Quick Answer
It is possible to obtain a Florida auto dealer license without a traditional car lot. Although having a verified business address is still necessary, this does not mean having to buy or rent a large parking lot. A more inclusive entry point into the business for prospective dealers is made possible by the Florida Department of Highway Safety and Motor Vehicles (DHSMV) location requirements, which must be satisfied in order to obtain a Florida auto dealer license.
How to Get a Car Dealer License in Florida without a lot
When working for your Florida auto dealer license, finding a suitable lot may seem difficult. As it must adhere to the stringent rules of the Florida Department of Highway Safety and Motor Vehicles (DHSMV), choosing the proper location is essential.
On the other hand, setting up your business structure primarily entails paperwork. A big part of getting your Florida car dealer license is navigating the lot requirement, but don’t worry if you don’t have a lot yet – we can guide you through the procedure.
How to Get a Dealer License in Florida
A dealer license is necessary if you want to sell cars in Florida. Most people and companies selling vehicles for a profit must have it, which is governed by the Florida Department of Highway Safety and Motor Vehicles (DHSMV). To obtain your dealer license, adhere to the instructions provided.
Determine License Type
Selecting the license type that best meets your company’s needs is the first step in getting a dealer license in Florida. Florida offers several dealer license categories, each focusing on different facets of the automotive industry. Among these license varieties are:
Franchise Dealer License:
You must obtain a franchise dealer license if you intend to sell new vehicles by a written agreement with a distributor, importer, or manufacturer.
Franchise Service Facility License:
For franchise dealers that want to run service and repair facilities apart from their primary dealership locations.
Independent Dealer License:
You need an independent dealer license if your primary business is purchasing, selling, or trading in old cars.
Wholesale Dealer License:
License for Wholesale Dealer: This license is required to acquire, sell, or deal in vehicles as a wholesaler, usually in conjunction with other licensed dealers.
Vehicle Auction Dealer License
You need this license if you are a licensed dealer and want to hold motor vehicle and recreational vehicle auctions.
Salvage Vehicle Dealer License:
Licensing for salvage dealers who buy and sell destroyed or salvaged vehicles and their parts.
Mobile Home Dealer License:
If your company deals in the purchasing, selling, or trading of mobile homes, you must have a home dealer license.
Mobile Home Broker License:
A transferable home broker license is required for dealers who specialize in selling used mobile homes and represent owners when selling these houses.
Recreational Motor Vehicle Dealer License
You need a recreational motor vehicle dealer license if you want to buy, sell, or broker new recreational vehicles.
Recreational Used Motor Vehicle Dealer License:
Dealer License for Used Recreational Motor Vehicles: This license is only available to dealers in used recreational vehicles.
Attend the Required Pre-License Dealer Training Course
You must enroll in a specialized training program at an institution that the state has approved in order to obtain your dealer license in Florida. Before submitting an application for your request, you must finish this program within six months.
The school will issue you a certificate as proof once you have completed the course. A copy of this certificate must be included with your license application. In order to comply with all regulations and perform your duties effectively as a dealer in Florida, this course helps you acquire the information you need to know.
Determine the Legal Entity Structure
The next step in the process of getting a dealer license in Florida is deciding how you want to establish your business structure. Therefore, you must present evidence of your business registration and, if necessary, any fake name registrations with the Florida Division of Corporations.
According to the structure of your business, below is a breakdown of what you must do:
For Corporations
For corporations, you must submit copies of your corporate charter, meeting minutes listing your current executives, and your articles of incorporation if your company is structured as a corporation.
For Limited Liability Companies (LLCs)
Regarding Limited Liability Companies (LLCs), A copy of your operating agreement and articles of formation are required if your company is an LLC.
For Partnerships
You must include a copy of your partnership agreement if your company is conducted as a partnership.
May you also read: Can You Trade In A Car With Expired Registration
Obtain a Federal Employee Identification Number (FEIN)
If you have workers, you’ll need a Federal Employee Identification Number (FEIN) in order to apply for a dealer license in Florida. Use your Social Security number if you’re a lone proprietor with no workers. Just deliver documentation as needed, like a Florida driver’s license or a U.S. passport.
