The Florida Dealer Bond GuideFLHSMV §320.27, Decoded
Florida requires every licensed motor vehicle dealer — franchise (VF), independent (VI), wholesale (VW), auction (VA), and salvage (SD) — to file a $25,000 surety bond on Form HSMV 86020 under Fla. Stat. §320.27. Mobile home dealers post $25,000 to $50,000 on Form HSMV 86018 under §320.77; recreational vehicle dealers post $10,000 to $20,000 on Form HSMV 86019 under §320.771. The bond runs continuously and is regulated by FLHSMV.
If you already know the class you need and just want a quote, go to the Florida motor vehicle dealer bond page. If you want to understand the full licensing system — every class, every form, every renewal date — keep reading.
What a Florida Dealer Bond Actually Is
A Florida dealer bond is a three-party financial guarantee, not an insurance policy. It promises the public and the state that if the dealer violates Chapter 320 — for example, by withholding a title, misrepresenting odometer readings, or failing to remit sales tax — money will be available to make injured parties whole. The dealer pays a premium each year for this guarantee; the surety pays valid claims on the dealer's behalf; the dealer then reimburses the surety under the indemnity agreement signed at bond issuance. The mechanics here have been verified by our NV-licensed producer Eric Drummond against the current FLHSMV bulletin set.
The three parties are: the Principal (the licensed dealer), the Surety (the carrier issuing the bond), and the Obligee (the State of Florida acting through FLHSMV, on behalf of the public). Claims flow from a damaged consumer through FLHSMV or directly to the surety. The surety investigates and pays valid claims up to the bond amount. The dealer remains on the hook to repay the surety.
It is a common misconception that the bond is insurance for the dealer. It is not. Surety bonds protect the obligee and the public, not the principal. Florida garage liability insurance, by contrast, is real insurance and exists alongside — but separate from — the bond.
Florida Dealer Bond at a Glance
- Governing Statute
- Fla. Stat. §320.27, §320.77, §320.771
- Regulator
- Florida Dept. of Highway Safety and Motor Vehicles (FLHSMV)
- Bond Form (MV)
- HSMV 86020
- Application Form
- HSMV 86056 (separate from bond)
- MV Bond Amount
- $25,000 (VF/VI/VW/VA/SD)
- License Term
- 1 year (MV); 1 or 2 years (MH/RV)
- Initial License Fee
- $300
Bond Amount by License Class
Florida's dealer system is broader than most states realize. The motor vehicle classes share a $25,000 bond under the §320.27 statutory framework, but recreational and mobile home dealers run on entirely different bond schedules under separate statutes. Mismatching the class and the form is the most common avoidable error in new applications, especially among out-of-state dealers expanding into the Caribbean export market in Fort Lauderdale.
| Class | What It Permits | Bond | Form | Statute | Notes |
|---|---|---|---|---|---|
| VF — Franchise Motor Vehicle | Sale of new motor vehicles under a manufacturer franchise agreement | $25,000 | HSMV 86020 | §320.27(1)(c)1 | Franchise authorization letter from the manufacturer required. Used vehicle sales permitted alongside new. |
| VI — Independent Motor Vehicle | Retail sale of used motor vehicles to the public | $25,000 | HSMV 86020 | §320.27(1)(c)2 | Most common Florida classification. 8-hour pre-licensing + 8 hours CE every 2 years required. |
| VW — Wholesale Motor Vehicle | Wholesale dealer-to-dealer transactions only; no retail sales | $25,000 | HSMV 86020 | §320.27(1)(c)3 | Cannot sell to retail buyers. Same bond and facility rules as VI in most respects. |
| VA / EH — Motor Vehicle Auction | Operating a licensed motor vehicle auction between dealers or for the public | $25,000 | HSMV 86020 | §320.27(1)(c)4 | Subject to additional auction-specific rules. Garage liability still required. |
| SD — Salvage Motor Vehicle | Sale of salvage motor vehicles, parts, and damaged units | $25,000 | HSMV 86020 | §320.27(1)(c)5 | Only MV class statutorily exempted from garage liability insurance. All other rules still apply. |
| RV — Recreational Vehicle (≤4 supplemental) | Sale of recreational vehicles from main location plus up to 4 supplemental sites | $10,000 | HSMV 86019 | §320.771 | Bond amount scales with supplemental locations. |
