Every day, licensed motor vehicle dealers in Florida unlock exclusive access to wholesale inventory that most private sellers never see. That’s the power of holding an auto dealer license. Whether you’re opening a lot in Tampa or launching a digital showroom, getting a license of car auctions in Florida is your first legal step toward buying and selling motor vehicles at scale.
Here’s what the Florida Department of Highway Safety and Motor Vehicles says:
“To legally engage in the sale of three or more motor vehicles in Florida, you must hold a valid motor vehicle dealer license.”
Why bother?
Because without it, attending dealer-only car auctions in Florida is off-limits — and so are some of the best deals in the resale industry.
✅ Legal protection when selling used vehicles
✅ Access to wholesale-only auctions statewide
✅ Eligibility to sell recreational vehicles and wrecked vehicles
✅ Required to conduct business as a vehicle auction dealer
Who Needs a Car Auction License in Florida?
Some assume you can sell cars on the side without hassle. Not in Florida.
You may be wondering: “How to get a car auction license in Florida?” First, understand that you’re legally limited to selling up to 2–3 vehicles per year without a car dealer license. More than that, and you’re entering motor vehicle dealer territory.
If you plan to:
- Sell vehicles full-time
- Buy cars at dealer-only auctions
- Start a business with licensed dealers
- Sell recreational vehicles or used recreational vehicles as recreational vehicle dealers
…then you need a Florida auto auction license. This applies whether you want to be a vehicle dealer, mobile home dealer, or auction specialist. Otherwise, you risk violations under FL Statutes.
Different Types of Florida Dealer Licenses Explained
| License Type | Who It’s For |
| VI (Vehicle Independent Dealer) | Sell used motor vehicles to the public |
| VW (Wholesale Dealer) | Sell vehicles only to other licensed dealers |
| VA (Auction Dealer) | Conduct motor vehicle auctions |
| SD (Salvage Dealer) | Buy/sell wrecked motor vehicles for parts or rebuild |
👉 Auction license in Florida specifically refers to the VA license type, allowing you to operate auction businesses legally.
Step-by-Step Guide to Getting a Car Auction License in Florida
Step 1 – Complete the Pre-Licensing Training Course
Before anything else, complete the 16-hour pre licensing dealer training through a state-approved provider.
- Required for all first-time applicants
- Online and in-person options
- Exemptions apply for long-time license holders
- Cost: $150–$200
Step 2 – Register a Legal Business Entity
- Choose structure: LLC or Corporation
- File your fictitious business name registration
- Apply for a Federal Employee Identification Number (FEIN)
- Obtain business registration certification
- Create an operating agreement for your business entity
🚫 Using your personal name alone isn’t enough.
Step 3 – Choose and Prepare a Business Location
A Florida auto dealer license requires a compliant business location.
- Commercially zoned
- Permanent structure with an office
- Phone line, visible signage, and display space
- No residential or storage unit addresses
📍Zoning violations can delay your application or result in denial.
Step 4 – Secure Garage Liability Insurance
This insurance is mandatory for Florida car dealers.
- Minimum coverage: $25,000 bodily injury / $10,000 property damage
- Acceptable alternative: General liability insurance policy or Business Automobile Policy
- Single limit liability coverage options available
- Cost: $1,500–$3,000 per year
Insurers may bundle property damage protection with personal injury protection for broader coverage.
Step 5 – Obtain a $25,000 Surety Bond
All applicants must submit an original surety bond.
- Bond amount: $25,000
- Protects consumers from fraud or default
- Cost: $200–$450 per year (based on credit score)
Keep your bond valid throughout your license period.
Step 6 – Get Fingerprinted for Background Check
Florida requires electronic fingerprints for all owners and partners.
- Submit via Livescan
- Fees range from $50–$70
- Results go to the regional office responsible for processing
Every vehicle auction dealer must pass a criminal background check before approval.
Step 7 – Submit the Completed Application
Fill out the HSMV Form 86056 completely and attach:
- Proof of pre-licensing requirements
- Garage liability insurance certificate
- Surety bond documentation
- Location lease
- Dealer training certificate
- Driver’s license copy
💡 Submit all relevant paperwork to the FL Department’s regional office nearest you.
Optional Add-Ons That May Be Required
⚙️ Sales tax number from the FL Department of Revenue
⚙️ Local business tax receipt from city/county
⚙️ Signage permit for your visible outdoor sign
These are not always mandatory, but they’re often requested during inspections.
Common Mistakes to Avoid During the Application Process
📛 Errors delay approvals and increase the chances of denial. Avoid these common pitfalls:
- Listing a residential address as your business location
- Skipping the pre-licensing dealer training
- Submitting incomplete insurance documents
- Failing to notarize the original surety bond
- Using a non-compliant sign or no sign at all
- Forgetting to register your fictitious business
These details may seem minor, but each is grounds for rejection by a compliance examiner.
Cost Breakdown for a Florida Car Auction License
| Item | Estimated Cost |
| Pre-licensing course | $150–$200 |
| Garage liability insurance | $1,500–$3,000 |
| Surety bond | $200–$450 |
| Business registration | $100–$160 |
| Fingerprinting | $50–$70 |
| Application fee | $300 |
| Signage, office setup | $500–$2,000 |
💲 Total Range: $2,800–$5,900 depending on location and business scale.
How Long Does It Take to Get Approved?
⏳ The typical timeline:
- Pre-licensing: 1–2 days
- Fingerprinting: 2–5 days
- Registration: 1–3 days
- Insurance + bond: 1–2 days
- Application review: 2–4 weeks
📅 In most cases, expect a 2–6 week approval period if no paperwork is missing.
License Renewal and Ongoing Compliance Tips
To keep your auto auction license active, follow this checklist:
- Renew annually before expiration
- Submit updated proof of garage liability insurance
- Maintain an active surety bond
- Keep business signage and phone lines active
- Stay compliant with FL Statutes
- Prepare for unannounced inspections by the Florida Department
Auto dealers who fail to meet these standards risk license suspension or fines.
Public vs. Dealer-Only Car Auctions in Florida
| Auction Type | Access | Pricing | License Needed |
| Public | Anyone | Retail | No |
| Dealer-Only | Licensed dealers only | Wholesale | Yes |
Only vehicle wholesale dealer license holders can attend dealer-only events. That’s where true margins lie.
Can You Operate an Online-Only Auction Business in Florida?
Yes, but with caution. While many try to launch digital-only dealer businesses, Florida still requires a physical business location. Virtual-only setups without an office violate zoning laws.
💡 Tips:
- Maintain a compliant location even if your sales happen online
- Store documents on encrypted drives for digital audits
- Use secure dealer platforms to sell cars online
🧠 Expert insight: “Online auctioning expands your reach, but don’t ignore local zoning compliance — it can shut down your operation overnight.”
FAQ
How many cars can you sell in Florida before needing a license?
Up to two or three per year. Selling more requires a dealer license.
Can I operate a car auction business from my home in Florida?
No. A compliant commercial business location is required.
How long does it take to get a car auction license in Florida?
On average, 2 to 6 weeks, depending on document processing and fingerprint results.
What is the most expensive part of getting a Florida dealer license?
Garage liability insurance and location setup typically cost the most.
Do I need to renew my Florida auction license every year?
Yes, with updated documents and payment of renewal fees.
Can two people share a single Florida dealer license?
Only if both are legally listed owners or officers in the business.
What happens if I bid at a dealer auction without a license?
You risk being fined, banned, or prosecuted under Florida Statutes.
