Florida Motor Vehicle Dealer Bonds

Florida has auto dealer bonds for each of the four types of dealerships per the Florida DMV; motor vehicle dealers (used), franchise auto dealers (new), mobile home dealers, and recreational vehicle dealers. For all varieties of dealer bonds, we offer the lowest prices in the market through our A-rated insurance carriers.

Upon purchasing the bond, you will receive a copy via email shortly after. You will have to file with your dealer bond to the Florida Department of Motor Vehicles (DMV).

How Much Does a Motor Vehicle Dealer Bond Cost?

Auto dealer bonds in Florida cost between $100 to $750 starting out and depend on several factors, including: penalty limit, type of dealer, and personal credit of the dealership owner.

Price Tier* Motor Vehicle Dealer Bond
Monthly | Annual
Preferred $12 | $125
Standard $21 | $250
Credit Repair $47 | $599
Motor Vehicle Dealer Bond
Price Tier
Monthly | Annual
$12 | $125
$21 | $250
Credit Repair
$47 | $599
*The cost of the bond is based on a variety of factors including personal credit of the dealer, license history, type of dealership, etc. Not all pricing tiers are shown in the above chart. Prices shown are not a guarantee, as underwriting approval is required.

Used motor vehicle dealers must have a $25,000 limit auto dealer bond. The lowest price in full for the year is $169 or monthly at $15. For current used car dealers all bonds are filed on April 30th in the year they expire. Used dealer applicants need to purchase a short term bond that expires on the April 30th.

The motor vehicle dealer bond for franchise dealers has a limit of $25,000. The cost for these can range from $169 to $225 annually, or $15 to $21 monthly. Franchise Auto Dealer Bonds have a common expiration date of December 31st.

Mobile home dealers are required to carry a bond in the amount of $25,000 as well. For one year, the cost starts at $13 per month, or $150 for the full year. If you are a mobile home dealer with five or more supplemental locations, you are required to carry a $50,000 bond.

The bond limit for a recreational vehicle dealer is $10,000. Prices are lower for this bond type in comparison to others due to the lower bond limit. Cost starts at $100 annually or $9 monthly. Please note that if more than four supplemental locations are being used to sell recreational vehicles, the bond amount increases to $20,000. Mobile home and recreational dealer bonds have a common expiration date of September 30th.

How Simple Is Applying for a Motor Vehicle Dealer Bond in Florida?

The application process for the auto dealer bond can be done in less than a minute. All you have to do is click the apply now button below that corresponds with your dealership type. After following the instructions, you will receive a quote and be able to purchase the bond instantly.

Bond Applications for Florida Dealers

Motor Vehicle Dealer Bond

Motor Vehicle Dealer Bond Requirement

The surety bond is required for all motor vehicle dealers by the Florida Department of Highway Safety and Motor Vehicles. Auto dealer bonds are meant to protect the purchaser of the vehicle, as well as the State of Florida. By becoming a licensed motor vehicle dealer, you are agreeing to the state and federal laws to transact as an auto dealer within the state of Florida. More can be read about the requirement at the Florida DMV website.

The dealer bond must be purchased for a full year term, and renewed for successive 12-month terms thereafter. Bonds expire on April 30th of each year alongside the dealer license.

What Is the Bond Claims Process?

Auto dealers in the state of Florida can have a claim filed on their bond for failure to comply with state regulations. Some reasons behind a claim arising are: not paying state fees and taxes, not providing proper paperwork along with a vehicle purchase, and fraud of any sort. Customers, as well as the State of Florida, are able to start the claims process, if deemed necessary.

Filing a claim is different in Florida compared to other states. A customer that wants to file a claim must first submit a demand letter to the motor vehicle dealer before filing a claim with the state. The letter must include the name, address, and phone number of the claimant, list the address and name of the dealership, describe why the claim is being filed, and have the estimated amount of damages. Once the dealer receives the demand letter, they then have 30 days to negotiate with the customer before any civil litigation can be pursued.

If the issue cannot be resolved within the 30 days of receiving the demand letter, the claim may then go into effect and be paid out. If a legitimate claim is filed on an car dealer bond, the surety company will pay up to the penalty limit of the bond to the claimant. In a typical insurance policy, the insurer pays the claim and does not need to be reimbursed. However with a surety bond, like the Florida dealer bond, the principal is responsible to pay the surety company back for the full amount fronted and potentially and legal fees. If the dealer does not pay the surety company back, their license is at risk to go into suspension.