If you are thinking about starting a business in Florida like an auto dealership, you will need to know and adhere to certain requirements, and the steps that you will need to take in order to obtain a motor vehicle dealer bond. There are numerous requirements that you will need to make sure you meet so you can be sure you will apply for and receive the right type of surety bond for your business.
For business owners who need assistance with this process, they can contact a reputable agency like Bonds Express.
By reading this guide, you will learn the most important factors that you will need to be aware of when you are trying to obtain a Florida Motor Vehicle Dealer Bond. This information packed guide will show you what you need to know so you can go through the process as effortlessly as possible.
Dealer Bonds Are Required
According to the Department of Highway Safety and Motor Vehicles in Florida, there are several different types of licenses for auto dealers in Florida. However, regardless of the type of license you are applying for, it is mandatory you have dealer bond insurance in place as well. Although this is one of the most consistent factors in the process, there are other specifics that can vary.
You will also need to know that depending on the type of license you want to obtain, the amount you pay for a dealer bond will vary. For example, if you own an auto dealership, you will need to have a bond of $25,000 as of this writing. However, if you own a RV dealership, you will only need a $10,000 dealer bond as of this writing.
In addition, you can choose to open a line of credit in the same amount as the bond, in contrast to a traditional dealer bond insurance. This option is not as common, and in fact, it can place a heavier burden on the owner. For some auto dealers with good credit, this may be an option worth pursuing.
In the state of Florida, motor vehicle dealer licenses have to be renewed every year. The type of license you have will be a factor in when it must be renewed. You should check with the DMV to make sure you know the renewal deadline for your specific license.
For example, a used car dealer will have a different bond and license from a franchise dealer. As a result, their licenses and bonds will expire on different dates. It is important to keep the date in mind because failing to renew the license and bond is considered a crime. You could face penalties and even delays in the processing of your license if you miss your renewal date.
The dealer bond insurance is one of the most important criteria for licensure in Florida. However, it is not the only criteria. Auto dealers will need to be fingerprinted, have garage liability insurance with the right minimums, a Federal employer ID and undergo training prior to getting a license.
These are the requirements that you will need to take into consideration if you want to apply for a Florida Motor Vehicle Dealer Bond. Bonds Express is a surety bond and insurance provider that can assist you with all of your motor vehicle bond needs.