How to Become a Used Car Dealer in Florida
So, you want to be a used car dealer? That's great! The FIADA is excited to help you through this journey. Used car dealers are required to be licensed in the state of Florida, and that process has a few steps involved. The following information is meant to help guide you through the process of obtaining your license.
The required Dealer Training Course will explain all of these steps in further detail and give you a good overview of the rules and requirements affecting used car dealers in Florida. Keep in mind, Florida Statute requires that you must complete this course within 6 months of applying for your license. If any of the requirements take longer to complete, you must retake the course
FIADA's Dealer Licensing Course is approved by the DHSMV. Completion of this course gives you the certificate required to obtain your dealer’s license in the state of Florida. The certificate is valid for 6 months from the day it was received so you must complete your application during this time or you will be required to take the class again as a new student.
Click Here to register for the course.
Decide if your new business will be a:
- Corporation
- Limited Liability Company
- Partnership
- Fictitious Trade Name or “DBA" if applicable
Learn more about these options here.
When you are ready, register your business with the Division of Corporations. and then provide the DHSMV with proof of registration.
Apply for a Federal Employee Identification Number with the IRS or use your Social Security Number and Affidavit.
The dealership location must meet specific location requirements and be approved by a DMV Compliance Examiner from your Regional DMV Office. You will need to include a copy of your lease or proof of ownership with your application.
Location Requirements:
- May not operate from your personal home residence
- Office must be a minimum of 100 square feet
- Must have enough parking spaces for the number of anticipated cars
- If sharing building, must have separate entrance and separate address
- Principle business must be sales
When you are choosing a location, don't forget to ask:
- Can there be a dealership at that address or inside an area? If the answer is yes then also ask what is required by Code Enforcement.
- Does that governing agency have licensing requirements?
- What about Sign Ordinances?
- Does City Hall have their own requirements?
- Does the County Courthouse have their own requirements?
Once you have chosen the right location, before you sign the lease, contact your local Division of Motorist Services (DHSMV DMS) Compliance Officer/Inspector and make an appointment for an initial location inspection. Click here for a list of offices by region.
Secure a State of Florida Sales Tax Registration Number. This can be obtained from the State of Florida, Department of Revenue
Independent dealers (VI), Auction dealers (VA), and Wholesale dealers (VW) have the option to submit a copy of: A garage liability insurance certificate which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection; OR A general liability insurance policy coupled with a business automobile policy, which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury. You will also need a $25,000 Surety Bond or Irrevocable Letter of Credit.
FIADA has a Dealer Service Provider Directory that can help you find an Insurance provider who specializes in this type of coverage.
If you choose to Provide a Letter of Credit, an Irrevocable Letter of Credit Form must be completed and submitted with your application. Download that form here.
All officers of the dealership will need to get electronic fingerprinting from a Florida Department of Law Enforcement approved service provider. The ORI# for Dealer Applicants is FL921700Z. You will need to submit the receipt with your application.
Click Here for the approved list of providers.
A deed needs to be in the name of the dealership, not you. A contract is between the dealership and the landlord. If you own the property personally then you are also the landlord and need to register with the Department of Revenue for a sales tax number.
Take these photos of your dealership to include with your application:
- Dealership Entrance
- Display
- Parking area and spaces
Use Form 86056 to complete your Auto Dealer License Application along with all of the supporting documents and the $300 application fee to the DMV Regional Office in your area.