Auto dealer bond in Florida: amount and cost
Florida dealers file a $25,000 bond or letter of credit with each license; with good credit the bond costs about $188 to $375 a year.
Auto dealer bond premium in Florida
$188 to $375
estimated, per year, for a $25,000 bond
| Bond the state requires | $25,000 |
| Which amount | Fla. Stat. § 320.27(10) |
| Rate for credit 700 or higher | 0.75 % to 1.5 % a year |
| Term | 1 year, renewed yearly |
Estimate from published rate grids, not a quote. Fla. Stat. § 320.27(10). Amount read on the official page, October 22, 2026.
Compiled by Radif Partners · Method and sources · rule read October 22, 2026
Florida asks for one of the lower dealer bonds among the states read: $25,000, under section 320.27(10) of the Florida Statutes. The statute requires "a good and sufficient surety bond or irrevocable letter of credit, executed by the applicant-dealer as principal, in the sum of $25,000". The bond is filed with the Department of Highway Safety and Motor Vehicles on its form HSMV 86020, in the exact wording the state prints, and runs with the one-year license. An irrevocable letter of credit from a Florida bank can replace it. Lower amount means lower premium: on published dealer grids, about $188 to $375 a year with a credit score of 700 or more, $625 to $1,250 between 600 and 649, and $1,875 to $2,500 under 550. Because most markets apply a minimum premium, the cheapest quotes cluster near the bottom of that range. Rule read on October 22, 2026.
The statute and the form
Section 320.27(10) sets the security at $25,000 for each licensed dealer, by surety bond or irrevocable letter of credit. The bond protects buyers and the state against the dealer's failure to deliver titles, pay off trade-in liens or comply with the dealer laws. FLHSMV accepts only its own form, HSMV 86020, and the surety must reproduce its wording without change; agencies that write many Florida dealer bonds use it by default, but check before signing.
The license year runs annually, and so does the bond's premium. Dealers renewing their license confirm that the bond is still in force; a bond cancelled during the year must be replaced before the cancellation date to avoid suspension.
Letter of credit instead
A dealer with banking relationships can post an irrevocable letter of credit of $25,000 from a Florida bank instead of a bond. The bank charges a fee and usually blocks the amount against the dealer's credit line or deposits. For most small dealers, a surety bond costs less and leaves the credit line free for inventory.
Florida next to other states
Auto dealer bond premium in Georgia
$350 to $1,050
| Bond the state requires | $35,000 |
| Which amount | O.C.G.A. § 43-47-8(h); Ga. Comp. R. & Regs. 681-3-.01 |
| Rate for credit 650 to 699 | 1 % to 3 % a year |
| Term | 1 year, renewed yearly |
Compared with neighbors
Florida's $25,000 sits below Georgia's $35,000 and half the $50,000 of Texas or North Carolina. Dealers who open in more than one state buy a bond in each, on each state's form. The dealer bond overview lists all the amounts read.
Before filing
Florida's dealer license application asks for more than the bond: a qualifying place of business with posted hours, a pre-licensing course for new owners, and a background check. The bond is usually the last piece, bought once the rest of the file is ready, because the surety writes it in the exact name and address that will appear on the license. If the dealership later moves or changes its name, the surety issues a rider and the department must receive it. A bond that no longer matches the license is a common reason for a renewal to stall.
The Florida rule as read
| Item | Value |
|---|---|
| Bond amount | $25,000 |
| Term | 1 year |
| Rule | Fla. Stat. § 320.27(10) |
| Line read | “a good and sufficient surety bond or irrevocable letter of credit, executed by the applicant-dealer as principal, in the sum of $25,000” |
| Page | www.flsenate.gov |
| Read on | October 22, 2026 |