Are you looking to start a used car dealership in Florida? Getting a used car dealer’s license is the first step to legally buying and selling vehicles in the state.
The process can seem daunting, but it is quite manageable if you follow the proper steps. By obtaining a dealer’s license, you gain access to legal protections, the ability to buy wholesale vehicles, and the opportunity to operate a legitimate business.
In this blog post, we’ll walk you through the step-by-step process to get your used car dealer’s license in Florida, highlight key licensing requirements, and explain why Twin Cities Auctions is a smart choice for sourcing vehicles.
Whether you’re a first-time buyer or a seasoned professional, this guide will provide you with all the information you need.
Key Takeaways
- Florida law requires a used car dealer’s license to sell vehicles in the state.
- You can legally sell up to two cars per year without a dealer’s license in Florida, but anything beyond that requires a license.
- The application process involves meeting eligibility requirements, submitting documents, passing inspections, and paying application fees.
- Twin Cities Auctions is a cost-effective and convenient option for dealers looking to source inventory.
Step by Step Process: How to Get a Used Car Dealer’s License in Florida
Step 1: Meet Eligibility Requirements
Before applying for your used car dealer’s license, ensure that you meet the eligibility criteria:
- Minimum Age: You must be at least 18 years old to apply for a dealer’s license.
- Background Check: Florida requires a criminal background check. Felony convictions related to fraud, theft, or other financial crimes may disqualify you from obtaining a license.
- Physical Location: You must have a physical business location that complies with Florida’s zoning laws. This location must be dedicated to vehicle sales and meet all local regulations.
- Insurance: You must provide proof of liability insurance to protect both your business and your customers in case of accidents.
Step 2: Register Your Business
Once you meet the eligibility requirements, you’ll need to establish your business legally:
- Register your business with the Florida Division of Corporations.
- Obtain a Federal Employer Identification Number (EIN) from the IRS for tax purposes.
- Apply for a sales tax permit with the Florida Department of Revenue, as you’ll need to collect sales tax on each vehicle sold.
Step 3: Submit Your Application to the State
Once your business is registered, submit your used car dealer’s license application to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). The application will require:
- Personal and business information (name, address, ownership details).
- Proof of registration with the Florida Division of Corporations and the Department of Revenue.
- Proof of liability insurance.
- Completed criminal background check consent form.
You can access the application and further instructions on the FLHSMV website: Florida Department of Highway Safety and Motor Vehicles.
Step 4: Pay the Application Fee
You will need to pay an application fee when submitting your application. The fees vary depending on the size and scope of your dealership, but typically range from $300 to $400.
Step 5: Complete the Pre-Licensing Dealer Education Course
In Florida, you are required to complete a pre-licensing dealer education course. This course covers:
- Florida’s laws regarding vehicle sales.
- Dealer responsibilities.
- Consumer protection laws and how to manage disputes.
The course lasts three hours long and you can take it online or in person. After you complete the course, you will receive a certificate of completion, which you need to finish the licensing process.
Step 6: Schedule a Dealership Inspection
Once you complete your application and pre-licensing course, you must schedule an inspection of your dealership location. A representative from FLHSMV will visit your location to ensure that it complies with zoning laws, safety regulations, and other business requirements. Ensure that your dealership meets all these criteria to pass the inspection.
Step 7: Wait for License Approval
After you pass the inspection and submit all required documents, the licensing office will review and approve your license. The process typically takes 4 to 6 weeks, depending on the completeness of your application and the volume of submissions.
Once approved, you’ll receive your used car dealer’s license, allowing you to legally start buying and selling vehicles in Florida.
Dealer Licensing Requirements in Florida
Here’s a summary of the key requirements for obtaining a used car dealer’s license in Florida:
| Requirement | Details |
| Age | Must be 18 years or older |
| Business Location | Must have a physical location for vehicle sales |
| Insurance | Proof of liability insurance is required |
| Background Check | Must pass a criminal background check |
| Dealer Education | Completion of a 3-hour pre-licensing course |
| Application Fee | Ranges from $300 to $400 |
| Sales Tax Permit | Required to collect sales tax |
| Sales Limit | Can sell up to 2 cars per year without a license |
Why Auctions Are a Smart Choice for Vehicle Sales
When you’re building your inventory, using auctions can be a smart choice for sourcing vehicles. Twin Cities Auctions, based in Minnesota, is one such reputable auction house that offers a wide range of vehicles at competitive prices.
