Florida Auto Dealer Bond

A Florida auto dealer bond costs as little as $250. 

While a Florida auto dealer bond needs to be $25,000, dealers only need to pay a small percentage (generally 1% - 10%) to secure this bond. This percentage is known as a bond rate or bond premium. The bond rate that a motor vehicle dealer qualifies for is heavily dependent on their personal credit. 

While credit score is the main factor for determining bond rate, other things a surety company may consider include:

• Industry Experience
• Past Bonding History
• Business Finances

Finally, the surety company you choose can also impact your rate—large and established surety companies generally offer the best bond prices. At JW Surety Bonds, we are able to provide the cheapest rates in the industry due to the large volume of bonds we underwrite.

See our guide How Much Does a Surety Bond Cost? for more information.

1. Apply For Your Surety Bond

Fill out an online bond application or call one of our bond experts at (888) 592-6631. All our bond quotes are free and no obligation

Information that you will need on hand includes:

• Surety Bond Name (Florida Auto Dealer Bond)
• Surety Bond Amount ($25,000)
• Contact Information
• Auto Dealer License Number (if available)

2. Get a Bond Quote

A soft credit check is run, and a bond quote is sent directly to the email you provided. 

For most applicants, this quote only takes a few minutes to arrive. Please check your junk mail.

• We recently had a woman named Jean who had shopped around a fair bit for her bond. She was pretty sure she found the company she would go with. However, she decided to fill out our online application since it was quick and easy. She was pleasantly surprised—our quote was $70 less than her previous lowest quote. In the end, we gained a happy client, and Jean saved $70!

3. Purchase Your Bond

Once you fill out the paperwork and pay your invoice, a copy of your bond is sent to your email. Please double-check that all information is correct. The original bond will be sent to you by mail.

All auto dealers operating in Florida need an auto dealer bond. This bond is a requirement to get a dealer license through The Florida Department of Highway Safety and Motor Vehicles (FLHSMV). 

An auto dealer bond helps ensure a dealership operates according to the state and federal rules regulating auto dealers. It is in place to reimburse customers for losses if an auto dealer conducts business unethically or unlawfully. This bond is sometimes also referred to as a Florida motor vehicle dealer bond. 

All auto dealer bonds are a contractual agreement between three parties. 

• Principal – the auto dealer that needs to get bonded.
• Obligee – the entity requiring the principal to get the bond (FLHSMV).
• Surety – the company that issues the bond and backs it financially (ex. JW Surety Bonds).

Florida auto dealer bonds are part of the licensing process detailed under Florida Statutes 320.27, 320.77, and 320.771.

Florida auto dealer bonds need to be renewed each year before reaching their expiration date. This date aligns with the expiration date of the Florida auto dealer license.

• Independent Auto Dealers: renew by April 30th. 
• Franchise Auto Dealers: renew by December 31st.

Your surety should send you an expiration notice at least 30 days before your bond’s expiry. You will need to submit your renewed bond with your license renewal application.

If a bond claim is filed in Florida, then an investigation will be initiated. This investigation is looking to see if the bond claim is valid. In addition, it confirms whether or not the surety bond covers the claim. 

If a claim is found to be valid, the surety company that issued the bond pays for the claim. However, the bond holder must then pay them back in full, plus any legal fees.

Auto dealers in Florida can avoid bond claims by following all rules and laws surrounding their profession. This includes, but isn’t limited to:

• Transferring vehicle titles when vehicles are sold
• Paying vehicle sellers quickly and in full
• Avoiding illegal selling practices and fraudulent activity
• Renewing their license and paying the related fees

Any Florida resident that buys, sells, leases, or deals three (3) or more motor vehicles in a 12-month period needs a license. To get a Florida auto dealer license, you must have the following:

• Dealer Training Course Certificate – this pre-licensing course must be done through a department-approved training school.
• Permanent Business Location – must not be a residence and have 100 square feet of interior floor space. You must also have proof of ownership or lease. 
• Business Registration Documents – including fictitious trade name registration (if applicable).
• Sales Tax Number – from the Florida Department of Revenue.
• Surety Bond – $25,000 auto dealer bond. 
• Criminal Background Check – done through fingerprinting.
• Proof of Liability Insurance – single-limit liability coverage and personal injury protection.