By having a $25,000 motor vehicle dealer bond, the auto dealers, or principals, ensure that customers who suffer financial loss or damages due to the dealer’s unlawful business practices will be paid up to the full amount of the bond. However, it is important to keep in mind that motor vehicle bonds are not insurance for the principal. Insurance claims are fairly common and odds are that they will occur at some point, but claims against a surety bond should be avoided at all costs. Auto dealer surety bonds can be claimed if a consumer files a complaint with the State of Florida for damages due to violations of the regulations by the principal and reimbursement is offered. In the event that a bond claim is paid out, the principal will be responsible for reimbursing the surety. On top of that, if a bond claim has to be paid out by the surety it will make the process of becoming bonded again more difficult for the principal. By posting a Florida vehicle dealer bond, the principal agrees to abide by the standards set by the Division of Motorist Services in the Florida statutes and any violations of those standards will complicate the motor vehicle dealer’s ability to conduct business.
In Florida, the law states that any motor vehicle dealer must have an appropriate license issued by the state. There are six classes of licenses issued, the four licenses for independent dealers are:
Failure to obtain a license can result in serious repercussions. A person violating the licensing requirements will be charged with a second-degree misdemeanor and can face up to six months in jail and/or a $500 fine. The person found guilty will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act. This can result in fines up to $5,000 per violation and may face a permanent injunction. Bonds are necessary before beginning the application process for licensure and approval can sometimes be a lengthy process. It is important to return the form to your appropriate regional office that serves your locale to avoid any delay in processing time. There is a $75 fee for license renewals and independent dealers must provide proof of at least eight hours of continuing dealer training.
Auto dealer surety bonds protect customers, sellers, and financial enterprises by providing financial guarantees that help keep the industry in order. At The ProSure Group, we have experience providing bonds for hundreds of financial institutions, auto dealers, agricultural product dealers, law firms, insurance agencies and medical care providers. Contact us today to find the right auto dealer bond to suit your needs.
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The surety bond is required in order to be a licensed dealer and is in place to protect the public from noncompliance by the principal with any conditions of a written contract made by the dealer in connection with the sale or exchange of any motor vehicles and against violation of any of the provisions of Chapters 319 and 320 of Florida Statutes in the conduct of the business.
The Florida Department of Highway Safety and Motor Vehicles, Division of Motorist Services administers the application process for Motor Vehicle Dealer Licenses. The bond is one of the most important of several documents which must accompany the license application. The Obligee on the bond reads as the duly appointed and qualified Director of the Division of Motorist Services of the State of Florida.
Bonds run concurrently with the license. Independent Motor Vehicle Dealer (VI), Wholesale Motor Vehicle Dealer (VW), Auction Dealer (VA), and Salvage Dealer (SD) licenses and bonds both expire on April 30th every year. Franchise Motor Vehicle Dealer (VF) licenses and bonds both expire on December 31st every year. The bond can be continued by renewal certificate and can be canceled with 30 days notice from the surety company.
Contact The ProSure Group. As surety bond experts in business over 23 years in Florida, The ProSure Group has handled thousands of bonds of this type and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.
What you will need to submit to obtain your license:
|License||Florida Motor Vehicle Dealer (MVD) Surety Bond||Director of the Division of Motorist Services of the State of Florida
||$25,000||Click Here To Get Bonded|