How do you get a car dealer's license in Florida?

Answer 1

Here is a reprint of the Florida state page linked to the right:

In Florida, motor vehicle dealers are licensed and regulated by the Division of Motor Vehicles under Section 320.27 Florida Statutes.

The Law

Florida law states that any person, firm partnership, or corporation that buys, sells, offers for sale, displays for sale or deals in three or more motor vehicles in any 12-month period is presumed to be a motor vehicle dealer and must have an appropriate license issued by the State.

License Types

There are four classes of licenses issued to motor vehicle dealers. They are:

Independent Dealer--for a person dealing in used motor vehicles only. This license permits the licensee to transact business at retail or wholesale.

Franchise Dealer--allows the licensee to sell new motor vehicles under an agreement with a manufacturer. This license also permits the licensee to sell used motor vehicles.

Wholesale Dealer--licensees may only buy from, sell to, and deal at wholesale with other licensed dealers.

Auctions--are licensed to sell, on behalf of licensed dealers, through the bid process. Auctions may not sell retail.

Application

Before going into the business of selling motor vehicles, a person must submit a completed application, with required documentation and fees. License applications may be obtained from any Division of Motor Vehicles' regional office.

General DMV Requirements

• Approval of business location by a DMV representative.
• Completed application form.
• Fee of $300 for each main location.
• $25,000 surety bond or letter of credit.
• Garage liability insurance.
• Copy of lease for location or proof of ownership.
• Dealer training seminar certificate.
• Registration of fictitious trade name.
• Copy of corporate papers.
• Sales tax number.
• Federal employer identification number.
• Fingerprints and applicable fees. ($47 per person).

Note: Franchise dealers must meet certain additional requirements.

Failure To Obtain A License

Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. Such person will also be liable under civil law for violation of Florida�s Deceptive and Unfair Trade Practices Act, subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.

More Information

If you have questions about application procedures and licensing requirements, contact the DMV regional office.

More Information from the KrazyKarGuy - "License for a fee - $199 to $299 a month"

There are companies in Indiana advertising on the internet now offering to license you for a fee.

These Indiana licenses will allow you to sell to other dealers and wholesalers ONLY. You cannot sell retail to the consumer from your home or on the Internet. Investigate any "licensing for a fee" with the dealer licensing board in YOUR state.

These Indiana companies don't really make that very clear. You could get in a lot of legal hot water by not knowing the laws in YOUR state for buying and selling cars in YOUR state where you are making transactions. The State of Indiana could also get involved if you violate the guidelines of your Indiana license. ALL state statutes (laws) level hefty fines and in some cases jail time for violations.

As an example; Wal-Mart may be have its corporation licensed in Delaware (most companies do) but it MUST follow the laws in all the states where it ACTUALLY does its business transactions. If it doesn't, any state where it does business will take action.

As a dealer doing transactions in a state other than the one you're licensed, you MUST do the same; i.e. follow the laws and licensing statutes of the state where the transaction actually takes place... the location of the product (car) being sold. Selling on the Internet does not absolve you from licensing in the state your doing transactions.

One of the Indiana companies has a "retail" package. You cannot use a retail license in Indiana to make retail transactions in your state if the vehicle is not located in Indiana. Again, the Internet is not a place, its a form of advertising just as classified ads. Verify this with your state licensing board. Protect yourself.