Florida Independent Motor Vehicle Dealer Bond (VI)— $25,000 §320.27 Bond

VI is the Florida Department of Highway Safety and Motor Vehicles license code for an Independent Motor Vehicle Dealer. The "I" stands for independent — meaning the dealer is not operating under a manufacturer franchise agreement. VI dealers sell used vehicles only. New-vehicle sales require a VF (franchise) license tied to a written franchise from the original equipment manufacturer. Under Fla. Stat. 320.27(1)(c)2, the VI license is the credential most commonly issued to used-car lots and buy-here-pay-here operators in Florida.

The VI dealer bond is $25,000. The amount is fixed by Fla. Stat. 320.27(1)(c) and is uniform across the motor vehicle dealer classes — VF, VI, VW, VA/EH, and SD all carry the same $25,000 penal sum. The bond is filed on Form HSMV 86020 with the FLHSMV Bureau of Dealer Services. The dealer pays a premium that is a small percentage of the $25,000 face — typically $250 to $3,750 per year depending on personal credit. The $25,000 is the maximum claim exposure, not the cost.

No. The VI license authorizes sale of used vehicles only. To sell new vehicles in Florida, a dealer must hold a VF franchise license, which requires a written franchise agreement with the manufacturer and is filed under a separate provision of Fla. Stat. 320.27. A VI dealer who sells a new vehicle is operating outside the scope of the license and exposes the bond to a claim, as well as administrative action under Fla. Stat. 320.27(9). Auctions and trade-ins of new vehicles are permitted in limited situations, but routine new-vehicle retail sales require the VF credential.

No. The buy-here-pay-here (BHPH) model is a financing arrangement, not a separate license classification. A used-car dealer who finances the sale in-house is still licensed as a VI independent dealer under Fla. Stat. 320.27. The same $25,000 bond on Form HSMV 86020, the same garage liability insurance, the same 8-hour pre-licensing course, and the same April 30 renewal apply. A BHPH dealer engaged in retail installment financing may need additional Office of Financial Regulation registrations under Chapter 520, but the dealer credential remains VI.

VI licenses expire April 30 annually. The renewal fee is $75. Renewal must be filed at least 30 days before expiration under Fla. Stat. 320.27. A late renewal filed within 45 days of expiration carries an additional $100 late fee; after 45 days, the dealer must file an entirely new application including a new $300 application fee, a new $25,000 bond, a fresh background check, and a new facility inspection. The April 30 cycle is distinct from the December 31 cycle that applies to VF franchise licenses — this is a common point of confusion for dealers transitioning between license classes.

Form HSMV 86020 is the surety bond instrument — the $25,000 bond signed by the principal (dealer) and the surety company, with the surety seal and attached power of attorney. Form HSMV 86056 is the dealer license application — a separate document signed by the applicant and listing facility, ownership, and operational details. The two forms are filed together when applying for a VI license, but they are independent instruments with different signatories. Confusing the two is the single most common rejection reason at the Bureau of Dealer Services.

VI applicants must complete an 8-hour pre-licensing course delivered by an FLHSMV-approved provider. The VI curriculum is shared with VW (wholesale), VA (auction), and SD (salvage) applicants and covers Fla. Stat. 320.27, titling, sales tax, recordkeeping, consumer protection under Chapter 501, and dealer-law fundamentals. The course is required before filing Form HSMV 86056; the completion certificate is part of the application packet. Note that VI is the only motor vehicle dealer class with an ongoing continuing-education requirement — 8 hours every 2 years.

Under Fla. Stat. 320.27(4)(b), independent (VI) dealers must complete 8 hours of continuing education every 2 years to renew the license. The breakdown is 1 hour of FLHSMV updates, 2 hours of legal topics, and 5 hours of industry/operational content. The course must be delivered by an FLHSMV-approved provider, and the certificate is filed at the matching renewal cycle. Missing the CE is grounds for non-renewal even if the bond and insurance are current. The CE requirement applies to VI dealers specifically — VF franchise dealers are not subject to it.

Yes. Fla. Stat. 320.27(3) requires VI dealers to maintain garage liability insurance with a minimum $25,000 combined single limit (bodily injury and property damage) plus $10,000 personal injury protection (PIP). The certificate of insurance is filed with the application and at each renewal. A lapse in coverage is an independent ground for license suspension under Fla. Stat. 320.27(9). Note that the SD salvage class is statutorily exempt from this requirement, but VI dealers are not — garage liability is mandatory for any VI licensee.

For applicants with strong credit, the bond can be issued the same business day after the quote is bound — many submissions clear automated underwriting within a few hours. Substandard credit submissions typically take 1 to 2 business days because the file routes to a high-risk surety market and may require additional documentation: personal financial statement, recent tax returns, business plan for first-time dealers, and indemnity from a spouse or business partner. Once the bond is bound, FLHSMV accepts the executed Form HSMV 86020 with the application packet at the Bureau of Dealer Services.