| RV — Recreational Vehicle (>4 supplemental) | Sale of recreational vehicles from main location plus 5 or more supplemental sites | $20,000 | HSMV 86019 | §320.771 | Doubles to $20K once the supplemental count exceeds four. |
| MH — Mobile Home Dealer (≤4 supplemental) | Sale of mobile homes from main location plus up to 4 supplemental sites | $25,000 | HSMV 86018 | §320.77 | 1- or 2-year license term available. Bond scales above 4 supplementals. |
| MH — Mobile Home Dealer (>4 supplemental) | Sale of mobile homes from main location plus 5 or more supplemental sites | $50,000 | HSMV 86018 | §320.77 | Doubled bond reflects expanded exposure across multiple display points. |
Fla. Stat. §320.27, Section by Section
Section 320.27 of the Florida Statutes is the controlling provision for motor vehicle dealer licensing. See the Fla. Stat. §320.27(5) bond requirement for a deeper subsection-by-subsection annotation. Here is each subsection in plain English — what it requires, why it matters, and where it intersects with the bond.
Definitions and the five MV classifications
Establishes the franchise (VF), independent (VI), wholesale (VW), auction (VA), and salvage (SD) categories. Sets the baseline $25,000 surety bond requirement for each class and identifies FLHSMV as the licensing authority.
Application contents
Specifies what the application (Form HSMV 86056) must contain: applicant identity, ownership disclosures, business location, hours, fingerprints for criminal background, and proof of supporting credentials.
Garage liability insurance
Requires VI, VF, VW, and VA licensees to maintain garage liability insurance with at least $25,000 combined single limit and $10,000 in personal injury protection. SD licensees are exempted by statute.
Pre-licensing education and continuing education
Mandates an 8-hour FLHSMV-approved pre-licensing course before VF, VI, VW, VA, or SD licensure. Independent (VI) dealers also complete 8 hours of continuing education every 2 years — 1 hour FLHSMV update, 2 hours legal, 5 hours industry.
License period, fees, and renewal
Sets the $300 initial license fee, the $75 MV renewal fee, the December 31 (VF) and April 30 (VI/VW/VA/SD) expiration dates, and the rules around late renewal (under $100 fee for under-45 days; new application required after 45 days).
Supplemental locations
Permits a dealer to operate additional locations under the same license at a $50 supplemental fee per site. Each supplemental still requires its own facility compliance — sign, hours, phone.
Records retention
Requires dealers to keep complete records of every vehicle purchased, sold, traded, or transferred — including odometer disclosures, title chain, and buyer information — for at least 5 years. Records must be available at the licensed location for inspection.
Suspension and revocation
Identifies grounds for suspension or revocation: fraud, title delays, odometer misrepresentation, false advertising, failure to maintain bond or insurance, and criminal conviction related to dealer activity.
Surety bond requirement and consumer remedies
Identifies the surety bond as the financial guarantee for consumer claims arising from violations of the chapter. Establishes who may sue on the bond — consumers, the state, and any party damaged by the licensee's conduct.
Civil penalties
Authorizes FLHSMV to impose administrative fines for violations in addition to suspension, revocation, or denial of license. Fines apply per-violation and accumulate quickly for repeat offenders.
Official Florida Requirements
"Each application shall be accompanied by a surety bond in the amount of $25,000 with a surety company authorized to do business in this state. The bond shall be conditioned upon the applicant\'s compliance with this chapter."Florida Department of Highway Safety and Motor Vehicles (FLHSMV) • Fla. Stat. §320.27(1)(c)
Form HSMV 86020, Field by Field
HSMV 86020 is the motor vehicle dealer surety bond — the document filed with FLHSMV to evidence the financial guarantee. Our Form HSMV 86020 line-by-line walkthrough covers the principal name pitfalls in detail. It is short, but every field has to be exact. Bonds rejected at filing almost always trace to one of these fields being wrong.
