Posted on Mar 4 | by William Stephen
The Department of Highway Safety and Motor Vehicles (DHSMV) provides licenses to any dealer who sells vehicles to other dealers of Florida or the public of Florida. Becoming a recreational vehicle, mobile home, or motor vehicle dealer in Florida requires a lot of documentation and paperwork. Once the dealers have got their license, they must keep a record of all the mandatory details about each vehicle.
The story doesn’t end here; the dealer in the driver's seat is required to renew the auto dealer license every year. So if you want to learn all the ropes about renewing the auto dealer license in Florida, fortunately, you're at the right place as we will share a mind of information with you!
As May 1 is approaching, the Florida auto dealers are wondering what they need to do before the deadline. However, there is no rocket science in it. We will break down all the steps before you to help you cut out your work.
First and foremost, you’ve to know when and who is entitled to renew their license before April 30. There are 2 different license renewal deadlines for 6 different types of Florida auto dealers.
Deadline; December 30
This deadline for license renewal applies to:
Deadline; April 30
Here are the 4 types of Florida automobile dealers who are required to comply with this license renewal deadline.
However, dealers with other vehicles such as automobiles and mobile homes have their license renewal deadline of September 30.
Auto dealer license renewal steps are almost the same for all kinds of licenses. Here is a simple step-by-step guide for you.
Step 1: Complete the Florida auto dealer license renewal form
To start the license renewal process, almost all types of licensees must fill out the HSMV 86720 renewal application form. It also includes providing proof of your identification along with basic information regarding your dealership.
Step 2: Submit a copy of your insurance policy
Another important document you need to submit in addition to your license renewal form is the copies of your garage liability insurance.
Your insurance policy must include single limit liability coverage of $25,000, including property damage protection and bodily injury, with $10,000 for protection against personal injury.
Alternatively, general liability insurance with the same amount is also a substitute. You require the insurance agent to sign the required policy in both cases.
However, the law exempts salvage motor vehicle dealers from this requirement.
Step 3: Provide the business certificate copy
The Florida Division of Corporations provides the business certification. You have to collect your business certificate copy that must include the fictitious name of your business and the current registration of your business at Division.
Step 4: Provide proof of continuing education
Florida's licensed dealer training school provides a dealer license continuing education course. The auto dealer in Florida is required to submit this course completion certificate for license renewal.
However, the auto dealers with independent motor vehicles also can complete a pre-licensing dealer training seminar.
Step 5: Pay your yearly or biennial renewal fee
For a one-year renewal, all the licensees are required to pay the renewal fee of $75, while $150 is the biennial renewal fee.
Delay of submitting the application and necessary documents for the primary location of the dealer beyond April 30 by the DHSMV leads to a delinquent fee of $100 on top of a basic renewal fee of $75.
The delinquent period lasts for 45 days after the deadline. If the dealer misses this period, too, then he's required to go back to the board and start the licensing process again from scratch instead of license renewal.
Step 6: Renew your Florida auto dealer bond
To ensure compliance with Title XXIII, Chapter 319 and 320 of the Florida Statutes, the Florida auto dealers are required to obtain a surety bond of $25,000 upon getting their license. This bond serves as a source of protection for the public and state of Florida if a dealer tries to cause damage to anyone or violates the statutes.
A bond premium which is a fraction of the whole amount of bond, is required to be paid by the auto dealer to get bonded. The exact cost of a surety bond depends on several factors.
Here are the appropriate surety bond forms required for the different applicants of automobile dealer license
The dealers with supplementation locations are needed to submit the exact document for their supplemental location as they submitted for their primary location.
It includes the same surety bond and a copy of the insurance policy with an additional Florida dealer license renewal form. Further, every supplemental location requires an additional yearly renewal fee of $50, or $100 as a biennial renewal fee.
A percentage of the $25,000 bond amount is charged as a Florida auto dealer bond. This percentage includes both the estimated financial stability and the sureties when the dealer applies for their bond.
A pay rate of 1% to 3% of the total bond amount is usually applied to the dealers with a high credit score. The dealers with low credit scores can also get bonded. But the rates are slightly higher under lousy credit programs.
To begin your license renewal process, follow the above-mentioned simple steps. Use HSMV 86720 for Renewal Application and HSMV 82260 for Lien Satisfaction. In addition, you can keep track of lien applications with Form HSMV 82139.
We have discussed all the mandatory details for you. If you still have any queries or know more about auto dealer licenses in Florida, feel free to call us!
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