What are the bond requirements for an independent auto dealer operating in Florida?

Florida requires all motor vehicle dealers — independent and franchise — to maintain a surety bond of $25,000 (flat amount, regardless of locations). Mobile home and RV dealers have separate bond amounts that vary by number of supplemental locations. This applies to any dealer licensed in Florida.

Disclaimer: This content is for informational purposes only and does not constitute legal, financial, or insurance advice. Requirements may change. Verify current rules with FLHSMV or a licensed professional.

Why is a dealer bond required?

The surety bond is a licensing requirement enforced by the Florida Highway Safety and Motor Vehicles (FLHSMV). It acts as a financial backstop — if a dealer violates state laws, consumers can file a claim against the bond to recover damages. The dealer is then personally liable to reimburse the surety.

Bond amounts by license type

• Motor vehicle dealer (independent/franchise): $25,000 (flat, all locations).
• Mobile home dealer: $25,000 (up to 4 supplemental locations); $50,000 if more than 4 supplemental locations.
• Recreational vehicle (RV) dealer: $10,000 (up to 4 supplemental locations); $20,000 if more than 4 supplemental locations.

What does the bond protect?

The dealer bond protects consumers from:

• Fraudulent sales practices
• Failure to deliver clear title
• Misrepresentation of vehicle condition
• Failure to pay off liens
• Other violations of Florida dealer regulations

How to obtain your dealer bond

1. Apply with a surety company - Work with a licensed surety provider that specializes in Florida dealer bonds.
2. Undergo underwriting - The surety company will pull the owner’s personal credit score, which is the primary factor in determining your premium
3. Pay the premium - Rates vary by credit tier: ~1–3% for strong credit, up to 10–15% for challenged credit
4. Receive your bond - Once approved, the surety files your bond certificate with FLHSMV on your behalf

Bond renewal and compliance

Your dealer bond must remain active as long as you hold your dealer license and must be renewed alongside it. If your bond lapses, FLHSMV can suspend or revoke your license and may impose fines of up to $1,000 per violation.

Get your Florida dealer bond today

At ISBA, we specialize in obtaining dealer bonds quickly with competitive rates. Our team understands Florida’s requirements and can help you secure your bond so you stay compliant from day one.

Related resources

• What a dealer bond covers: /isba/resources/what-is-motor-vehicle-dealer-bond
• Insurance minimums: /isba/resources/florida-dealer-insurance-requirements-explained
• Garage liability basics: /isba/resources/what-is-garage-liability-policy

Quick FAQ

• How much is the bond for Florida motor vehicle dealers? $25,000 flat statewide (independent/franchise). Mobile home and RV dealer bonds have different amounts by license type and number of supplemental locations.
• Who does the bond protect? Consumers. If a dealer violates state laws, affected customers can file a claim against the bond to recover damages.
• What does it cost? Depends on the owner’s credit score. Typically 1–3% for strong credit, up to 10–15% for challenged credit.
• What if my bond lapses? FLHSMV can suspend or revoke your dealer license and may impose fines of up to $1,000 per violation.

References

[1] https://www.flhsmv.gov/motor-vehicles-tags-titles/dealers-installers-manufacturers-distributors-importers/mv-rv-mh-dealer-broker-licenses/mv-rv-mh-dealers-faqs/ [2] https://www.flhsmv.gov/insurance/

Last reviewed: February 4, 2026.