How to get a dealer license in Florida

No person may engage in business as a motor vehicle dealer in Florida without first getting a license (s. 320.27(2), F.S.). FLHSMV says anyone who buys, sells, offers for sale, displays for sale, or deals in three or more motor vehicles within any 12-month period needs a dealer license.

• Independent Motor Vehicle Dealer (VI): Buying, selling, or dealing in used motor vehicles, including selling to the public.
• Wholesale Motor Vehicle Dealer (VW): Dealing only at wholesale with other licensed dealers or through auctions. No dealer plates and no display space required.
• Motor Vehicle Auction (VA): Selling motor vehicles and RVs by bid to licensed dealers. An auction that sells at retail needs a VI license.
• Franchised Motor Vehicle Dealer (VF): Selling new motor vehicles under an agreement with a manufacturer, importer, or distributor.
• Franchised Motor Vehicle Service Facility (SF): A franchised dealer's service and repair facility at a separate location. No vehicle sales allowed there.
• Salvage Motor Vehicle Dealer (SD): Acquiring salvaged or wrecked vehicles to resell them or use them for parts.
• Mobile Home Dealer (DH), Mobile Home Broker (BH), Recreational Vehicle Dealer (RV), Used Recreational Vehicle Dealer (RU): Dealers and brokers of mobile homes and dealers of new or used recreational vehicles, licensed under ss. 320.77 and 320.771, F.S.

Surety bond. Submit an original $25,000 surety bond on form HSMV 86020, or an irrevocable letter of credit from a bank authorized to do business in Florida on form HSMV 86057 (s. 320.27(10), F.S.). The bond must use the state's exact form language. A new bond, letter of credit, or continuation certificate is due with each renewal. Mobile home and RV dealers use different bond forms.

Insurance. Garage liability insurance with at least $25,000 combined single-limit coverage for bodily injury and property damage, plus $10,000 personal injury protection. Independent, auction, and wholesale dealers may instead carry a general liability policy plus a business automobile policy with the same minimums. Salvage dealers are exempt. The insurance agent must sign the certificate.

Place of business. A FLHSMV compliance examiner must inspect and approve the site, and FLHSMV recommends not signing a lease until it is approved. The office must be in a permanent structure at the licensed location, not in a residence, with at least 100 square feet of floor space and a 7-foot ceiling, clearly separated from any other business. An office trailer must be anchored. Display space must hold all vehicles offered for sale, be under your exclusive control, not include customer, employee, or public parking or any public right-of-way, and have access to a public street. It may be inside a building. Display spaces of different dealers must be divided by a permanent barrier at least 3 feet high. Post and keep business hours, put up a permanent sign readable 50 yards from the public right-of-way, use a USPS-assigned address, and make dealing the principal business at the location. Meet local zoning and occupational license rules (Rule 15C-7.003, F.A.C.).

Background check. Each owner, partner, corporate officer, director, member, and manager must be electronically fingerprinted by an FDLE-approved provider for state and FBI checks, and the applicant pays the cost. FDLE keeps the results for only 6 months, after which new fingerprints are needed, so apply well before then. The application asks about felonies and motor vehicle law violations, and you must attach certified court records for any conviction. FLHSMV may issue a license while results are pending, but it can revoke the license if the application was not true.

Pre-license education. Required (16 hours). Approved courses and details.

1. Find a location that meets Rule 15C-7.003 and have a FLHSMV compliance examiner from your regional office inspect it before you sign a lease.
2. Register your business and any fictitious name on Sunbiz, and get an FEIN from the IRS and a sales tax number from the Florida Department of Revenue.
3. Complete the 16-hour pre-licensing course at an FLHSMV-approved dealer training school within 6 months before you apply.
4. Get electronic fingerprints for each owner, officer, and partner from an FDLE-approved provider.
5. Buy a $25,000 surety bond on form HSMV 86020, or get an irrevocable letter of credit on form HSMV 86057.
6. Get garage liability insurance, or general liability plus business auto coverage, with at least $25,000 combined single limit and $10,000 personal injury protection.
7. Submit application HSMV 86056, with a notarized certification for each officer, the $300 fee, and all documents, to your regional office.

Official forms:

• Application for a License as a Motor Vehicle, Mobile Home, or Recreational Vehicle Dealer (HSMV 86056)
• Surety Bond for Motor Vehicle Dealers (HSMV 86020)
• Irrevocable Letter of Credit for Motor Vehicle Dealer (HSMV 86057)
• Renewal Application for Motor Vehicle, Mobile Home, or Recreational Vehicle Dealers (HSMV 86720)
• Modification to Dealer License for Motor Vehicle, Mobile Home, or Recreational Vehicle Dealers (HSMV 86072)

Retail dealers need display space big enough for all vehicles offered for sale, but there is no minimum size and the space may be inside a building. A wholesale dealer (VW) is exempt from the display requirement but must keep an office with records available for inspection, may sell only to licensed dealers or auctions, and cannot use dealer plates.

A Florida motor vehicle auction may sell only to licensed motor vehicle dealers, and only licensed dealers or their authorized bona fide employees may bid (s. 320.27(1)(c)4., F.S.; FLHSMV dealer FAQ). AuctionACCESS (auctionaccess.com) restricts membership to licensed vehicle dealers and their authorized representatives.

Renew for 1 year ($75) or 2 years ($150) on form HSMV 86720. Independent, wholesale, and auction licenses expire April 30, and franchised dealer licenses expire December 31. If you do not file at least 30 days before expiration, you must stop doing business on the expiration date. A renewal filed within 45 days after expiration owes a $100 late fee; after that you must reapply and pay the initial fee. Independent dealers must certify 8 hours of continuing education every 2 years: 2 hours of legal or legislative issues, 1 hour of department issues, and 5 hours of industry topics. Each renewal needs a bond, letter of credit, or continuation certificate and proof of insurance.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), Division of Motorist Services before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Florida.