How Do I Get A Car Dealer License In Florida

If you’re asking “how do i get a car dealer license in florida,” you’re starting a process that requires careful planning. The path to a Florida auto dealer license includes completing approved training, securing a surety bond, and passing a background check. This guide provides a clear, step-by-step roadmap to help you navigate the requirements set by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV).

Getting your license is a multi-step process managed by the FLHSMV Division of Motorist Services. You cannot skip any steps, and each builds upon the last. The main stages involve education, location approval, documentation gathering, and finally, submitting your application. Understanding this sequence from the start will save you significant time and frustration.

Understanding The Different License Types

Before you begin, you must decide what type of vehicles you plan to sell. Florida offers several dealer license types, and applying for the wrong one will cause delays.

Independent Motor Vehicle Dealer: The most common license for selling used cars, trucks, and vans.
Franchise Motor Vehicle Dealer: For selling new vehicles under a manufacturer’s franchise agreement.
Wholesale Motor Vehicle Dealer: For selling vehicles only to other licensed dealers, not to the retail public.
Mobile Home Dealer: For selling mobile homes.
Recreational Vehicle Dealer: For selling RVs and campers.
Motorcycle Dealer: For selling motorcycles and scooters.

This article primarily focuses on the requirements for an Independent Motor Vehicle Dealer license, which covers most used car dealerships.

Step 1: Complete The Required Pre-Licensing Education

Florida law mandates that all dealer license applicants complete an approved pre-licensing course. This is your first official step.

Choosing An Approved Provider

You must take the course from a provider approved by the FLHSMV. The course covers Florida’s motor vehicle laws, titling and registration procedures, dealer responsibilities, and ethical business practices. It typically involves 16 hours of instruction, which can often be taken in-person or online.

Upon successful completion, you will recieve a certificate of completion. You must include a copy of this certificate with your license application. Do not lose this document.

Step 2: Secure A Legitimate Business Location

Your dealership must have a permanent, brick-and-mortar location that meets specific zoning and signage requirements. A home office or P.O. box is not acceptable.

The location must be zoned for automotive sales.
You must have a signed lease or proof of ownership for the property.
The office must have a working telephone listed in the business name.
You must display a permanent, professional business sign with letters at least 6 inches tall.

You will need to submit color photographs of your business location, including the exterior, office interior, and the sign, with your application. An FLHSMV representative may also conduct a physical inspection.

Step 3: Obtain Your Florida Dealer Surety Bond

A surety bond is a critical financial guarantee required for your license. It protects the state and consumers from fraudulent or unethical business practices.

Bond Amounts And Requirements

For an Independent Motor Vehicle Dealer license, the required bond amount is $25,000. Wholesale dealers require a $50,000 bond. You obtain this bond from a licensed surety bond company. You will pay an annual premium, which is a percentage of the total bond amount based on your personal credit score.

The bond must be issued on the specific form provided by the FLHSMV (Form HSMV 86056). The original, signed bond must be submitted with your application. Remember, the bond is a continuous obligation; it must remain active and in force for as long as you hold your license.

Step 4: Pass The Background Check And Fingerprinting

All applicants and certain associated personnel must undergo a criminal and financial background check.

Schedule fingerprinting through an approved Livescan service provider.
The fingerprints are submitted to the Florida Department of Law Enforcement (FDLE) and the FBI.
The FLHSMV reviews the results for any disqualifying offenses, such as felonies involving fraud, theft, or odometer tampering.

It’s wise to address any potential issues on your record before applying. Significant financial delinquencies, like unpaid child support or taxes, can also lead to denial.

Step 5: Gather Your Required Documentation

This step involves collecting all the necessary paperwork. Having everything organized before you submit is crucial.

Completed Application for Motor Vehicle Dealer License (Form HSMV 86020): Ensure every section is filled out accurately.
Pre-Licensing Education Certificate: The original or a clear copy from your approved course.
Proof of Business Location: Lease agreement or deed, along with color photographs.
Original Surety Bond (Form HSMV 86056): Signed by you and the surety company.
Proof of Garage Liability Insurance: A minimum of $25,000 coverage for your business location.
Sales Tax Certificate of Registration: From the Florida Department of Revenue (Form DR-1).
Fictitious Name Registration: If operating under a trade name (DBA), file with the Florida Division of Corporations.
Federal Employer Identification Number (EIN): From the IRS, unless you are a sole proprietor using your SSN.
Fingerprint Receipt and Background Check Authorization.
Application Fees: A check or money order for the required amount, which changes periodically.

Step 6: Submit Your Application To The FLHSMV

Once your packet is complete, mail it to the address specified by the FLHSMV. It is highly recommended to use a trackable mail service. The department will review your submission, which can take several weeks. If anything is missing or incorrect, they will send a deficiency letter, pausing the process until you provide the needed information.

After approval, you will recieve your official Florida Motor Vehicle Dealer License and your dealer license plate order form. You can then order your dealer plates, which allow you to legally move and demonstrate vehicles.

Maintaining Your Florida Dealer License

Getting your license is just the beginning. You must comply with ongoing requirements to keep it in good standing.

Renewal And Continuing Education

Your dealer license expires annually. You will recieve a renewal notice, but it is your responsibility to renew on time. Renewal requires paying a fee and completing 4 hours of approved continuing education each year. Failure to renew on time results in late fees and potential license suspension.

Record Keeping And Audits

Florida law requires you to maintain detailed records for every transaction, including the Buyer’s Order, title paperwork, and odometer statements. You must keep these records for at least three years. The FLHSMV or the Department of Revenue may conduct random audits to ensure compliance.

Common Mistakes To Avoid

Many applicants face delays or denials due to avoidable errors.

Insufficient Business Location: The most common pitfall. Ensure your sign and zoning are perfect.
Incomplete Application Packet: Double-check that every required document is included and correctly filled out.
Letting Your Bond Lapse: Your surety bond must be active at all times; non-payment of the premium will cause license revocation.
Ignoring Sales Tax Obligations: You must collect, report, and remit sales tax to the Florida Department of Revenue on schedule.

Frequently Asked Questions

How Much Does A Florida Car Dealer License Cost?

The total cost varies. You must budget for the pre-licensing course ($200-$400), the surety bond premium ($500-$2,500 per year depending on credit), the application fee (around $300), fingerprinting fees ($50-$100), and other costs like insurance and signage. Initial startup costs often range from $2,000 to $5,000.

How Long Does It Take To Get A Dealer License In Florida?

From start to finish, the process typically takes 60 to 90 days. This timeframe depends on how quickly you complete the course, secure a location, and gather documents, as well as the FLHSMV’s processing speed. Incomplete applications can extend this timeline significantly.

Can I Get A Florida Dealer License With Bad Credit?

Yes, but it may be more difficult and expensive. Bad credit can affect your ability to get a surety bond, as it leads to higher premium rates. Some surety companies specialize in bonds for applicants with poor credit, so you can still obtain one.

What Is The Difference Between A Retail And Wholesale Dealer License?

A retail license (Independent Motor Vehicle Dealer) allows you to sell to the general public. A wholesale license only permits sales to other licensed dealers, auto auctions, and institutions like rental car companies. Wholesale dealers cannot sell directly to consumers.

Do I Need A Dealer License To Sell Fewer Than 3 Cars A Year?

Florida law requires a license if you are “engaged in the business” of selling vehicles. While there is a common misconception about a “3-car limit,” if your primary intent is to buy and sell for profit, you need a license regardless of volume. Occasional private sales of personally owned vehicles are allowed.