Florida Used Car Dealer License Requirements – how to get your license fast! Here is your step-by-step checklist
If you are in the state of Florida and want to sell more than 3 or more vehicles in a 12-month period, you must have a Florida Dealer License. So you landed on my website because you want to know how to do it yourself. If you don’t want to do it yourself, but want me and my team to do it for you , go here.
To set up your corporation, obtain the necessary forms from the Florida Secretary of State’s office, or go through the online registration process http://dos.myflorida.com/sunbiz/start-business/
Motor vehicle dealers are licensed and regulated by the Division of Motorist Services under Section 320.27, Florida Statutes
To make it easier on yourself in fulfilling the Florida Used Car Dealer License Requirements, the best approach in my mind is to get your location first. It’s obviously easier if you get a DMV approved location. If you cannot do that then you will have to search thru Craigslist and find a location zoned for a used car dealership. You can get something small, like a warehouse location with a small office set up. Or you can get a real estate agent to find a location for you.
Florida Used Car Dealer License Requirements for location are as follows: No motor vehicle or recreational vehicle dealer office shall be maintained from a residence. The office must be in a permanent structure. The office must have a minimum of 100-square feet of interior floor space excluding any hallways, closets or restrooms and a minimum 7’ ceiling. Florida Used Car Dealer License Requirements says that all prospective applicants are advised to contact the regional office serving that area and ask for an inspection of the location before committing time and money at a location that may not meet state requirements. Location and facility requirements are contained in Rule 15C- 23 | P a g e 7.003(4), Florida Administrative Code, (F.A.C.). To view a copy of Rule 15C-7, F.A.C., visit the Department of State’s website at https://www.flrules.org/default.asp
Determine Which Type of License You Need:
- Franchise Dealer: Allows the licensee to sell new motor vehicles under an agreement with a manufacturer. It also permits the licensee to sell used motor vehicles.
- Service facility: Allows licensed franchise dealers to service the makes of vehicle that they sell.
- Independent Dealer: Allows the licensee to buy and sell used motor vehicles at the retail or wholesale level.
- Wholesale Dealer: Allows licensees to buy, sell and deal in motor vehicles exclusively wholesale or with motor vehicle auctions.
Step #1: Receive Approval of dealership location by a DMV Compliance Examiner. You will have to show proof of lease and pictures of your location. This will be attached to your application.
Step #2: Obtain the Florida Used Car Dealer License Application
Download a Florida Used Car Dealer License Application.
Be sure to apply for the correct license.
The correct license type to sell used vehicles is the Independent Dealer (VI).
Step #3: Submit a fee of $300
Department of Highway Safety and Motor Vehicles is the agency that collects this check
- Fee is for each main location
- The office must be in a permanent structure
- The office cannot be in a residence
- The office must have at least 100 square feet of interior floor space, not including hallways, closets, or restrooms. Additionally, the area must have at least a seven-foot ceiling height.
- Make checks payable to “DHSMV”
Step #4: Purchase a $25,000 Florida Independent Motor Vehicle Dealer Bond
The requirements for a used car dealer in Florida (Fl.), is you to post a bond to the amount of $25,000. A used car dealer bond is a type of surety bond. All dealers are required to be bonded. You’ll need to fill out a HSMV form 86020 (with some exceptions, see page 21 of the state’s general guide for details).
Bond Amount Required: $25,000
The used car dealer bond is obtained through a surety bond agency You won’t have to pay $25,000 to secure your bond. You’ll only pay about 1-15% of this amount per year (depending on your credit score). Once you purchase your bond, it will be mailed to you by the surety bond company. Include the original bond with your license application (keep a copy for your records). This is not insurance, don’t get the two confused.
Step #6: Obtain a garage liability insurance certificate
- $25,000 combined single-limit liability coverage
- a bodily injury and property damage protection and
- a $10,000 personal injury protection
Step #7: Provide copy of registration or business
You can do this with the Florida’s Secretary of State – Division of Corporations
Step #8: Submit a copy of corporate papers and corporate meeting notes
These should show the election of corporate directors.
- If the dealership is a Corporation or Incorporation, submit Articles of Incorporation.
- If the dealership is a Limited Liability Company, submit Articles of Organization and Operating Agreement
- If the dealership is a Partnership, submit the Partnership Agreement.
Want your Florida Dealer License in 21 days all do for you ? If you want me and my team to do it for you , go here.
We are almost done with your Florida Used Car Dealer License Requirements and how to get your own dealer license.
Step #9: Get a Sales Tax Number
Download the Florida Business Tax Application form from the State of Florida – Department of Revenue
Step #10: Get your Federal Employer Identification Number
Secure it from the U.S. Internal Revenue Service (IRS).
Step #11: Submit your fingerprints along with corresponding fees
- $54.25 per person
Step #12: Submit paperwork
You need to submit your Florida Used Car Dealer License application with required documentation, your original Florida Independent Motor Vehicle Dealer Bond, and appropriate fees to the Florida Department of Highway Safety and Motor Vehicles.
Upon approval, you’ll receive your newly issued Florida Used Car Dealer License in the mail within a month.
If you have questions about application procedures and licensing requirements, contact the Regional Office.
Step #13: Drink a glass of wine (and relax)
Im sure you will be approved, and your Florida Used Car Dealer License will be mailed to you within 2-3 weeks.
If you are not approved, you should receive a letter within 3 weeks.
Florida Used Car Dealer Licenses are valid for 1 year, expiring on April of each year.