Key Benefits of Buying from Auctions:
- Wide Selection: Auctions like Twin Cities Auctions offer a variety of vehicles, from low-budget cars to high-end models.
- Competitive Pricing: Auctions often offer vehicles at prices below retail value, enabling dealers to maximize their profit margins.
- Transparency: Auctions provide full vehicle history reports, so you know exactly what you’re buying.
- Convenient Bidding: Many auctions offer online bidding for your convenience, making it easier to source vehicles without being physically present.
Twin Cities Auctions: A Smart Vehicle Sourcing Choice
For those in the automotive industry, Twin Cities Auctions offers an excellent platform for sourcing quality vehicles at competitive prices.
Whether you are just starting or expanding your business, this auction house provides transparency, competitive pricing, and a broad selection.
| Feature | Description |
| Inventory Variety | Wide range of cars, trucks, and SUVs available |
| Competitive Pricing | Below-market pricing allows for higher profit margins |
| Vehicle History Reports | Detailed history reports for every vehicle |
| Online Bidding | Convenient online bidding options for dealers |
| Financing Options | Financing available to help with inventory purchases |
Practical Tips for Sellers and Dealers
Once you’ve obtained your used car dealer’s license, here are a few tips to help you operate your dealership efficiently:
- Stay Compliant: Florida’s car sales laws can change over time. Keep up to date with the latest regulations to ensure you stay compliant.
- Maintain Proper Records: Keep thorough records of all vehicle sales, including buyer details, vehicle history, and any service or repair work done.
- Offer Transparency: Be transparent about the condition and history of the vehicles you sell. This helps build trust with customers and ensures you comply with consumer protection laws.
Conclusion
Obtaining a used car dealer’s license in Florida is an essential step for anyone looking to start a dealership.
By following the outlined process, meeting all requirements, and sourcing vehicles from auctions like Twin Cities Auctions, you’ll be well on your way to running a successful business.
Whether you’re just getting started or looking to expand, understanding the process and knowing where to source quality vehicles is key to your success.
Twin Cities Auctions: No Dealer License? No Problem!
Are you interested in buying or selling a car but worried about the complexities of needing a dealer license? Worry no more! At Twin Cities Auctions, we’ve removed the barriers, making our auctions open to everyone.
Whether you’re a seasoned buyer or a first-time seller, our platform offers a welcoming environment where you can participate freely. Experience the ease and excitement of our next auction and discover just how simple and rewarding a car auction can be!
Looking for more options? Explore our comprehensive list of all available car auctions across the United States. Your next deal might be just a click away!
FAQs
How many cars can I sell without a license in Florida?
In Florida, you can legally sell up to two vehicles per year without a dealer’s license. If you wish to sell more than that, you must obtain a used car dealer’s license.
What documents are required to apply for a used car dealer’s license in Florida?
You will need to provide proof of business registration, proof of liability insurance, completed background check consent form, and the dealer education course certificate.
How long does it take to get a used car dealer’s license in Florida?
The process generally takes 4 to 6 weeks, from application submission to approval, depending on how complete your application is and the DMV’s workload.
Do I need to take a dealer education course in Florida?
Yes, a 3-hour dealer education course is required as part of the licensing process. This course covers Florida’s vehicle sales laws, dealer responsibilities, and consumer protection regulations.
What is the cost of a used car dealer’s license in Florida?
The application fee typically ranges from $300 to $400 depending on the type and size of your dealership.
Can I sell cars online if I have a used car dealer’s license in Florida?
Yes, once you obtain your license, you can legally sell cars online. However, you must still comply with Florida’s vehicle sales and tax laws.
What is required for the dealership inspection in Florida?
The inspection will ensure that your location complies with zoning laws, safety regulations, and business requirements. It’s important to have your dealership set up and ready before scheduling the inspection.
Where can I find used cars for my dealership in Florida?
Auctions like Twin Cities Auctions offer a great way to purchase inventory for your dealership at competitive prices, with full transparency and financing options available.