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Florida Auto Dealer Bond

Get an Auto Dealer Bond in Florida through Viking Bond Service

The auto industry has a huge impact on the Florida economy, making up 3.8% of the state workforce and generating $44.92 billion in 2018 auto sales according to data from the industry group Auto Alliance. Before you can participate in this thriving industry, however, you will need to obtain a Florida auto dealer bond. Viking Bond Service can help you get the exact bond you need, but first read on to learn more about what is required.

Florida Auto Dealer Bonds Explained

Florida State requires auto dealers to purchase a form of license surety bond known as an auto dealer bond. These bonds are designed to protect car buyers in Florida. They provide a guarantee that ensures there is financial compensation available to the consumer should the auto dealer fail to adhere to the Florida state laws regarding auto sales. In Florida, the required motor vehicle dealer bond amount is the following:

• Florida Motor Vehicle Bond requirement - $25,000 surety bond

These are the current bond requirements, but they could have changed since publication. Be sure to check with the Florida Department of Highway Safety and Motor Vehicles (the agency responsible for regulating auto dealers) about any updates or changes to these requirements.

What Parties Are Included in a Florida Motor Vehicle Dealer Bond?

Your Florida auto dealer surety bond will involve three key parties:

• The surety: the underwriter of the bond. The surtey issues the bond to the principal and pays claims to the obligee. Even though they guarantee payment, the surety will ultimately collect any amount they pay from the principal.
• The obligee: the party that requires the bond (Florida State). The obligee is also the beneficiary of the bond, meaning that they receive compensation for claims and disperse it to the parties affected by the auto dealer's illegal or unethical behavior.
• The principal: the auto dealership owner. The principal is responsible for obtaining a Florida motor vehicle surety bond, renewing it as needed, and paying for any claims filed against the bond.

Who Needs an Auto Dealer Bond in Florida?

Dealerships that sell motor vehicles, recreational vehicles, or mobile homes will need to have an auto dealer bond in place as part of the dealership licensing process. Any business participating in the sale of these vehicles will generally be required to purchase a motor vehicle surety bond in Florida that offers $25,000 of financial coverage. According to the most recent state rules, anyone who intends to buy or sell four or more vehicles within a 12-month period qualifies as an auto dealer and therefore needs to have a license and a bond. Auto dealers who fail to get either a license or a Florida auto dealer bond could be subject to penalties including fines, permanent loss of license, or time behind bars.

How Are Auto Dealership Bonds in Florida Obtained?

To obtain a motor vehicle dealer bond in Florida, you'll need to use the services of a bonding company like Viking Bond Service. With Viking Bond Service the process is simple: all applicants submit an application form and the supporting documentation needed to calculate your quote. The additional documentation includes a credit check and in some cases business financial records and a business resume. Once the application is complete, all paperwork signed, and the premium paid, you will be issued your motor vehicle dealer surety bond for the state of Florida. You will also be given paperwork that you can provide to the Florida Department of Highway Safety and Motor Vehicles proving that you have a bond that meets the licensure requirements.

How Much Will a Florida Auto Dealer Surety Bond Cost?

There is no fixed price for a motor vehicle dealer bond in Florida, but prices generally range between 1 and 3 percent of the bond amount. That means if you pay 3% of a $25,000 of a motor vehicle dealer bond Florida, the premium costs just $750. The price of the bond premium is influenced by many factors, including your credit history and financial standing of your dealership. The bonding company uses risk factors to calculate the likelihood that they will receive a claim against the bond to determine the exact premium cost. The company is also trying to determine how likely you are to pay them back for any claims they end up paying out to the obligee. Surety companies need to protect themselves from risk, but good ones like Viking Bond Service are not in the business of denying people for bonds because they have low credit scores or mistakes on their credit report. We seek to find the best rate and terms for our clients.

Choose Viking Bond Service for Your Auto Dealer Bond in Florida

At Viking Bond Service we make getting the auto dealer bond you need fast and easy. As one of the top auto dealer bond companies in the US, we have the experience and knowledge to get you the bond you need when you need it. We have provided Florida auto dealer bonds to our clients for over a decade and have clients who have maintained their bond with us for just as long. Our website is full of information about the bonding process. We have an easy online application that takes just minutes to complete, and you will get a quote back in as little as 24 hours. Everything we do is set up to make Florida auto dealer bonds as accessible as they are affordable. If you're ready to cross bonds off your to-do list, count on us to make it easy.

Request a Quote for a Florida Auto Dealer Bond

For more information, call us at 1-888-278-7389, or complete the contact form on this page. One of our in-house bond experts will be happy to answer your questions and walk you through any step of the process. If all you need is a bond, jump right into the online application.