What you Need to Know about Auto Dealership Surety Bonds in Florida

Although the groundhog said there would be six more weeks of winter, spring is finally here!  And if you’re an auto dealer in Florida, it also means it’s time to renew your surety bond.  It is important to remember, that auto dealer surety bonds expire every year on April 30th, and need to be renewed before or on that date.

Car seller with car buyer looking at electronic tablet

Here are some important factors to remember:

  • Almost every state requires an auto dealership to be licensed and bonded. This makes certain that the auto dealer follows Florida law.
  • All Florida auto dealers should have the Motor Vehicle, Mobile Home, and Recreational Vehicle Dealer’s Handbook in their top drawer.
  • Although it is recommended that you familiarize yourself with all of the industry’s regulations, pay special attention to Chapters 319-320 of the Florida Statutes.
  • If you decide to risk your business and not buy a surety bond and still sell cars, be ready to be slapped with a $500 fine and possible jail time. Additional violations may run upwards of $5,000 per violation.

What makes an auto dealer (therefore, requiring an auto dealer license)?

Simply put, any person who sells more than three cars in a year must be licensed.  Depending on the category of the business, the auto dealership may be labeled as an Independent Dealer, Franchise Dealer, Service Facility, Wholesale Dealer, Auction or Salvage.  To determine which category you fall under, contact us today!

We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship.  We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all.  Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.

 



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