Florida Motor Vehicle Dealer Bond-- $25,000 FLHSMV Bond on Form HSMV 86020

For the motor vehicle classes regulated under Fla. Stat. 320.27 -- VF (franchise), VI (independent/used), VW (wholesale), VA/EH (auction), and SD (salvage) -- the bond amount is $25,000 and the bond is filed on Form HSMV 86020. The bond amount differs for other dealer credentials governed by separate statutes: recreational vehicle (RV) dealers post $10,000 or $20,000 under Fla. Stat. 320.771 on Form HSMV 86019, and mobile home (MH) dealers post $25,000 or $50,000 under Fla. Stat. 320.77 on Form HSMV 86018. Any blanket statement that "the Florida dealer bond is $25,000" is only accurate for the motor vehicle classes.

No -- and this is one of the most common errors on rejected filings. Form HSMV 86020 is the Motor Vehicle Dealer Surety Bond form itself; it is the executed surety instrument signed by the principal (the dealer) and the surety company. Form HSMV 86056 is the dealer license application. The two are filed together when applying for a VF, VI, VW, VA, or SD license, but they are separate forms with different signatories. Filing the application on a bond form, or vice versa, results in rejection by the FLHSMV Bureau of Dealer Services.

Expiration depends on the class. VF (franchise) licenses expire December 31 annually. VI, VW, VA, and SD licenses expire April 30 annually. MH and RV credentials are issued on a 1- or 2-year term beginning October 1. Under Fla. Stat. 320.27, renewals must be filed at least 30 days before expiration. A late renewal filed within 45 days of expiration carries a $100 late fee; once 45 days have passed, the dealer must file a new application. Annual renewal fees for the motor vehicle classes are $75 (not $300 as some out-of-state guides incorrectly cite).

No. This is a unique Florida exemption. Fla. Stat. 320.27(3) requires VF, VI, VW, and VA licensees to maintain garage liability insurance with at least $25,000 combined single-limit (bodily injury plus property damage) coverage plus $10,000 personal injury protection (PIP). Salvage motor vehicle dealers (SD class) are statutorily exempt from the garage liability requirement, although they remain subject to the $25,000 surety bond requirement on Form HSMV 86020. Competitor guides that lump SD dealers into the garage-liability mandate are wrong on this point.

Under Fla. Stat. 320.27(4)(b), franchise dealer applicants (VF) must complete an 8-hour FLHSMV-approved pre-licensing course covering Florida dealer law and operations. Independent, wholesale, auction, and salvage dealer applicants (VI, VW, VA, SD) must complete a separate 8-hour FLHSMV-approved course oriented toward their license class. Independent (VI) dealers must additionally complete 8 hours of continuing education every 2 years -- 1 hour of FLHSMV updates, 2 hours of legal topics, and 5 hours of industry/operational content. The provider must be FLHSMV-approved; certificates from unapproved providers will not be accepted.

Fla. Stat. 320.27(3) requires a permanent, non-residential business location with an equipped office, an inventory display area, exterior signage identifying the dealership, posted business hours, and a working telephone listed in the dealer’s name (not a personal cell line). The facility must be inspected and approved before a license is issued. Home-based applications are routinely denied. Shared offices and "virtual" addresses do not satisfy the permanent-location standard.

The bond is conditioned on the dealer’s compliance with Fla. Stat. 320.27 and related sections. Common claim triggers include odometer fraud, title fraud or failure to deliver clear title to a buyer, failure to remit sales tax or registration fees collected from a customer, misuse of temporary tags, sale of a vehicle with undisclosed material defects, and consumer judgments tied to deceptive trade practices under Chapter 501. Claims are paid up to the $25,000 face amount across the entire bond term; the surety has an indemnity right against the dealer for any amount paid.

Three differences trip up dealers moving to Florida. First, the dollar amount is class-specific in Florida -- not a single blanket figure. Second, the bond form is statute-specific: Form HSMV 86020 for motor vehicle classes, HSMV 86019 for RV, HSMV 86018 for MH. A multi-state generic dealer bond will be rejected. Third, the obligee is the Florida Department of Highway Safety and Motor Vehicles -- not the Department of Revenue, not the county tax collector. Bonds drawn to the wrong obligee are rejected by the Bureau of Dealer Services without exception.

For applicants with strong credit, the bond can be issued the same business day after the quote is bound -- many submissions clear automated underwriting in minutes. Substandard credit submissions typically take 1-2 business days because the file routes to a high-risk market and may require additional documentation (personal financial statement, recent tax returns, indemnity from a spouse or business partner). The principal must sign the executed bond before it is filed; original wet-ink signatures are no longer required by FLHSMV for the 86020 series, but the surety’s seal and power-of-attorney attachment must be present.

No. CS/CS/HB 637 (2023), enacted as Chapter Law 2023-233 and effective July 1, 2023, made adjustments to franchise dealer protections under Chapter 320 but did not change the $25,000 bond amount under Fla. Stat. 320.27. The bond amount has been $25,000 for the motor vehicle classes for several legislative cycles. Any quote or guide suggesting that the 2023 bill increased the bond is incorrect.