Florida Franchise Motor Vehicle Dealer Bond |
AmeriPro Surety Bonds | 844-589-9732
Florida Motor Vehicle Dealer Franchises
Florida franchise motor vehicle dealers are regulated by the Florida Department of Highway and Safety Motor Vehicles (DHSMV).
The Department and Section 320.27 of Florida’s state statutes require the franchise dealer to obtain a $25,000 Florida franchise motor vehicle dealer bond.
Licensed franchise dealers in Florida will also want to be familiar with Statute 320.642 which also bears on your profession. AmeriPro Surety Bonds will provide you both the new and renewal bond required of Florida franchise motor vehicle dealers.
Qualifying and the Premium
Our agency offers you the $25,000 Florida franchise motor vehicle dealer bond immediately after an application — which we’ll take from you over the phone — and for an annual premium of $250. Note that there is no credit check review by an underwriter for this surety bond; you are approved immediately upon completion of an application. There is also no application to sign.
Once the premium has been paid, the bond is issued to you and mailed to you by the following business day along with a Power of Attorney form. You’ll sign your bond as Principal and file it along with you POA form to your bond’s obligee.
Premium Prepayment Options
Our agency also offers you the option, of your choosing, to prepay your franchise motor vehicle dealer bond up to 3 years. Prepayment of the premium allows you a savings over annual renewals, besides lengthening the time between renewals.
The premium prepayment options and savings are as follows:
- If prepaid for 2 years, the premium is $450, a $50 savings;
- If prepaid for 3 years, the premium is $650, a $100 savings.
Florida Motor Vehicle Dealer Bond: The Purpose
The purpose of a Florida auto dealer franchise bond is to protect consumers from acts of fraud, theft, or any criminal activity committed by a dealer in connection with their business conduct.
This protection of the public extends to violations also committed by employees, managers, partners, and owners of the franchise dealership.
This surety bond, moreover, is also a financial guarantee for any violations of Section 320.27.
And it is a requirement of the FL DHSMV, which is the obligee for this bond, and a prerequisite for licensing.
Florida Motor Vehicle Dealer Bond: Duration
Your franchise dealer bond, regardless of when purchased, will expire on December 31st of that year.
According to the same laws, since bond coverage must always be continual, replacement bonds (if applicable to you) will need to have coverage on or before the cancellation date of the previous bond.
Becoming a Florida Franchise Motor Vehicle Dealer
If you are an applicant for a Florida motor vehicle franchise license you must:
- Have a Florida dealership location that is approved by the DHSMV;
- Obtain an FEIN number from the IRS and a Florida sales tax number;
- Take a pre-licensing course;
- Obtain fingerprinting and provide information about your criminal history, if applicable which must be filed electronically;
- Complete the application for a FL franchise dealer license and pay the $300 application fee;
- Provide a copy of the dealer development franchise agreement;
- Obtain the $25,000 surety bond required.
AmeriPro Surety Bonds
AmeriPro Surety Bonds is a surety bonds-only agency which provides auto dealer bonds throughout the country. Some such bonds are now available through us without a credit check inquiry. We are also working to become a leader for license and permit bonds. To that end, we provide surety bonds nationwide. Please call our agency today at:
Or, you may fill out the form below and an agent will contact you.