Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) as part of the licensing requirements for dealerships to conduct business in the state. The FLHSMV sets the total bond amount based on the type of dealer license:
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Florida auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Florida auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of Florida.
Florida auto dealer bonds provide protection for customers, creditors, and the state government. When a Florida motor vehicle dealer posts a surety bond, they provide a guarantee to the FLHSMV that they will conduct business in compliance with the conditions listed in Chapters 319 and 320 of the Florida Statutes.
If the auto dealer fails to comply with the statutes, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
To obtain your auto dealer license in Florida, you must meet the FLHSMV licensing requirements by completing the following steps.
All types of Florida auto dealer licenses are issued for a maximum of one year. The expiration dates vary based on the type of dealer license. Below are the licensing periods for each type of auto dealer license:
All licenses expire at the end of the licensing period regardless of when the license was issued. Be aware that license fees are not prorated for licenses issued near the end of the licensing period.