A car dealer license in Florida is a must have item for anyone interested in buying, selling, or trading motor vehicles in the state.
If you are wondering how to get a car dealership in Pompano Beach, FL, you certainly want to know what steps to take to open your auto dealership legally. Knowing the process will help you start your dealership business easily.
This article serves as your step by step guide on how to get a car dealer license in FL.
Article Summary
How To Get a Car Dealer License in FL
Suppose you need a Florida car dealer license. In that case, you should submit a completed application and proof of completion of a prelicensing dealer training course, submit a surety bond, and get your fingerprint.
Maybe not super easy, but Vermeer, Rhode Island, Santa Claus, Indiana these seem very straightforward.
The steps for getting a car dealer license in the Sunshine State start with the application available on the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) website. You’ll need to show you have a grasp of the business.
That’s where the mandatory pre licensing training comes in when you visit an area technical college, where you learn how to run the dealership.
You have to have a surety bond so that if you default, someone can recover the finances. You have to be fingerprinted so they can do a background check.
They want to know everything about you so that they know what type of character you have. This is all part of being a car dealer in Florida.
This is how we make money in cars, and we’ve been here for 40 years. I want to retire with a suntan and surfboard.
Eligibility Criteria For Car Dealer Licenses In FL
A car dealer license in Florida is a must for anyone who wants to sell cars. The selling of cars in the state is governed by implementing strict regulations on the qualifications of dealers. This essay will analyze these requirements.
Minimum Requirements
- Business Location: Must comply with zoning laws.
- Display Lot: Sufficient size for vehicle inventory.
- Office Space: Permanent structure with working utilities.
- Signage: Visible, professional sign with business name.
- Records: Safe storage for transaction records.
- State Approved Training: Complete dealer training course.
- Liability Insurance: Coverage for inventory and operations.
- Electronic Filing System: Register with the DMV for title work.
Background Checks And Fingerprints
All applicants undergo background checks. Fingerprints are a must. These steps ensure dealer integrity.
Dealers who don’t have a clean antecedent have never harmed any consumer in the past. So, the trace of fingerprints connects to a national database that, in turn, prevents consumers from getting defiled.
Types of Car Dealer Licenses in Florida
Obtaining a car dealer license in Florida enables you to sell cars in Florida. The state of Florida offers three different types of dealer’s licenses.
These types of licenses address three distinct purposes. Let’s take a look at them.
Franchise Dealer Licenses
It is a license to sell new cars. The dealer can sell used cars as well in the online space. Franchise dealers are workers of the car manufacturers. This business has rules to follow.
- Access to the newest car models
- Ability to sell certified pre-owned vehicles
- Manufacturer support and training
Independent Dealer Licenses
Selling second hand cars only. Independent dealers do not link with car makers, so they can do more business on their terms (buy and sell).
Benefits Include:
- A large variety of car brands
- Less strict business rules
- Lower startup costs
Wholesale Dealer Licenses
This license is for vendors who sell cars to other dealers. The wholesale dealers don’t buy or sell a car for public use. They buy in bulk.
- Focus on bulk sales
- No need for a showroom
- Lower operational costs
Steps To Acquiring Your Dealer License
Let’s take a look and get you available to sell cars in the Sunshine State. There are three steps in this guidebook to getting your Florida dealer license. Here we go!
1. Completing Pre Licensing Dealer Training
In Florida, for example, the Department of Highway Safety and Motor Vehicles requires all applicants for an auto dealer license to complete a course that covers Florida law and regulations.
You’ll learn the specifics about motor vehicle sales and dealership licensing in Florida. The course outlines the basics of auto dealer operations, motor vehicle titles, and also some sales techniques.
Look for a state approved ‘Pre Licensing Training Provider’ to make sure your course meets the licensing requirements for the vehicle type you want to sell.
2. Gathering Necessary Documentation
Second, obtain the required paperwork for the application. This includes the business plan, proof of financial statements, proof of your identity, a criminal background check, and other documents relating to your accounting, commercial, and government data. Keep this paperwork in order and ready for submission.
3. Securing A Permanent Business Location
Your dealership has to have a permanent place of business. You need an office and a place to display your vehicles.
The local government must properly zone the place of business. Make sure your business location is ready for inspection by the Florida Department of Highway Safety and Motor Vehicles.
4. Obtaining Insurance And Surety Bonds
Finally, you’ll need to get insurance and a surety bond. These help to protect purchasers, and they make sure you can satisfy claims.
The state has standardized minimum requirements for the types of policies you’ll need to have. Look to insurers that specialize in auto dealer policies for the best coverage.
But proceed on this course, and if you’re successful in financing and listings, you’ll find yourself designated a licensed car dealer in Florida.
Well, you don’t need a capital ‘F’ acting for your writing, and you don’t even need to wend your way through verbs (even though some of the best writers do that). Just follow these few steps faithfully and see what you’ve achieved.
After Obtaining Your License: What’s Next?
You did it! You’ve been issued your new dealer license and earned it. Hopefully, you studied hard and passed the test, and a dealer license will be earned.
That was a great accomplishment and your first hurdle. However, it’s just the beginning. Now that you have a dealer license, be sure to preserve it and stay compliant.
Here’s what you need to do to stay out of trouble and keep your license active.
Annual Renewal Process
As a passenger car dealer in the state of Florida, your license must be renewed every year. If renewals are missed, a fine will be below.
To avoid this, you have to see to it that the deadline is past the deadline. Mark it on your calendar and send yourself some reminders.
Your renewal application must be subject to review. All the necessary clinics and forms must be included in the renewal application package.
And make sure that your cheque or money transfer is right on target. This will make sure that your dealership keeps constantly up and running.
Continuing Education
1. Stay informed about industry changes.
2. Complete required continuing education courses.
3. Contact the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) for details on courses.
4. Use education to enhance customer service and sales techniques.
Compliance With State Laws And Regulations
A good rule of thumb is to have them done regularly. Make sure you comply. Don’t be afraid to call a lawyer when you need to.
We want to protect the reputation of our dealership. Be totally open and transparent with your customers.
Verify all provided information is factual as of the date of knowledge. For more up-to-date information, please refer to the Florida Department of Vehicles, as data may change.
FAQs on
How Much Does It Cost To Get a Dealer License in Florida?
It cost $300 just to get my license. It is the fee for the application. Other fees could also be added. I had to apply to get this license in Florida.
How Many Cars Can I Sell in Florida Without a Dealer’s License?
You can sell up to three cars a year without a dealer’s license in Florida.
How To Get an Auction License To Buy Cars in Florida?
To obtain an auction license in the State of Florida, one must apply through the Florida Department of Business and Professional Regulation. Submit the application and fees. Complete a pre licensing course. Pass the state exam. A key that opens the door to car auctions in the entire state.
Conclusion
Getting a car dealer license in Florida is a piece of cake, as the following checklist attests. And if you follow the regulations in the letter, your dream of a car only zone will come true.
With perseverance and patience, your shiny new dealership will be up and running real soon. Start your engine. Florida awaits your business!