Bond Number
Assigned by the surety. Must match the number on the dealer's file with FLHSMV. Replacement bonds must reference the original number being replaced.
Principal (Dealer) Name and Address
Exact legal entity name as it appears on the HSMV 86056 application — LLC, corporation, sole proprietor, or partnership. Address must be the licensed dealership location, not a mailing address.
Surety Company Name and NAIC ID
Full legal name of the surety carrier and its NAIC identifier. Surety must be authorized to write surety in Florida.
Obligee
Pre-printed as the State of Florida, Department of Highway Safety and Motor Vehicles. Do not modify.
Bond Amount
$25,000 for VF, VI, VW, VA, and SD. The amount is fixed by §320.27(1)(c) and cannot be varied downward.
Effective Date
The day the bond goes on risk. For new applicants, this is typically the day the bond is executed; for renewals, it picks up where the prior term ended.
Expiration / Continuous Until Cancelled
Form HSMV 86020 is written as a continuous bond — it remains in force until the surety cancels in writing or the bond is replaced. Cancellation requires 60-day notice to FLHSMV.
Signatures and Attorney-in-Fact
Principal and surety attorney-in-fact must sign. Power-of-attorney from the surety must be attached or referenced.
Surety Seal
The carrier's embossed or printed corporate seal. FLHSMV will reject unsealed bonds.
Who Can Sue on a Florida Dealer Bond
Section 320.27(9) and the statutory bond language make the bond enforceable by a broad class of parties. The bond is not limited to FLHSMV-initiated claims — any party damaged by the dealer's violation of Chapter 320 can pursue payment from the bond, up to the $25,000 face amount in aggregate per term.
The most common claimants are consumers who experience title delays beyond the 30-day statutory window, undisclosed liens, odometer discrepancies, or non-delivery after deposits. Behind consumers, the most active claimants are financial institutions dealing with payoff failures and the Florida Department of Revenue on uncollected sales tax. Other dealers can also bring claims when wholesale transactions fail.
Critically, the $25,000 is an aggregate, not a per-claim limit. Once paid out across multiple claims in a single bond term, the remaining capacity drops accordingly. A dealer who incurs claims totaling $25,000 has effectively used the bond's entire capacity for that term, and the surety will require reinstatement before further licensure.
Common Claimants
- Retail consumers (title, odometer, deposit issues)
- Lienholders (payoff failures)
- Florida Department of Revenue (sales tax)
- Other dealers (wholesale disputes)
- FLHSMV (on behalf of state or public)
Pre-Licensing Education and Continuing Education
8-Hour Pre-Licensing Course
Under §320.27(4)(b), every applicant for a VF, VI, VW, VA, or SD license must complete an 8-hour pre-licensing course from an FLHSMV-approved provider before applying. The course covers Chapter 320, title and tag procedures, advertising rules, recordkeeping, and consumer protection.
The certificate is uploaded with Form HSMV 86056. Provider quality varies; verify that any provider you pay is on the active FLHSMV approved list at the time of enrollment.
Continuing Education for VI Dealers
Independent (VI) dealers complete 8 hours of continuing education every 2 years to renew. The 8 hours break down as:
- 1 hour FLHSMV update / regulatory changes
- 2 hours legal compliance
- 5 hours industry / business operations
Garage Liability Insurance Under §320.27(3)
Florida requires VF, VI, VW, and VA dealers to maintain garage liability insurance with at least $25,000 combined single limit plus $10,000 personal injury protection. This is real liability insurance protecting the public from negligence in the dealer's operations — not a surety bond and not the same thing as the $25,000 surety bond on Form HSMV 86020.
The certificate of insurance must name FLHSMV as certificate holder and be on file at all times. Lapse triggers immediate license suspension. Many dealers carry higher limits voluntarily because the $25K CSL floor is low by industry standards — the statute sets the minimum, not a recommended limit.
Salvage (SD) dealers are statutorily exempt from garage liability. §320.27(3) only enumerates VI, VF, VW, and VA. This is one of the most-mistaken facts in third-party guidance online; SD dealers post the same $25,000 surety bond but skip the garage liability requirement entirely. They still must post the bond and comply with every other rule.