During the application process, this phase is essential for accurate business identification and tax compliance.
Secure a Business Location and Gain Approval
You will require a legitimate company location that complies with state regulations to obtain your dealer license in Florida. An inspector will come and look it over to make sure it complies with all the rules.
The Florida Administrative Code 15C-7.003 has these regulations, which we’ll go over in more depth below. This procedure is essential for obtaining your dealer license and ensures that your company location is up to code.
Obtain a FL Sales Tax Number
You must obtain a Florida sales tax number in order to continue with the application process for your Florida dealer license. All businesses in the state are required to have this.
You can obtain it by completing Form DR-1 and bringing it to a tax service center, or you can get it online from the Florida Department of Revenue. This step is essential for ensuring that your company complies with the tax laws of the state and is required to obtain your dealer license.
Purchase Garage Liability Insurance
Independent, wholesale, auction, and salvage dealers require garage liability insurance in order to apply for a Florida dealer license.
There are two options: acquire general liability and business motor insurance policies with the same coverage limits or file a certificate with at least $25,000 single limit liability coverage (covering bodily injury, property damage, and $10,000 personal injury protection).
To fulfill state criteria and move forward with your dealer license application, you must have this insurance.
Purchase a $25,000 Auto Dealer Bond.
You must obtain a $25,000 auto dealer bond to proceed with your application for a Florida dealer license. On the letterhead of the surety bond company, this bond must adhere to the state’s rules or use its identical phrasing.
Alternatively, you may substitute a $25,000 irrevocable line of credit from a bank recognized by the State of Florida. It’s crucial to fulfill this bonding condition if you want your dealer license application to move forward.
Install a Sign at a Place That Is Visible From the Roadway
Installing a visible sign for your company is required before completing your dealer license application in Florida. Your company name, your hours of operation, and the days you are open should all be displayed on this sign.
You must give the compliance coordinator a picture of the sign and its measurements to assure compliance. This stage, which complies with the laws and license requirements of the state, makes sure that your dealership is correctly identified and makes it simple for potential clients to find your establishment.
May you also read: Auto Transport Companies To Avoid [Ultimate Guide 2023]
Complete Fingerprinting
All dealership officers must submit to digital fingerprinting through an FDLE-approved source as part of the Florida dealer license application process. You must include documentation to prove this with your application, such as the receipt the supplier provides.
You must include information on the results of any officers’ felony or misdemeanor convictions in your application if they have any. This step is essential to comply with state licensing laws and background checks for all dealership personnel.
Submit the Application and Documents
Fill out HSMV Form 86056, gather the required paperwork, and pay the fees necessary to apply for a dealer’s license in Florida.
This package should be delivered to your local office. Proof of completing a training course, a bond or letter of credit, insurance, business registration papers, location proof, photos of your dealership, officer fingerprints, any necessary criminal records, an ID, evidence of a business inspection, and an application fee of $300 or $340, depending on the type of license, are all required. The application process for a Florida dealer license must include this stage.
How Long Does it Take to Get a Dealer License in Florida?
Although the process for getting a Florida dealer license is straightforward, it can take some time. You should hear back two to three weeks after submitting your application and meeting all the conditions. If they accept your application, you will receive your Florida Used Car Dealer License by mail.
As you start your career in the car-selling industry, it is an exciting time. Don’t worry, though, if your application is rejected. Within three weeks, you’ll receive a letter outlining the reasons. In any case, this waiting period is an essential phase on your road to obtaining a Florida dealer license.
Florida Dealer License Requirements
Choosing the appropriate license type, participating in pre-license training, registering your business, obtaining a Federal Employee Identification Number, getting garage liability insurance or a line of credit, purchasing an auto dealer bond, displaying a visible business sign, completing electronic fingerprinting for all officers, and submitting a thorough application package with the required documentation are all important steps in obtaining a dealer license in Florida.
You must fulfill these requirements to assure compliance with Florida’s laws and move on with getting your dealer license, which will allow you to work in the state’s auto sales business.
