Florida’s motor vehicle dealer licensing process has a hard stop built into it: before FLHSMV processes your application, you need a $25,000 surety bond on file. No bond, no license. It is one of the most consistent requirements in Florida dealer licensing, and in 2026 the rules have not changed — but the cost and consequences are worth understanding before you apply.
What Is the Florida Motor Vehicle Dealer Bond?
The Florida motor vehicle dealer bond is a $25,000 surety bond required by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) under Florida Statute 320.27. It is sometimes called the HSMV 86020 bond, named after the form used to submit it with your dealer license application.
The bond is a three-party agreement between you (the dealer and principal), a licensed surety company like Ashton Agency, and FLHSMV and Florida consumers as the obligees. If you violate Florida dealer laws — misrepresenting a vehicle’s history, failing to transfer a title, collecting fees without delivering a vehicle — a harmed consumer or FLHSMV can file a claim against your bond. The surety pays valid claims up to $25,000. You are then responsible for reimbursing the surety.
Who Needs the Florida Motor Vehicle Dealer Bond?
The $25,000 bond is required for used motor vehicle dealers, new motor vehicle dealers (franchised), wholesale motor vehicle dealers, and motor vehicle auction facilities. If you operate more than one dealer location in Florida, each location requires its own license and its own bond.
How Much Does the Florida Dealer Bond Cost?
The bond amount is $25,000, but that is not what you pay. You pay an annual premium — typically 1% to 5% of the bond amount — based on your personal credit and business history.
| Credit Profile | Estimated Annual Premium |
|---|---|
| Good (700+) | $250 – $375 |
| Fair (600–700) | $375 – $625 |
| Challenged (below 600) | $625 – $1,250 |
Most new dealers with average credit pay somewhere in the $375–$500 range for their first year. The premium renews annually and may decrease as your business history strengthens.
How to Get Your Florida Motor Vehicle Dealer Bond
Getting bonded is a straightforward process:
- Contact a licensed Florida surety bond agency like Ashton Agency — not a general insurance provider
- Complete a brief application — basic business and personal information, plus a soft credit check in most cases
- Receive your bond certificate — typically issued within 24 to 48 hours
- Submit HSMV form 86020 with your dealer license application to FLHSMV
The bond must be in place before FLHSMV will process your application. Do not wait until you are ready to open — get the bond first, then submit your full dealer license package. If you are still working through the licensing process, our Florida auto dealer license guide covers every step from dealer training to the FLHSMV inspection.
What Happens If Your Bond Lapses?
If your surety bond is not renewed before it expires, your dealer license is at risk. FLHSMV requires continuous bond coverage for the entire period your license is active. A lapse — even by a few days — can trigger a license suspension. Dealers who let bonds lapse typically do so because they changed surety agencies without managing the transition, missed a renewal notice, or had contact information that was out of date. The consequences are significant: you cannot legally buy or sell vehicles until the license is reinstated.
What Most Florida Dealers Get Wrong About Bond Renewal
The surety bond renewal date rarely aligns perfectly with your dealer license renewal date. Most dealers manage two separate renewal cycles, and missing either one puts the other at risk. The right approach is proactive, not reactive. At Ashton Agency, we track your bond renewal date and reach out before your anniversary — not after. That means you are never scrambling for a bond certificate at the last minute before an FLHSMV deadline. Florida dealers who switch to Ashton for their Florida auto dealer bond often discover their renewal date is sooner than expected.
Ashton Agency — Florida’s Local Surety Bond Partner
Ashton Agency is a licensed surety bond agency based in Winter Park, Florida. We have been issuing bonds to Florida dealers, public adjusters, and licensed professionals since 1968. Unlike automated bond platforms that process your application and move on, we track your renewals, know Florida’s licensing requirements, and answer the phone when something changes.
For more on Florida’s full surety bond landscape — dealer bonds, notary bonds, contractor bonds, and public adjuster bonds — see our Florida surety bonds guide. Or go straight to the auto dealer bond page to compare bond options by state.
