Florida Dealer License — the bond, the fees and the three-car rule, from the statute.
Florida licenses car dealers through the Department of Highway Safety and Motor Vehicles under § 320.27 of the Florida Statutes. Sell or display 3 or more vehicles in 12 months and the law presumes you are in the business. The license takes a $25,000 surety bond, garage liability insurance, a course from a licensed dealer school, fingerprints and $300 for the first year. Here is what the statute actually requires, and how it compares with Texas and California.
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Quick Answer
- How many cars can you sell in Florida without a dealer license?
- Section 320.27 says anyone who buys, sells or displays for sale 3 or more motor vehicles in any 12-month period is presumed to be in the business and needs a license. People disposing of vehicles they acquired for their own use, in good faith, are not dealers.
- How much does a Florida dealer license cost?
- The state fee is $300 for the first year and $75 for the second; renewals are $75 for one year or $150 for two. You also need a $25,000 surety bond, priced by the surety, garage liability insurance of at least $25,000 with $10,000 PIP, the dealer-school course and fingerprinting.
- What are the requirements for a dealer license in Florida?
- An office that is not a residence with room to store the vehicles you offer, the $25,000 bond, the insurance, fingerprints for every owner, partner, officer and director, and proof that you took a licensed dealer school's course within the 6 months before applying. Wholesale dealers skip the display space.
Five steps § 320.27 asks for
The statute sets the pieces; FLHSMV's regional offices process the application and inspect the location.
- 1Pick the license typeFranchised, independent, wholesale, auction or salvage. Used-car lots are independent dealers.
- 2Secure the locationAn equipped office that is not a residence, with space to store every vehicle you offer.
- 3Take the courseFrom a licensed dealer school, within 6 months of applying; exam and 90% attendance.
- 4Buy the bond and insurance$25,000 bond or letter of credit; $25,000 garage liability with $10,000 PIP.
- 5Apply, fingerprints included$300 for the first year; the license can issue while FDLE and the FBI process the prints.
When Florida Says You Are a Dealer
Section 320.27(1)(c) defines a motor vehicle dealer as anyone in the business of buying, selling or dealing in motor vehicles, or offering or displaying them for sale at wholesale or retail. Then it draws the line: a person who buys, sells or deals in 3 or more motor vehicles in any 12-month period, or who offers or displays 3 or more for sale, "shall be prima facie presumed to be engaged in such business".
The same paragraph carves out people who are not dealers: anyone disposing of vehicles acquired for their own use or for use in their business, or acquired by foreclosure or operation of law, as long as the vehicles were bought and sold in good faith and not to dodge the licensing law. Trailer sellers get a separate allowance of 25 trailers in any 12-month period. Texas draws its line at 5 vehicles a year; California has no count at all.
The Five Kinds of Florida Dealer License
Section 320.27(1)(c) names them. The licence you hold decides what you may sell, to whom, and whether you get dealer plates.
Independent
Anyone other than a franchised or wholesale dealer who buys, sells or deals in motor vehicles, and may service and repair them. The used-car lot license.
Franchised
Sells, services and repairs vehicles under an agreement with a manufacturer or distributor. New-car dealers.
Wholesale
Deals exclusively at wholesale or with motor vehicle auctions, only to licensed dealers. No display space required, no dealer license plates.
Motor vehicle auction
Offers vehicles to the highest bidder where the buyers are licensed dealers, and may sell to no one else.
Salvage
Acquires salvaged or wrecked vehicles to resell them and their parts. Exempt from garage liability and PIP on vehicles that cannot legally be driven.
The Place of Business
The application has you certify three things about the location: that it provides an adequately equipped office and is not a residence; that it has sufficient unoccupied space to store all the motor vehicles you offer and display for sale; and that it is a suitable place where you can in good faith carry on the business and keep the records the department can inspect.
Wholesale dealers are exempt from the display provisions but must still keep an office where the records are kept. Each additional permanent location that is not contiguous with the first needs a supplemental license at $50 a year ($100 for a two-year renewal). A supplemental license for an off-premises sale is free, lasts at most 10 consecutive days, and requires notice to the local department office, a sign naming the dealer and the property owner's permission.
The location checklist
- Office: adequately equipped, not a residence.
- Storage: room for every vehicle offered or displayed.
- Records: kept there, open to inspection.
- Extra lots: $50 a year each.
Florida Requirements at a Glance
The statute's money and paperwork on one page: the bond, the insurance minimums, the fees for the first two years and what the course must cover.
Every figure comes from § 320.27 as read on the date shown.
Florida Dealer Fees, Bond and Insurance
From § 320.27(3), (4), (5) and the bond subsection, read on 16 October 2026.
| Item | Amount |
|---|---|
| Initial application, first year | $300 |
| Second year of an initial two-year license | $75 |
| Renewal, one year / two years | $75 / $150 |
| Late renewal, within 45 days of expiry | $100 delinquent fee |
| Change of location | $50 |
| Name change endorsement | $25 |
| Supplemental license, each extra location, per year | $50 |
| Surety bond or irrevocable letter of credit | $25,000, delivered every year |
| Garage liability insurance | $25,000 combined single limit + $10,000 PIP |
So the first two years of an independent license cost $375 in state fees. The bond premium, the insurance premium, the school's tuition and the fingerprint vendor's charge are set by those vendors, not by the statute.
