How to Get a Car Dealer License in Florida

What a car dealer license is and who needs one

A car dealer license in Florida is a permit from the Department of Highway Safety and Motor Vehicles (DHSMV) that allows you to buy and sell vehicles as a business. You need one if you plan to sell more than two vehicles in a 12-month period, whether you own a lot, operate from home, or sell online. The license covers used cars, new cars, motorcycles, and RVs — each type may have slightly different requirements.

If you only sell your own personal vehicles occasionally, you do not need a dealer license. But the moment you start buying inventory to resell, or you cross that two-vehicle threshold, Florida law requires you to be licensed. Operating without one can result in fines, criminal charges, and civil penalties.

Key Takeaways

You must obtain a dealer license from the Florida DHSMV before you sell more than two vehicles in a 12-month period, regardless of where you operate from.
The process requires a physical business location, a surety bond (typically $25,000 to $50,000 depending on dealer type), and proof of ownership or lease of that location.
You will need to pass a background check and provide personal financial statements, and some dealer types require a manager with specific training or certification.
The DHSMV processes applications within 30 to 45 days if your paperwork is complete, but incomplete applications can delay approval by weeks or months.
Your license must be renewed every two years, and you are responsible for maintaining compliance with inventory, record-keeping, and consumer protection laws throughout that period.

The physical location requirement and what counts as a business address

Florida requires you to have a permanent, physical business location before you can get a dealer license. This cannot be a P.O. box or a virtual office. The address must be a real place where customers can find you, where you keep records, and where you conduct business — typically a lot, a storefront, or a garage.

You must own or lease this location. If you lease, bring a copy of your lease agreement to the DHSMV when you explore. If you own the property, bring a deed or title. The address you list on your process is the one the DHSMV will inspect, so make sure it is accurate and that you have legal right to use it for a car dealership. Some landlords or homeowner associations restrict commercial vehicle sales, so verify that before you commit to a location.

The location does not have to be large or fancy. A small lot with a modest office works. What matters is that it is permanent, that you control it, and that it is zoned or permitted for vehicle sales in your city or county.

The surety bond and what it protects

A surety bond is a financial may provide that protects customers if you break the law or fail to honor your obligations. The DHSMV requires all Florida car dealers to carry one. The bond amount depends on what you are selling: used car dealers typically need $25,000, new car dealers need $50,000, and other dealer types fall in between. You purchase the bond from a surety company (an insurance-like firm), not from the state.

The surety company charges you a premium — usually 2 to 5 percent of the bond amount per year — so a $25,000 bond might cost you $500 to $1,250 annually. The surety company investigates you before issuing the bond, so you will need to provide personal financial information and pass a background check. If you have recent bankruptcies, fraud convictions, or serious credit problems, some surety companies will decline to bond you, which blocks your path to a license.

Once you have the bond, you submit the original bond document to the DHSMV as part of your process. The bond stays in force as long as your license is active. If you let it lapse, your license becomes invalid.

Personal financial statements and background checks

The DHSMV requires you to submit a personal financial statement showing your assets, liabilities, and net worth. This is not a credit check — it is a snapshot of your financial health. You fill out the form yourself, listing bank accounts, real estate, vehicles, loans, and other obligations. The state uses this to assess whether you have the financial stability to operate a dealership responsibly.

You will also undergo a background check. The DHSMV looks for criminal convictions, fraud, dishonesty, or violations of motor vehicle laws. Certain convictions — particularly felonies involving fraud, theft, or dishonesty — can disqualify you permanently or require a waiting period. Misdemeanors and traffic violations are evaluated case by case. If you have a criminal history, contact the DHSMV before you explore to understand whether you are may be able to access.

Both the financial statement and background check are part of the standard process package. Bring originals or certified copies of any documents the DHSMV requests, and be honest about your history. Falsifying information on your process is grounds for denial and potential criminal charges.

Manager certification and training requirements

If you are opening a used car dealership, you must designate a dealer manager — either yourself or an employee — who has completed the required training. The manager must pass the DHSMV's dealer manager exam, which covers Florida motor vehicle laws, consumer protection rules, and ethical sales practices. You can study for the exam using the DHSMV's official study guide, which is free and available on their website.

The exam is offered at DHSMV service centers and testing facilities throughout Florida. There is a fee to take the exam (typically $50 to $100, though this varies). You do not have to pass on your first try, but you must pass before the DHSMV will issue your dealer license. Some people study on their own; others take a prep course through a vocational school or online provider.

New car dealers, motorcycle dealers, and RV dealers have different or no manager certification requirements, so check the specific rules for your dealer type on the DHSMV website before you invest time in studying.

The process process and what to submit

You submit your process to the DHSMV in person at a service center or by mail. The process form is the process for Motor Vehicle Dealer License (Form HSMV 83039). Along with the form, you must include:

Proof of your physical business location (lease or deed)
The original surety bond document
Your personal financial statement
A copy of your manager certification (if required for your dealer type)
A government-issued photo ID
The process fee (typically $150 to $300, depending on dealer type)

Missing or incomplete paperwork is the most common reason applications are delayed. Before you submit, make a checklist and verify that every document is included and legible. If the DHSMV finds something missing, they will send you a notice asking you to provide it within a set timeframe — usually 10 to 15 days. If you do not respond, your process is denied and you have to start over.

Processing typically takes 30 to 45 days if everything is in order. The DHSMV may also conduct an inspection of your business location during this time. Once approved, you receive your dealer license, which is valid for two years.

Renewal and ongoing compliance

Your dealer license expires every two years. You must renew it before the expiration date to continue operating legally. The renewal process is simpler than the initial process — you submit a renewal form, proof that your surety bond is still active, and the renewal fee. You do not have to reapply from scratch or retake the manager exam.

While your license is active, you are required to follow Florida's motor vehicle dealer laws. This means keeping accurate records of every vehicle you buy and sell, disclosing the vehicle's history and condition to buyers, honoring warranty obligations, and handling customer complaints fairly. The DHSMV can audit your records at any time, and violations can result in fines, license suspension, or revocation.

If your business location changes, you must notify the DHSMV and update your license. If your surety bond lapses, your license becomes invalid when ready. Staying compliant is not just about following the rules — it protects your business from liability and keeps your license active.

Frequently Asked Questions

What if I do not have a permanent location yet?

You cannot get a dealer license without one. find your location first — whether by lease or purchase — before you explore. Once you have the address and legal right to use it, you can move forward with the rest of the process.

Can I get a dealer license if I have a felony conviction?

It depends on the type of felony and how long ago it occurred. Convictions involving fraud, theft, or dishonesty are serious obstacles. Contact the DHSMV directly to discuss your specific situation before you invest time and money in the process process.

How much does the whole process cost?

Costs vary, but expect roughly $1,000 to $2,500 total: surety bond premium ($500–$1,250 annually), process fee ($150–$300), manager exam fee ($50–$100), and any study materials. The surety bond is the largest ongoing expense.

What happens if I sell three cars without a license?

You are breaking Florida law. The DHSMV can fine you, and you may face criminal charges. Customers can also sue you for operating illegally. Get licensed before you sell your third vehicle in a 12-month period.

Do I need a separate license for each location?

Yes. If you operate from multiple locations, you need a separate dealer license for each one, with its own surety bond and manager certification.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.