Used Motor Vehicle Dealer Bond

Florida Used Motor Vehicle Dealer Bond

$25,000 used / independent dealer surety

Independent and used motor vehicle dealers file a $25,000 surety bond or irrevocable letter of credit with FLHSMV on Form HSMV 86020 under Fla. Stat. § 320.27(10)(a).

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Overview

What is this bond?

The Florida used motor vehicle dealer bond is the $25,000 surety independent and used dealers file with FLHSMV under Fla. Stat. § 320.27(10)(a) on Form HSMV 86020.

Surety Obligation Overview

What Does This Bond Guarantee?

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Florida Department of Highway Safety and Motor Vehicles
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Independent motor vehicle dealers under Fla. Stat. § 320.27(1)(c)2 — not franchised dealers.

Who Is Required to File
  • Independent motor vehicle dealers (VI license) under § 320.27(1)(c)2
  • Used car dealers applying for or renewing FLHSMV dealer license
  • Wholesale and auction dealers where § 320.27(10) applies
Requirements

What You Need to Apply

FLHSMV requires the $25,000 surety on Form HSMV 86020 for independent/used dealer licenses.

Required Documentation
  1. Completed HSMV 86020
  2. Dealer license application through FLHSMV
  3. Business location and insurance as required for VI license
Filing

How this filing works

  1. 01

    Confirm used/independent class

    You hold or are applying for an independent (VI) dealer license — not franchise (VF).

  2. 02

    Apply for the bond

    Use Apply on this page for the Florida USED Motor Vehicle Dealer Propeller class.

  3. 03

    File with FLHSMV

    Submit the executed bond with your dealer license application or renewal. Independent, wholesale, and auction licenses expire April 30 (§ 320.27(4)(a)).

FAQ

Frequently Asked Questions

How much is the used dealer bond?

Fla. Stat. § 320.27(10)(a) requires $25,000 for motor vehicle dealers, including independent/used dealers.

Is used different from franchise?

The penal sum is the same $25,000, but independent dealers are licensed under § 320.27(1)(c)2 and use the USED Propeller class. License renewal dates also differ (April 30 vs December 31).

What form does FLHSMV use?

Form HSMV 86020.

Authority Resources

Florida Department of Highway Safety and Motor Vehicles (FLHSMV)

flhsmv.gov

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