Who requires it
Florida Department of Highway Safety and Motor Vehicles (FLHSMV)
Auto dealer · Florida
Florida Motor Vehicle Dealer Surety Bond
Before FLHSMV issues a motor vehicle dealer license, applicants must deliver $25,000 of surety or an irrevocable letter of credit. Florida Statutes § 320.27 sets that security.
Common bond amount
$25,000
Required $25,000 amount for motor vehicle dealers. Mobile home and RV dealer amounts differ—confirm your class on Form 86056.
How you file
File Form HSMV 86020 with FLHSMV, or an irrevocable letter of credit
Renewal
Keep coverage for each license period. File a new bond or proof it is still active when the period starts.
Who requires it
Anyone seeking a Florida motor vehicle dealer license under § 320.27 must file the bond or letter of credit each year before the license issues. It protects people harmed by covered sale or title violations. Motor vehicle, mobile home, and RV dealer classes use different amounts on current FLHSMV Form 86056—match your class before you order.
How much is required
Motor vehicle dealers face a fixed $25,000 sum in statute; you cannot bargain it down. Form 86056 also lists $25,000 (or $50,000 with more than four supplemental locations) for certain mobile home dealers/brokers, and $10,000 (or $20,000 with more than four supplemental locations) for recreational vehicle dealers—those are other dealer tracks, not swaps for the motor vehicle figure.
How to get and file it
Order a surety bond on Form HSMV 86020 (or with the exact approved wording on surety letterhead) from a company allowed to write bonds in Florida, using the legal name that will appear on the dealer application. FLHSMV rejects rewritten language, extra pages, or extra conditions, and it wants the original with the application. Motor vehicle dealers may instead use an irrevocable letter of credit on the department’s form from a bank authorized to do business in Florida. Coverage lasts for the license period. At the start of each period, file a new bond or letter of credit—or proof the current one is still active. Also send a copy within 10 calendar days after any renewal, change, or new issuance. Do not let coverage lapse while the license is active.
Cost note
The $25,000 figure is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $25,000 surety bond or irrevocable letter of credit for motor vehicle dealers
- Form
- HSMV 86020 (Surety Bond for Motor Vehicle Dealer) or approved letter-of-credit form
- Filing
- Original security with the dealer license application to FLHSMV
- Term
- Must cover the license period; renew for each new period
Official sources
Related resources
Frequently asked questions
Can I use a letter of credit instead of a surety bond?
Yes for motor vehicle dealers under § 320.27 and FLHSMV instructions, when a Florida-authorized bank issues the irrevocable letter of credit. RV dealers are told a letter of credit cannot replace a surety bond—confirm your class on Form 86056.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Florida application
Florida will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-06. This guide is based on verified educational content and official sources.
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