What is a suitable Location for a Florida Dealer License?
One of the most important steps is choosing a good location for your Florida dealer license. It needs to be suitable for customer transactions, provide a permanent structure with at least 100 square feet of interior space, and comply with local zoning laws.
The site you’ve selected must adhere to state zoning regulations and offer a safe, presentable area for parking and business activities. This choice lays the groundwork for the legitimacy of your dealership and its adherence to legal obligations.
How Much is a Dealer License in Florida
Depending on the kind of license you’re looking for, the price of a dealer license in Florida can change. The application fee typically costs between $300 and $340.
There are additional costs to consider, such as the price of the necessary training program, insurance premiums, the auto dealer bond, and any related administrative costs. When applying for your dealer license in Florida, it’s crucial to prepare a realistic budget and be aware of all connected charges.
Do you need a Florida Dealers License?
“The likelihood is that you do require a Florida dealer license if you’re debating this. If you want to sell cars for a profit, you need this license. The requirement isn’t exclusively based on how many cars you sell annually because this figure is only meant to be used as a guideline, not a strict cap. A Florida Dealer License is required in order to conduct business legally.
Your dealership does require a specific location, but it doesn’t have to be a large vehicle lot. It’ll do to have a small office with two parking spots or a lockable warehouse that can hold two to four cars. With the same privileges as a larger dealership, your license allows you to participate in wholesale and retail operations throughout the
How to Become a Car Dealer in Florida
To become a car dealer in Florida, you must first choose your license type based on your business structure, go to a pre-license dealer training course, register your company, get a Federal Employee Identification Number (FEIN), buy garage liability insurance or a line of credit, install an obvious business sign, finish electronic fingerprinting for all officers, and then submit a thorough application package with the required documentation.
You must fulfill these requirements to assure compliance with Florida’s laws and move on with getting your dealer license, which will allow you to work in the state’s auto sales business.
How much does it cost to become a car dealer in Florida?
Depending on the type of dealer license you want and other expenditures, being a car dealer in Florida can cost you various amounts. Training, business registration, insurance, bonds, and the license application fee, ranging from $300 to $340, are likely expenses.
Remember that there will be recurring expenses like insurance premiums and renewals. In light of this, the overall cost may vary from a few thousand dollars to more, depending on your circumstances. When opening an auto shop in Florida, be sure to plan your budget thoroughly.
How do I get an independent car dealer license in Florida?
Attend training, register your business, obtain insurance or a credit line, buy a $25,000 bond, establish a location, complete fingerprints, and submit your application with fees for approval in order to become an independent vehicle dealer in Florida.
How to open a car dealership in florida?
Attending pre-license training, registering your business, obtaining insurance or a credit line, purchasing a $25,000 bond, establishing a business location with the appropriate signage, completing officer fingerprinting, and submitting your application with fees to the regional office for approval are all requirements to start a car dealership in Florida.
How to buy cars at auction in florida?
Register, evaluate autos, establish a budget, bid aggressively, and finish paperwork right away after winning a bid if you want to buy cars at Florida auctions.
How many cars can you sell in a year in Florida without a dealers license?
Without a dealer’s license, you are permitted to sell three cars in Florida in a calendar year. To continue selling vehicles lawfully after exceeding this cap, you must get a dealer’s license. To prevent legal problems and guarantee compliance with Florida’s laws governing automobile sales, it is essential to stick to this restriction.
Final Remarks
Follow these steps to become a vehicle dealer in Florida: Choose your license type, go to a pre-license training session, register your company, get a Federal Employee Identification Number (FEIN), get garage liability insurance or a line of credit, put up a visible business sign, have all officers submit electronic fingerprints, and offer a thorough application with all required paperwork.
The application fee is between $300 and $340, and you should also account for extra charges, including administrative costs, insurance, and training. Spend your money carefully and look into opportunities in the vehicle sales sector, such as working with organizations like NexGen auto Transport and engaging in car shipping Florida services. To estimate costs precisely, make use of resources like the car shipping cost calculator.