Full garage liability requirementsGarage Liability Required?
- VF — FranchiseYes
- VI — IndependentYes
- VW — WholesaleYes
- VA — AuctionYes
- SD — SalvageExempt
Facility Requirements
FLHSMV inspects every new dealer location before issuing the license and may re-inspect on renewal or in response to complaints. The facility checklist is concrete and unforgiving — failures here are the single most common cause of application delays.
Permanent, non-residential location
No portable buildings, no homes, no shared-suite arrangements that lack a dedicated dealer footprint.
Equipped office
Dedicated office space, business records on site, fixed business telephone listed under the licensed dealer name.
Vehicle display area
Defined area for inventory display, clearly separable from neighboring businesses or residential use.
Permanent sign
Identifying the dealer by exact licensed name, visible from a public road. Vinyl banners and temporary signage are routinely rejected.
Posted business hours
Hours visible to the public at the entrance. Dealer must be open during those hours or post closure notices.
Listed phone number
A working telephone listed in the dealer's licensed name, capable of receiving consumer inquiries during posted hours.
Renewal Timeline by Class
Florida runs three different expiration calendars depending on dealer class. The April 30 renewal deadline mechanics are the most-missed by independent dealers. Mis-aligning your bond renewal with the wrong calendar is a common cause of lapse and reapplication, particularly for dealers running JAXPORT military vehicle redistribution with high inventory turnover.
VF — Franchise
December 31
Annual term. Renewal fee $75. Begin renewal 30 days prior to avoid late surcharge.
VI / VW / VA / SD
April 30
Annual term. Renewal fee $75. Independent dealers also file CE certificate at renewal.
MH / RV
October 1
1- or 2-year term. Renewal fee $100 (1-yr) / $200 (2-yr). Renewal form HSMV 86720.
The 45-day cliff
Florida charges a $100 late fee for renewals filed within 45 days after expiration. After 45 days, renewal is no longer possible — the dealer must submit a new application as a first-time applicant: new fingerprints, new background check, and re-completion of any prerequisites. This 45-day cliff is the single biggest reason Florida dealers lose continuous licensure.
Full renewal guideWhy Florida Dealer Applications Get Denied
Most denials are correctable defects, not permanent disqualifications. Knowing the six most common causes in advance lets you avoid the back-and-forth with FLHSMV review.
Form HSMV 86020 errors
Wrong bond amount, missing surety seal, principal name does not match the HSMV 86056 application, or wrong obligee language. Fix: have the surety reissue with the exact entity name shown on the application and the State of Florida DHSMV as obligee.
Garage liability not in force
VI, VF, VW, and VA applicants whose insurance certificate is missing, lapsed, or shows the wrong limits. Fix: bind $25K CSL + $10K PIP minimum and submit the certificate showing FLHSMV as certificate holder. SD applicants are exempt under §320.27(3).
Education course not completed
No certificate from an FLHSMV-approved 8-hour pre-licensing provider, or certificate from a provider not on the approved list. Fix: confirm the course is on the FLHSMV approved-provider list before paying for it.
Facility fails inspection
Residential location, no permanent sign, no posted hours, missing listed phone, no defined display area, or shared office space. Fix: cure the deficiency and request re-inspection — the application does not have to be refiled.
Background check disclosures
Undisclosed criminal history surfaces during the fingerprint background check. Fix: disclose proactively on Form HSMV 86056. FLHSMV reviews case-by-case and many applicants are approved with disclosure.
Sales tax registration mismatch
Department of Revenue sales tax certificate registered to a different entity than the dealer applicant. Fix: confirm the registration is tied to the exact applicant entity before submitting.