The Bond, the Insurance and the Fingerprints
Before any license issues, and again every year, the dealer delivers a surety bond or irrevocable letter of credit of $25,000 in favor of the department. It is conditioned on the dealer honoring written contracts in the sale or exchange of vehicles and obeying chapters 319 and 320, and anyone in a retail or wholesale transaction who loses money through a violation can claim on it. Any renewal, change or new bond must be filed within 10 calendar days. Texas and California both set their dealer bonds at $50,000.
The application must show garage liability insurance (or general liability coupled with a business automobile policy) of at least $25,000 combined single-limit coverage for bodily injury and property damage, plus $10,000 of personal injury protection. Franchised dealers must carry a garage liability policy specifically. Every applicant, general partner, and corporate officer or director files fingerprints, which the department sends to the Florida Department of Law Enforcement and on to the FBI; the license can issue while the results are pending but is revocable if the application turns out to be untrue.
The Dealer School Course
Every initial application comes with proof that within the preceding 6 months the applicant, or a designated employee, attended a training seminar run by a licensed motor vehicle dealer training school. For independent dealers the statute is more specific: the owner, a partner, an officer or director, or a full-time employee in a management-level position must have completed the school's training, which must cover titling and registration, unfair and deceptive trade practice law, buy-here-pay-here financing law, and other topics the department adds. Completion means passing an exam at the end and attending at least 90% of the hours.
The statute caps the department-required part of the curriculum at 8 hours and leaves the schools to set the rest, so ask the school how long its course runs rather than relying on a number from a surety's blog. Anyone who held a valid Florida dealer license continuously within the past 2 years and is in good standing is exempt. At renewal, each independent dealer certifies 8 hours of continuing education: at least 2 hours on legal or legislative issues, 1 on department issues and 5 on industry topics.
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License Year, Renewal and the Other States
Florida puts every independent, wholesale and auction license on the same calendar: it expires on April 30. Franchised dealer licenses expire on December 31. A renewal filed within 45 days after expiry carries a $100 delinquent fee; after that you reapply. Initial applicants can pay for two years up front ($300 then $75), and renewals come in one-year and two-year versions.
Compared with its neighbors in our series: Texas charges $500 for the first year of a GDN and requires a $50,000 bond; California charges a $175 application fee, requires the same $50,000 bond, and adds a DMV written test with 3 attempts. Florida has no state test beyond the school's exam, a smaller bond, and the lowest sales count before you are presumed a dealer.
Dates to diarize
- April 30: independent, wholesale and auction licenses expire.
- December 31: franchised licenses expire.
- 45 days: late window, $100 fee.
- 10 days: to file a changed or renewed bond or policy.
Related Checks and Guides
Other states in the series, the Florida title pages and the auctions a license opens.
Where These Facts Come From
From the Florida Statutes as published by the Florida Senate, read on 16 October 2026. Rules and fees change; confirm with FLHSMV's regional office before you apply.
CarCheckerVIN is not affiliated with the Florida Department of Highway Safety and Motor Vehicles or any surety, insurer or dealer school. This page is general information, not legal advice. FLHSMV's own site could not be read when this page was written, so form numbers are not quoted here.
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Florida Dealer License — Frequently Asked Questions
What Florida applicants ask most.
How much is the Florida dealer bond?+
$25,000, as a surety bond or an irrevocable letter of credit, delivered to the department before the license issues and every year after. It protects anyone who loses money in a transaction through the dealer's violation of chapters 319 or 320.
Do I need a lot to get a Florida dealer license?+
You need an adequately equipped office that is not a residence and enough unoccupied space to store every vehicle you offer or display. Wholesale dealers are exempt from the display requirement but must keep an office for their records.
Can a Florida wholesale dealer sell to the public?+
No. A wholesale dealer deals exclusively at wholesale or with motor vehicle auctions, may not sell or auction to anyone who is not a licensed dealer, and does not get dealer license plates.
Is there a test for a Florida dealer license?+
Not a state-administered one. The licensed dealer school's course ends in an examination, and you must attend at least 90% of its hours. California, by contrast, has a DMV written test.
When does a Florida dealer license expire?+
Independent, wholesale and auction licenses expire on April 30; franchised licenses on December 31. Renew within 45 days of expiry and the statute adds a $100 delinquent fee.
Does Florida require continuing education for dealers?+
Independent dealers certify 8 hours before each renewal: 2 hours of legal or legislative issues, 1 hour of department issues and 5 hours of relevant industry topics.
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CarCheckerVIN is an independent vehicle-history service and is not affiliated with the Florida Department of Highway Safety and Motor Vehicles. Requirements are summarized from the Florida Statutes and are not legal advice. Records in our reports reflect what was reported to our data providers. Our reports do not include police or repair-shop accident entries.
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