Florida used car dealer license requirements (2025)

1. Who regulates auto dealers in Florida?

In Florida, motor vehicle dealers are regulated by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), Bureau of Dealer Services. This bureau issues and renews licenses for independent, wholesale, auction, salvage, mobile home, and recreational vehicle dealers.

Official FLHSMV dealer portal:
FLHSMV – Motor Vehicle, RV & Mobile Home Dealer & Broker Licenses

2. Main Florida dealer license types

Florida recognizes several dealer license categories under section 320.27, Florida Statutes. Common examples include:

• Vehicle Independent (VI) dealer: Buys, sells, or deals in used motor vehicles at retail.
• Vehicle Wholesale (VW) dealer: Buys, sells, or deals in vehicles only with other licensed dealers or at wholesale auctions.
• Vehicle Auction (VA) dealer: Conducts auctions selling vehicles, usually to licensed dealers.
• Salvage (SD) dealer: Acquires salvaged or wrecked vehicles for resale or parts.

For a typical independent used car lot open to the public, you are usually applying for the VI (independent) license.

Official FLHSMV license type descriptions:
FLHSMV – Types of Licenses Available

3. Location, office, and sign requirements

Before applying, you must have a permanent business location that meets Florida’s standards, including:

• A physical business address in Florida (no P.O. boxes).
• Zoning approval from the local city or county confirming that motor vehicle sales are permitted on the property.
• A permanent, enclosed office with basic business equipment and secure storage for records.
• A clearly defined display space for vehicles accessible to the public.
• A permanent business sign displaying the dealership’s licensed name, visible from the street and meeting FLHSMV guidelines.

A FLHSMV compliance examiner typically inspects the location as part of the approval process to confirm that these requirements are met.

4. Core prerequisites for a Florida independent dealer license

For a Florida independent (VI) dealer, expect to satisfy the following prerequisites before submitting form HSMV 86056:

4.1 Business entity and tax registration

• Register your business entity (e.g., LLC or corporation) with the Florida Division of Corporations.
• Obtain a Federal Employer Identification Number (FEIN).
• Register with the Florida Department of Revenue for sales tax so you can collect and remit sales tax on vehicle sales.

4.2 Pre-licensing dealer training course

• Complete an FLHSMV-approved pre-licensing dealer training course.
• Obtain a certificate of completion from the approved school and include it with your application.

4.3 Garage liability insurance

• Obtain a garage liability policy that meets Florida’s minimum coverage requirements for bodily injury, property damage, and personal injury protection.
• Have your insurance agent issue proof of coverage listing the dealership.

4.4 Florida dealer surety bond

• Secure a $25,000 motor vehicle dealer surety bond on the FLHSMV bond form (HSMV 86020) or an approved letter of credit.
• The bond must name the dealership exactly as it appears on your license application.

4.5 Electronic fingerprints (Livescan)

• Each owner, partner, officer, or director listed on the application must submit electronic fingerprints through an FDLE-approved Livescan provider using the correct ORI for auto dealer licensing.
• The Livescan vendor transmits fingerprints to FDLE; you typically attach a copy of the receipt or confirmation with your application as proof.

5. Application forms, fees, and submission

Florida uses a standard application packet for motor vehicle, mobile home, and recreational vehicle dealers. The main items for a new independent dealer (VI) license include:

• Form HSMV 86056 – Application for a License as a Motor Vehicle, Mobile Home or Recreational Vehicle Dealer.
• Application fee – Currently $300 for each main location (verify the current amount on the official FLHSMV site).
• Surety bond – Original $25,000 dealer bond on form HSMV 86020 or approved letter of credit.
• Proof of location – Copy of lease agreement or proof of property ownership and zoning approval.
• Pre-licensing course certificate for each required person.
• Proof of garage liability insurance.
• Electronic fingerprint receipts for all owners/officers.

You submit the completed application packet and fee to the FLHSMV Division of Motorist Services regional office responsible for your dealership’s location. A compliance examiner will review the application and schedule any required inspection.

Official FLHSMV forms and resources:
FLHSMV – Dealer Forms and Resources (HSMV 86056, 86020, and related forms)

6. Typical step-by-step process for a Florida independent dealer

1. Register your business entity in Florida and obtain your FEIN.
2. Secure a properly zoned business location and prepare your office, display area, and signage.
3. Complete an FLHSMV-approved pre-licensing dealer training course.
4. Obtain garage liability insurance that meets Florida’s minimum coverage requirements.
5. Purchase a $25,000 motor vehicle dealer surety bond on the required FLHSMV form.
6. Submit electronic fingerprints for all required individuals via an FDLE-approved Livescan provider and keep the receipts.
7. Complete form HSMV 86056 and assemble all supporting documents.
8. Submit your application packet and fee to the correct FLHSMV regional office.
9. Host the FLHSMV location inspection when scheduled and respond to any follow-up requests.
10. Once approved, receive your dealer license credentials and instructions for ordering dealer license plates.

7. Ongoing compliance and renewals in Florida

After your independent dealer license is issued, Florida dealers must:

• Renew the dealer license, bond, and insurance on schedule.
• Maintain accurate deal records, title work, and odometer disclosures.
• Comply with Florida dealer advertising rules and federal used car regulations.
• Notify FLHSMV promptly of changes in ownership, location, or business name, using the appropriate modification forms.

For detailed compliance questions, review the FLHSMV dealer FAQs and the relevant sections of the Florida Statutes.

8. Official Florida resources

• FLHSMV – Motor Vehicle, RV & Mobile Home Dealer & Broker Licenses
• FLHSMV – Dealer Forms & Resources (HSMV 86056, 86020, and more)
• FLHSMV – Types of Licenses Available
• FLHSMV – Dealer FAQs