Cost Breakdown by Credit Tier
The $25,000 face amount is the maximum exposure, not the price. Annual premium is a percentage of the face amount, driven almost entirely by the personal credit of the owner(s) — pulled from Eric Drummond's underwriting notes across Florida submissions. Below is the typical range we quote across Florida.
| Credit Tier | Annual Premium ($25K bond) | Notes |
|---|---|---|
| 700+ FICO | $250 – $500 / year | Best-rate market. Same-day issuance, no financial review. |
| 650 – 699 | $500 – $1,000 / year | Standard tier. Most applicants land here. |
| 600 – 649 | $1,000 – $1,750 / year | Substandard. Some carriers request financials. |
| Below 600 | $1,750 – $3,750 / year | Bad-credit / high-risk markets. Indemnity may be tightened. |
Multi-year prepayment discount
Most carriers offer a per-year discount when premium is paid 2 or 3 years upfront. For dealers confident in renewal, this often beats annual pay-as-you-go by 10–20% in total premium. We can quote both options at the same time.
Full cost breakdownThe Bond Claim Process
Florida bond claims flow through a predictable sequence. Understanding the process matters because a claim — even one ultimately denied — affects the dealer's underwriting profile and future premium.
Claim filed
Consumer, FLHSMV, lender, or other party files a written claim with the surety identifying the dealer, the bond number, and the alleged violation of Chapter 320. Claims may also be filed through FLHSMV, which forwards them to the surety.
Notice to principal
The surety sends written notice of the claim to the dealer with a request for a response. The dealer typically has 10 to 30 days to respond with documentation supporting its position.
Investigation
The surety's claims adjuster reviews the documentation from both sides — title records, sales contracts, deposit receipts, FLHSMV inquiries — and determines whether the claim is valid under the bond language and Chapter 320.
Payment or denial
Valid claims are paid up to the remaining bond capacity. Invalid claims are denied in writing with reasons. Disputed claims that resist informal resolution proceed to litigation; the surety defends and pays under the bond if liability is ultimately established.
Indemnification
Whatever the surety pays, the dealer must reimburse under the indemnity agreement signed at bond issuance. The surety may pursue the dealer in court for repayment plus costs.
Aggregate impact
Each paid claim reduces the bond's remaining capacity for that term. A dealer with $10,000 in paid claims has only $15,000 in remaining capacity until the bond is reinstated.
Reinstatement After a Claim
When the surety has paid a claim, the bond's capacity for that term is reduced. To restore full capacity, the dealer must reinstate the bond — which the surety typically conditions on three things: full repayment of what the surety paid out, additional collateral or premium loading reflecting the new risk profile, and updated indemnity from all owners.
For dealers with strong financials, reinstatement may be quick. For dealers with weaker credit or multiple claims, the surety may decline to reinstate at all, forcing the dealer to seek a replacement bond from a different carrier — often at substantially higher premium and tightened indemnity terms.
The single biggest factor in keeping reinstatement options open is responding to claim notices promptly with full documentation. Dealers who ignore claim notices fare worst with sureties; dealers who engage and document fare best, even when claims are ultimately paid.
After a paid claim
- Reimburse the surety fully
- Provide updated indemnity
- Post collateral if requested
- Document remediation of the underlying issue
- Expect underwriting review at next renewal
Florida vs Neighboring States
Florida's requirements sit roughly in the middle of the southeast. Here is how the bond and key requirements compare to Georgia and Alabama at a glance.
| State | Dealer Bond | License Term | Pre-Licensing Education | CE |
|---|---|---|---|---|
| Florida | $25,000 (MV) | Annual (MV); 1 or 2 yr (MH/RV) | 8 hours (FLHSMV-approved) | 8 hr / 2 yr (VI) |
| Georgia | $35,000 | Annual | Required (state-approved) | Periodic |
| Alabama | $25,000 | Annual | Limited | None standard |
Does HB 637 (2023) Change the Bond?
House Bill 637, codified as Chapter 2023-233 and effective July 1, 2023, made significant changes to the franchisor-franchisee relationship under Chapter 320 — strengthening franchisee protections, restricting manufacturer activities that compete with franchised dealers, and modernizing termination and transfer provisions.
HB 637 did not change the bond. The $25,000 face amount, the Form HSMV 86020 requirement, and the underlying §320.27 licensing structure remain unchanged in 2026. If you read articles online that suggest HB 637 increased the bond, those articles are inaccurate.
Full HB 637 explanationHB 637 Summary
- Effective July 1, 2023
- Franchise dealer protections
- Manufacturer activity restrictions
- Did NOT change bond amount
- Did NOT change Form HSMV 86020
Explore the Full Florida Dealer Silo
This guide is the pillar. Each topic below has its own dedicated page going deeper.
