In Florida, motor vehicle dealers are licensed and regulated by the Division of Motor Vehicles under Section 320.27 Florida Statutes.

The Law

Florida law states that any person, firm partnership, or corporation that buys, sells, offers for sale, displays for sale or deals in three or more motor vehicles in any 12-month period is presumed to be a motor vehicle dealer and must have an appropriate license issued by the State.

License Types

There are four classes of licenses issued to motor vehicle dealers. They are:

Independent Dealer--for a person dealing in used motor vehicles only. This license permits the licensee to transact business at retail or wholesale.

Franchise Dealer--allows the licensee to sell new motor vehicles under an agreement with a manufacturer. This license also permits the licensee to sell used motor vehicles.

Wholesale Dealer--licensees may only buy from, sell to, and deal at wholesale with other licensed dealers.

Auctions--are licensed to sell, on behalf of licensed dealers, through the bid process. Auctions may not sell retail.

Application

Before going into the business of selling motor vehicles, a person must submit a completed application, with required documentation and fees. License applications may be obtained from any Division of Motor Vehicles' regional office.

General DMV Requirements

Approval of business location by a DMV representative. Completed application form. Fee of $300 for each main location. $25,000 surety bond or letter of credit. Garage liability insurance. Copy of lease for location or proof of ownership. Dealer training seminar certificate. Registration of fictitious trade name. Copy of corporate papers. Sales tax number. Federal employer identification number. Fingerprints and applicable fees. ($53.25 per person). Note: Franchise dealers must meet certain additional requirements. Failure To Obtain A License

Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. Such person will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act, subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.

More Information

If you have questions about application procedures and licensing requirements, contact the DMV regional office.

To receive your motor vehicle dealer license, you must complete the application, also available at any regional office of the Division of Motor Vehicles. You'll need to provide required documentation and pay any applicable fees.

Make sure to return the form to the regional office that serves your locale; applications sent to Tallahassee that pertain to other regions will be sent to the appropriate regional office and could delay processing time.

Requirements to Obtain a Florida Motor Vehicle Dealer License Completed application $25,000 bond or letter of credit Garage liability insurance Copy of business lease or proof of ownership of location Approval (by DMV representative) of dealership location Certificate proving completed dealer training seminar Business documents (copies of corporate agreement, fictitious trade name registration, sales tax number, federal employee ID number) Fingerprints Note: Franchise dealers may have additional requirements. Please check with any Division of Motor Vehicles regional office for details.

Fees $300 per approved location $47 (per person) for fingerprints and processing License renewals Dealer licenses must be renewed annually, at a fee of $75. All independent dealers must provide proof of at least eight hours of continuing dealer training upon renewal. This is in accordance with Florida Statute 320.27 (4)(a), which reads:

"Each independent dealer shall certify that the dealer principal (owner, partner, officer of the corporation, or director) has completed eight hours of continuing education prior to filing the renewal forms with the department. Such certification shall be filed once every two years commencing with the 2006 renewal period. The continuing education shall include at least two hours of legal or legislative issues, one hour of department issues, and five hours of relevant motor vehicle industry topics." Continuing (and initial) dealer training can be found at the following locations:

Florida Independent Automobile Dealers Association: (888) 587-0004 Advanced Dealer Training Institute: (888) 791-9511 Florida Auto Dealer School: (866) 884-0549 Find more information on approved dealer training sites at any {E http://www.hsmv.state.fl.us/offices/} regional office} of the Division of Motor Vehicles}.

Mobile Home Dealer Two types of licenses are issued to mobile home dealers:

Mobile home dealer: allows you to deal in new and used mobile homes, and to do business at retail or wholesale prices.

Mobile home broker: allows you to deal in used mobile homes only, at either retail or wholesale prices.

Requirements to Obtain a Florida Mobile Home Dealer License Completed application $25,000 bond or letter of credit Copy of business lease or proof of ownership for location Approval (by DMV representative) of dealership location Certificate proving completed dealer training seminar Business documents (copies of corporate agreement, fictitious trade name registration, sales tax number, federal employee ID number Fingerprints Fees $300 per approved location $47 (per person) for fingerprints and processing $40 annual fee for Mobile Home and Recreational Vehicle Trust Fund Recreational Vehicle Dealer Only one type of license is issued for recreational vehicle dealers.

Requirements to Obtain a Florida Recreational Vehicle Dealer License Completed application $10,000 bond Copy of business lease for the location, or proof of ownership Approval (by DMV representative) of dealership location Certificate proving completed dealer training seminar Business documents (copies of corporate agreement, fictitious trade name registration, sales tax number, federal employee ID number Fingerprints Fees $300 per approved location $47 (per person) for fingerprints and processing $40 annual fee for Mobile Home and Recreational Vehicle Trust Fund Renewal of Mobile Home and Recreational Vehicle Dealer Licenses Licenses must be renewed annually. The fee is $140. Return your renewal form to any regional office of the Division of Motor Vehicles.

Penalties No matter your choice of vehicle, if you fail to obtain a dealer license, you could be charged with a second-degree misdemeanor, resulting in six months in jail or a fine of $500. You could also be deemed in violation of Florida's Deceptive and Unfair Trade Practices Act, resulting in large fines or a permanent injunction from a circuit court.

Ensure Compliance For a comprehensive look at Florida's dealer regulations and procedures, download the 80-page Florida Motor Vehicle, Mobile Home, and Recreational Vehicle Dealers' Handbook, available for free in PDF format.

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