independent, franchise, wholesale, auction, and salvage. You pay a premium, which is a percentage of that $25,000, not the full amount. Start your quote above for your price.
Anyone who buys, sells, offers, displays, or deals in three or more motor vehicles in any 12-month period needs a Florida dealer license, and the $25,000 bond is part of that license.
No. Market Canopy issues the bond on the official HSMV 86020 form and files it with FLHSMV for you. You complete the dealer license application (HSMV 86056), but not the bond form itself.
Yes. Florida lets you post a $25,000 irrevocable letter of credit (form HSMV 86057) instead of a surety bond. Most dealers choose the bond because it costs much less up front than tying up $25,000 of credit.
Florida ties the bond to your license period. A new bond or a continuation certificate must be on file at the start of each license period, so you keep the coverage continuous and renew it before your license expires.
Besides the bond, new applicants complete an FLHSMV-approved prelicensing training course, electronic fingerprints for every owner and officer, garage liability insurance, a compliant business location, and the HSMV 86056 application with fees.
File with the FLHSMV Bureau of Dealer Services in Tallahassee or your regional motorist services office. We file your issued bond with your application package where the state accepts it.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with Florida Department of Highway Safety and Motor Vehicles (FLHSMV) — Bureau of Dealer Services before you file. This page is informational and not legal advice.
FAQ
Florida Auto Dealer Bond Questions
The cost of a Florida auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Florida auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Florida license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