Motor Vehicle Dealer Bond
Product page with quote form and full requirements overview
Florida Dealer Bond Cost
Premium ranges by credit, multi-year discounts
How to Get Licensed
Step-by-step path from entity to FLHSMV inspection
Form HSMV 86020 Guide
Field-by-field walkthrough of the bond form
Florida Dealer Renewal
All three renewal calendars and the 45-day cliff
Independent (VI) Dealer
The most common Florida class — CE requirements detailed
Franchise (VF) Dealer
Manufacturer franchise authorization and December 31 renewal
Wholesale (VW) Dealer
Dealer-to-dealer transactions only
Recreational Vehicle Dealer
$10K / $20K bond on Form HSMV 86019 under §320.771
Mobile Home Dealer
$25K / $50K bond on Form HSMV 86018 under §320.77
Salvage (SD) Dealer
Garage liability exempt — same $25,000 bond
Dealer Education Course
8-hour pre-licensing and CE breakdown
Garage Liability Insurance
$25K CSL + $10K PIP under §320.27(3)
HB 637 Explained
The 2023 franchise dealer law in plain English
License Classifications
VF, VI, VW, VA, SD, MH, RV — which one fits
Glossary of Florida Dealer Bond Terms
Florida's dealer system uses a handful of terms that recur across forms, statutes, and FLHSMV correspondence. Bookmark the ones below.
FLHSMV
Florida Department of Highway Safety and Motor Vehicles — the state regulator that licenses dealers and is the obligee on every dealer bond.
Principal
The licensed dealer named on the bond. The party whose conduct the bond guarantees.
Obligee
The State of Florida, DHSMV — the party protected by the bond and to whom claims are made.
Surety
The insurance carrier that issues the bond and pays valid claims, then seeks indemnification from the principal.
Form HSMV 86020
The Florida motor vehicle dealer surety bond form used for VF, VI, VW, VA, and SD classifications.
Form HSMV 86018 / 86019
The mobile home dealer bond form (86018) and recreational vehicle dealer bond form (86019).
Form HSMV 86056
The dealer license application form — separate from the bond and not to be confused with it.
Garage Liability
Commercial auto liability insurance required for VI, VF, VW, VA dealers under §320.27(3) at $25K CSL + $10K PIP minimum.
Supplemental Location
A secondary dealer site operating under the main license. Subject to $50 supplemental fee per site and full facility compliance.
CE
Continuing education — 8 hours every 2 years for VI dealers (1 hour FLHSMV update, 2 hours legal, 5 hours industry).
CSL
Combined single limit — the form in which Florida states the garage liability minimum.
PIP
Personal injury protection — the no-fault component of Florida auto coverage required at $10,000 minimum for dealers.
Florida Dealer Bond Guide: Frequently Asked Questions
Specific to the Florida dealer license system and the $25,000 surety bond
What is the Florida dealer bond amount in 2026?
For Florida motor vehicle dealers — VF (franchise), VI (independent), VW (wholesale), VA (auction), and SD (salvage) — the bond amount is $25,000 under Fla. Stat. §320.27(1)(c). Recreational vehicle dealers post a $10,000 bond if they operate four or fewer supplemental locations and $20,000 above that, under §320.771. Mobile home dealers post $25,000 up to four supplementals and $50,000 above that under §320.77. The amount is set by statute and cannot be reduced.
Is Form HSMV 86020 the application or the bond?
HSMV 86020 is the bond — the surety instrument issued by your bonding company. It is filed with FLHSMV as evidence of the financial guarantee. Form HSMV 86056 is the license application. They are two separate documents and a common source of confusion when applicants are told to "get the 86020" but assume it is the application packet. The application is 86056; the bond is 86020 (or 86018 for mobile home, 86019 for RV).
How long is the Florida dealer license term?
