Florida Motor Vehicle Dealer Bond
Overview
Florida ties every motor vehicle dealer license to an annual surety bond, and the requirement is written directly into the licensing statute. Section 320.27(10), Florida Statutes, requires that annually, before a dealer license is issued or renewed, the applicant deliver a $25,000 surety bond or irrevocable letter of credit to the Department of Highway Safety and Motor Vehicles. The bond runs to the state and covers the license period, so it must be refreshed with each renewal cycle — a lapsed bond means no license.
Who Needs This Bond?
Anyone applying for or renewing a Florida motor vehicle dealer license under section 320.27 must file this bond: franchised new-car dealers, independent used-car dealers, wholesale dealers, and auction dealers. The statute makes the bond a condition of licensure itself, so the requirement follows the license rather than the size of the operation — a single-lot independent dealer files the same $25,000 bond as a multi-franchise store. If FLHSMV has told you a surety bond is part of your dealer application packet, this is that bond.
What is this Bond For?
The bond is conditioned on the dealer complying with the conditions of any written contract made in connection with the sale or exchange of a motor vehicle and not violating chapter 320's dealer provisions. Under section 320.27(10)(b), any person who suffers a loss because the dealer breached those conditions can sue on the bond and recover against the surety. In practice, that covers harms like failing to deliver good title, breaking a sales contract, or collecting payment without delivering the vehicle.
When is it Required?
The bond must be in place annually, before the license is issued — section 320.27(10)(a) says delivery of the bond or letter of credit to the department happens before any license shall be issued or renewed. Plan to have the executed bond in hand when you submit your original application to FLHSMV, and keep a current bond on file every year at renewal. Because the requirement is annual, most dealers simply keep a continuous bond that renews alongside the license.
Where Does it Apply?
This is a statewide Florida requirement administered by the Department of Highway Safety and Motor Vehicles, which licenses dealers under chapter 320. It applies at every licensed dealer location in Florida regardless of county or city, because the obligation comes from the Florida Statutes rather than local ordinance. The bond is filed with FLHSMV as part of the dealer license application or renewal package.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Florida dealer bond is ready to file with FLHSMV alongside your license application as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement stated on this page is cited to the Florida Statutes in the Official Sources section below — so you can verify the rules yourself before you buy. The fully online purchase flow gets your executed bond to you fast enough to keep your FLHSMV licensing timeline on track.
Official Sources
The requirements described on this page are verified against the official sources below.
- Annual $25,000 surety bond or irrevocable letter of credit required before dealer license issuance or renewal; bond conditions and right of action for persons suffering loss: Florida Statutes §320.27(10) (verified July 16, 2026)