$25,000 surety bond required by the Florida Department of Highway Safety and Motor Vehicles (DHSMV) for every licensed motor vehicle dealer in Florida.
Florida Statute §320.27 requires every licensed motor vehicle dealer to post a $25,000 bond with the Department of Highway Safety and Motor Vehicles (DHSMV) before a license is issued and at every annual renewal. The bond is filed on DHSMV form HSMV 86056.
The bond protects the public, the State of Florida, and any person sustaining damages caused by the dealer's failure to comply with Chapter 320 — commonly:
The Florida dealer bond requirement applies to every license type listed under Chapter 320:
| License Code | Description | Bond |
|---|---|---|
| VI | Independent (used) Motor Vehicle Dealer | $25,000 |
| VF | Franchise Motor Vehicle Dealer | $25,000 |
| VW | Wholesale Motor Vehicle Dealer | $25,000 |
| IH | Independent Heavy Truck Dealer | $25,000 |
| RV | Recreational Vehicle Dealer | $10,000 |
| ML | Mobile Home Dealer | $25,000 |
| SD | Service Facility / Auction | $25,000 |
Independent (VI) applicants must also complete a 8-hour pre-licensing seminar from a DHSMV-approved provider before submitting their application.
Florida dealer bond premiums are credit-based. Most established dealers with good credit pay $175 to $300 per year.
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $175 – $250 | 0.7% – 1% |
| Good Credit | $250 – $400 | 1% – 1.6% |
| Fair Credit | $400 – $625 | 1.6% – 2.5% |
| Credit Challenges | $625 – $1,000 | 2.5% – 4% |
| Past Credit Issues | $1,000 – $1,250+ | 4% – 5%+ |
Florida dealer bonds run on a 1-year term aligned with your dealer license renewal date. The DHSMV mails renewal notices 60 days before expiration; failure to maintain a current bond results in the license being canceled, requiring re-application from scratch.
Similar but the amount differs. Standalone RV dealers (RV license code) post a $10,000 bond. Combined motor-vehicle/RV operations under a VI or VF license post the full $25,000.
Each main license number is bonded once at $25,000, but every supplemental location must be listed on that bond and may require a rider. Confirm with your surety when adding locations.
The DHSMV cancels the license. You cannot legally sell vehicles, transfer titles, or display dealer plates until you re-apply, complete the seminar again (if VI), and post a new bond.
Generally no. Floor-plan defaults are commercial credit disputes between dealer and lender, not consumer protection claims. The bond targets harm to retail customers, the title office, and the state.
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