Florida motor vehicle licenses (VF, VI, VW, VA, SD) are annual — one year. Franchise (VF) dealers renew by December 31 each year; independent, wholesale, auction, and salvage (VI/VW/VA/SD) dealers renew by April 30. Mobile home and recreational vehicle dealers may elect a 1-year or 2-year term with an October 1 expiration. The bond on Form HSMV 86020 is written as a continuous bond — it stays in force until cancelled — but renewal premium is paid annually to keep coverage in effect.
What happens if I renew my Florida dealer license late?
Under §320.27(5), a license renewed within 45 days after expiration carries a $100 late fee. After 45 days, the license cannot be renewed — the dealer must submit a new application as a first-time applicant, including new fingerprints, new background check, and re-completion of any expired prerequisites. FLHSMV recommends renewing at least 30 days before expiration to avoid any gap in licensed operations.
Do salvage dealers need garage liability insurance in Florida?
No. Fla. Stat. §320.27(3) requires VI, VF, VW, and VA licensees to maintain garage liability insurance with at least $25,000 combined single limit plus $10,000 in personal injury protection — but explicitly exempts SD (salvage) dealers from the requirement. Salvage dealers still must post the $25,000 surety bond and comply with every other licensing rule; only the garage liability piece is statutorily waived.
Who can file a claim against my Florida dealer bond?
Under §320.27(9), the bond protects any person — including consumers, the state, financial institutions, and other dealers — who suffers a loss because of the dealer's violation of Chapter 320. Common claim sources are title delays beyond statutory windows, odometer misrepresentation, undisclosed liens, deposit retention without delivery of the vehicle, and tax remittance failures. FLHSMV may also bring a claim on behalf of consumers or the state.
How much does a $25,000 Florida dealer bond cost?
Premium is a small percentage of the $25,000 face amount, driven primarily by the owner's personal credit. For applicants with FICO scores above 700, expect $250 to $500 per year. The 650 to 699 range typically lands at $500 to $1,000 per year. Sub-650 applicants can see $1,000 to $3,750 depending on the depth of credit issues. Multi-year prepayment usually unlocks a per-year discount.
What is the pre-licensing education requirement?
Section 320.27(4)(b) requires all VF, VI, VW, VA, and SD applicants to complete an 8-hour pre-licensing course from an FLHSMV-approved provider before applying. Independent (VI) dealers also complete 8 hours of continuing education every 2 years to renew — broken down as 1 hour FLHSMV update, 2 hours legal compliance, and 5 hours industry topics. Always confirm the provider is on the FLHSMV approved list before paying tuition.
Does HB 637 (2023) change my dealer bond?
No. House Bill 637, codified at Chapter 2023-233 and effective July 1, 2023, modernized franchise dealer protections and the franchisor-franchisee relationship under Chapter 320. It did not change the $25,000 bond amount, the form (HSMV 86020), or the underlying §320.27 dealer license structure. The bond requirement and amount are unchanged in 2026.
Can I substitute a letter of credit for the surety bond?
Yes. Florida permits a letter of credit in lieu of the surety bond. The MV letter of credit form is HSMV 86057 and the mobile home version is HSMV 86058. The letter must be irrevocable, issued by a federally insured financial institution, and run for the same effective term as the bond would. Most dealers find the surety bond more cost-effective than tying up bank credit at the LOC amount.
What is the difference between supplemental and main locations?
Your main location is the principal dealership at the address listed on the license. A supplemental location is any additional site where you display, store, or sell inventory under the same license. Florida charges a $50 supplemental fee per site (§320.27(6)). Each supplemental still needs a permanent sign, posted hours, listed phone, and full facility compliance — but the surety bond on the main license covers the supplementals; no second bond is required per site.
How does Florida's bond compare to Georgia and Alabama?
Florida's $25,000 motor vehicle dealer bond sits between Georgia's $35,000 used-dealer bond and Alabama's $25,000 dealer bond — Alabama matches Florida in face amount, while Georgia is the higher of the three. Process-wise, Florida's 8-hour pre-licensing and continuing education requirement is stricter than Alabama's and broadly comparable to Georgia's. Florida's annual MV license term is shorter than Texas (2 years) but comparable to Georgia (annual) and Alabama (annual).
All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A-minimum rated surety carriers serving all 50 states.
Ready to File Your Florida Dealer Bond?
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