A Florida Auto Dealer License, issued by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), opens the door to wholesale car auctions, unlimited vehicle sales, and the ability to operate as a legitimate business. Unlike some states, Florida offers flexibility—there’s no minimum number of cars you must sell to keep your license active. This guide covers everything you need to know, including the requirements, costs, and benefits of getting your dealer license. If you’ve been searching for the right information, you’ve found it—let’s get started.
Florida Dealer License Requirements
This checklist will provide you with the resources and key steps required to get a vehicle Dealer License in Florida. This helps simplify the process, reducing confusion and preventing common delays. By following these steps, you’ll be ready to submit your application to become a licensed vehicle Dealer in Florida as soon as possible.
1. Name Your Dealership
You must establish your business as a legal entity such as an LLC, Corporation, Partnership, or Sole Proprietorship to start your application.
- LLC or Corporation: Best option for individuals or groups with the flexibility to add or remove members both during the application process and when licensed.
- Sole Proprietorship: An option for an individual who does not need others on the Dealer License, (cannot be changed later to an LLC or Corporation).
- Partnership: An option for two (or more) people, but it is risky. Your Dealer License will be cancelled if any partner leaves the business.
2. Complete a Dealer Pre-Licensing Training
To obtain your Florida dealer license, you must complete a pre-licensing training course and pass an exam from an FLHSMV-approved dealer training school. The exam consists of 50 multiple-choice questions, with a required passing score of 75%. Upon successful completion of the course and exam, you will receive an official Certificate of Completion, which is required for your Florida Dealer License application.
3. Choose a Florida Dealer License Type
Florida offers various Dealer License types, from selling new or used vehicles, mobile homes and recreational vehicles to starting an auction. Each license type has specific requirements and privileges set by the FLHSMV.
- Vehicle Independent dealer (VI)
- Vehicle Wholesale dealer (VW)
- Vehicle Auction dealer (VA)
- Salvage dealer (SD)
- Vehicle Franchised dealer (VF)
- Service facility (SF)
- Mobile home dealer (DH)
- Mobile home broker (BH)
- Recreational motor vehicle dealer (RV)
- Recreational used motor vehicle dealer (RU)
4. Secure a Business Location
Your dealership must have a physical commercially zoned office that complies with FLHSMV’s requirements.
- Commercial Office: Minimum of 100 square feet (not a residence).
- One Display Space: Reserved exclusively for vehicle inventory (not required for Wholesale)
- Permanent Sign: Visible from at least 50 yards from the public right-of-way.
- Posted Business Hours: Located at the main entrance.
- Zoning Approval: Ensure your location is approved by your local city or county for vehicle sales.
5. Request a Location Inspection
The Division of Motorist Services will inspect your dealership location to ensure it meets all state requirements, giving you confidence that your setup is fully compliant before you begin operations. This step streamlines the approval process, helping to avoid any issues later and ensuring your dealership is ready to operate smoothly from day one.
6. Get a Florida Auto Dealer Surety Bond
Florida requires Vehicle Dealers to secure a $25,000 surety bond or an equivalent irrevocable letter of credit issued by a Florida bank. This bond, often called a Dealer Bond, protects the FLHSMV and other parties from potential fraud or misconduct by the dealer.
You don’t pay $25,000 to get this bond. You’ll pay a small percentage of the bond amount (typically around $200-$500).
7. Get Garage Liability Insurance
Florida Dealer Applicants must provide proof of garage liability insurance policy with a minimum of $25,000 combined single-limit liability and $10,000 personal injury protection (PIP).
- Insurance Required: Independent Motor Vehicle Dealer (VI), Auction Dealer (VA), Wholesale Dealer (VW), Recreational Vehicle Dealer (RV), Recreational Used Motor Vehicle Dealer (RU).
- Insurance NOT Required: Salvage Dealer (SD), Mobile Home Dealer (DH), Mobile Home Broker (BH)
8. Get a Florida Sales Tax Number
Before applying for your Florida Dealer License, you must register for a Sales Tax Number with the Florida Department of Revenue (DOR). This allows you to collect sales tax on vehicle sales and purchase inventory tax-free for resale.
9. Get a Florida LiveScan Fingerprinting
Anyone listed on your Florida Dealer License Application must submit electronic fingerprints through an FDLE LiveScan Service Provider for a standard background check.
10. Apply for your Florida Dealer License
Complete and mail the Florida Dealer License Application form (HSMV 86056) and all required documents from the steps listed above to the Division of Motorist Services Regional Office responsible for your dealership’s location. Once approved, you will receive your Florida Dealer License, allowing you to sell vehicles and access wholesale vehicle auctions across the country.
- Application Fee: $300 check payable to the “Florida Department of Highway Safety and Motor Vehicles (FLHSMV)”.
- Processing times may vary. Contact your regional office for updates.
Florida Dealer License Costs
Fees are paid directly to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) and are required to get and renew your dealer license. Here’s how much it costs, depending on your license type:
- Motor Vehicle Dealer License
- First Year Application Fee: $300 (non-refundable).
- Annual Renewal: $75, due by April 30 each year.
- Mobile Home or Recreational Vehicle Dealer License
- First Year Application Fee: $340 (non-refundable)
- Annual Renewal: $75, due by April 30 each year.
Florida Dealer License Benefits
A Florida Dealer License gives you exclusive access to opportunities the general public cannot take advantage of, allowing you to operate legally, and streamline your vehicle sales process. Whether you’re looking to grow a business or gain an edge in the auto industry, having a dealer license opens doors that wouldn’t otherwise be available.
- Access to Wholesale Auctions: Get access to Dealer-only auction sales like Manheim, ADESA, and Copart not only in Florida, but across the country that are not open to the public.
- Buy & Sell Unlimited Vehicles: Legally buy and sell as many vehicles as you want.
- No Tax or Registration: Purchase vehicles tax and registration free, saving thousands on inventory costs.
- Florida Dealer License Plates (Tags): Drive your dealer inventory vehicles with your Dealer Plates while you get them ready to sell.
- Financing & Floor Plans: Use dealer floor plans to finance your inventory instead of paying cash upfront, so you can stock more cars and grow your business.
- Operate a Legitimate Florida Business: Legally run a car dealership in Florida and qualify for tax write-offs.
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