Getting a used car dealer license in Florida

In Florida, used-car dealers are licensed by FLHSMV, Division of Motorist Services.

Before your first retail sale you’ll need a $25,000 surety bond, a 8-hour pre-licensing course and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked · details re-checked against official sources

At a glance

License
Independent Motor Vehicle Dealer (VI) flhsmv.gov (source, opens in a new tab)
Issued by
FLHSMV, Division of Motorist Services flhsmv.gov (source, opens in a new tab)
Surety bond
$25,000 surety bond or qualifying irrevocable letter of credit. flhsmv.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Pre-licensing training at a licensed motor vehicle dealer training school, taken by the owner, a partner, officer or director, or a full-time manager: up to 8 hours on department topics plus up to 24 hours on other regulatory agencies' topics, with at least 90% attendance. Anyone who held a dealer license in good standing continuously for the past 2 years is exempt. leg.state.fl.us (source, opens in a new tab)
Exam
Yes, at the end of the pre-licensing course: completion is determined by an examination given at the end of the training. leg.state.fl.us (source, opens in a new tab)
Official fees
Independent dealer license $300 for the first year (or $375 for a two-year license); each supplemental location $50 a year. leg.state.fl.us (source, opens in a new tab)
Renewal
Renewal $75 a year ($150 for two years). 8 hours of continuing education every 2 years before renewing: at least 2 hours of legal or legislative issues, 1 hour of department issues and 5 hours of motor vehicle industry topics. leg.state.fl.us (source, opens in a new tab)
Site inspection
Yes. Regional compliance examiner/officer approves business location. flhsmv.gov (source, opens in a new tab)

Step by step

  1. Pick the right license type

    For ordinary independent retail sales you need the Independent Motor Vehicle Dealer license (VI) from FLHSMV's Division of Motorist Services. VF is for franchise (new) dealers, VW for wholesale, VA for auctions and SD for salvage. flhsmv.gov › 86056.pdf (source, opens in a new tab)

  2. Find an office that qualifies

    Start here: getting the location approved is usually the hardest part. The office must be in a permanent structure at the licensed address, at least 100 sq ft with a 7-foot ceiling, clearly separated from any other business, and never in a residence. The address must be assigned by the USPS, and you post your business hours at the main entrance and keep them. flrules.org › readFile.asp (source, opens in a new tab) flhsmv.gov › 86056.pdf (source, opens in a new tab)

  3. Set up the display area and sign

    The display area has to hold every vehicle you offer for sale, be under your exclusive control, sit next to the office and open directly onto a public street. Customer or public parking doesn't count, and next to another dealer you need a permanent barrier at least 3 feet high. The sign must identify the dealership with lettering readable from 50 yards from the road. flrules.org › readFile.asp (source, opens in a new tab)

  4. Get the location approved

    A regional compliance examiner approves the business location. Get that done before you assemble the final application. flhsmv.gov › 86056.pdf (source, opens in a new tab) flhsmv.gov › dealerhandbook.pdf (source, opens in a new tab)

  5. Complete the pre-licensing training

    The owner, a partner, officer or director, or a full-time manager attends training at a licensed motor vehicle dealer training school: up to 8 hours on department topics and up to 24 hours on other agencies' topics, with at least 90% attendance and an exam at the end. If you've held a dealer license in good standing for the past 2 years, you're exempt. leg.state.fl.us › index.cfm (source, opens in a new tab)

  6. Get insurance and the bond

    You need garage liability insurance of at least $25,000 combined single limit plus $10,000 personal injury protection, and a $25,000 surety bond or a qualifying irrevocable letter of credit. On the bond, you don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. leg.state.fl.us › index.cfm (source, opens in a new tab) flhsmv.gov › 86056.pdf (source, opens in a new tab)

  7. Apply to the regional office

    Submit form HSMV 86056 with your supporting documents and fees. The license costs $300 for the first year, or $375 for a two-year license, and each supplemental location is $50 a year. flhsmv.gov › 86056.pdf (source, opens in a new tab) flhsmv.gov › 86720.pdf (source, opens in a new tab)

  8. Resolve any deficiencies

    If the regional office finds anything missing, fix it. Once the paperwork is complete and error-free, the FLHSMV handbook says the license is issued within 5 business days. That covers the paperwork, not the whole job of opening. flhsmv.gov › 86056.pdf (source, opens in a new tab) flhsmv.gov › dealerhandbook.pdf (source, opens in a new tab)

  9. Keep it current

    Renew on form HSMV 86720 for $75 a year, or $150 for two years. Every 2 years you need 8 hours of continuing education before renewing: at least 2 hours of legal or legislative issues, 1 hour of department issues and 5 hours of industry topics. flhsmv.gov › 86056.pdf (source, opens in a new tab) flhsmv.gov › 86720.pdf (source, opens in a new tab)

The location

Display lot
Display space must be big enough to hold every vehicle offered for sale, under the dealer's exclusive control, next to the office, with direct access to a public street. Customer or public parking does not count; next to another dealer, a permanent barrier at least 3 feet high is required. flrules.org (source, opens in a new tab)
Office
Office in a permanent structure at the licensed location, at least 100 sq ft of interior floor space with a 7-foot ceiling, clearly separated from any other business. Hours of operation posted at the main entrance and kept; records open to department inspection during reasonable hours. flrules.org (source, opens in a new tab)
Sign
A permanent sign identifying the dealership, with lettering readable from 50 yards from the public right-of-way. flrules.org (source, opens in a new tab)
Zoning and home-based lots
The office may not be in a residence. The location needs a USPS-assigned street address, and any move needs department approval first. flrules.org (source, opens in a new tab)

Before you apply

Business entity registration, a lease or deed for the location, and garage liability insurance of at least $25,000 combined single limit (bodily injury and property damage) plus $10,000 personal injury protection. leg.state.fl.us (source, opens in a new tab)

Forms

HSMV 86056: Application for a License as a Motor Vehicle, Mobile Home or Recreational Vehicle Dealer. HSMV 86720: renewal. flhsmv.gov (source, opens in a new tab)

Get the current versions from flhsmv.gov; we don’t host copies.

Not the license you’re after?

VF franchise/new; VW wholesale; VA auction; SD salvage. Select VI for ordinary independent retail. flhsmv.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: obtaining location approval before assembling the final application.

Easy mistakes:

Questions

How much does a Florida dealer license cost?

The license is $300 for the first year, or $375 for two years, plus $50 a year for each extra location. The bond premium, the garage liability insurance and the location cost more, and vary too much to quote. leg.state.fl.us › index.cfm (source, opens in a new tab) flhsmv.gov › 86056.pdf (source, opens in a new tab)

Is there a test?

Yes. The pre-licensing training ends with an exam, and passing it is how completion is decided. leg.state.fl.us › index.cfm (source, opens in a new tab)

Can I run a dealership from home in Florida?

No. The dealer office can't be in a residence; it has to be in a permanent structure at the licensed location. flrules.org › readFile.asp (source, opens in a new tab)

How long does it take?

Once your application is complete and error-free, the FLHSMV handbook says the license is issued within 5 business days. Getting the location approved and finishing the training come first, and take longer. flhsmv.gov › dealerhandbook.pdf (source, opens in a new tab) flhsmv.gov › 86056.pdf (source, opens in a new tab)

Do I need continuing education?

Yes: 8 hours every 2 years before you renew. leg.state.fl.us › index.cfm (source, opens in a new tab)

Sources

Not affiliated with the Florida HSMV. Not legal advice. Requirements change; always confirm with the state.