Florida requires a $25,000 surety bond (or irrevocable letter of credit) before the Department of Highway Safety and Motor Vehicles issues or renews a motor vehicle dealer license. Form HSMV 86020 is the department-approved bond instrument.
| Title / common name | Florida Motor Vehicle Dealer Surety Bond (HSMV Form 86020) |
|---|---|
| Bond type | License & permit |
| Industry / license category | Automotive / motor vehicle dealer |
| Jurisdiction | United States → Florida → Florida Department of Highway Safety and Motor Vehicles (FLHSMV) |
| Obligee | Director of the Division of Motorist Services of the State of Florida, and successors in office Form HSMV 86020 names the Director as obligee. Fla. Stat. §320.27(10) also says the bond is to the department and in favor of persons in retail or wholesale transactions who suffer loss from contract or Chapter 319/320 violations. |
| Typical penal sum | USD $25,000 Fla. Stat. §320.27(10)(a): annually, before a dealer license is issued, the applicant must deliver a surety bond or irrevocable letter of credit in the sum of $25,000. Aggregate liability in any one year cannot exceed the bond sum. |
| Who needs it | Motor vehicle dealers applying for or renewing a Florida dealer license under §320.27 Bond or irrevocable letter of credit is an annual licensing condition. A continuation certificate supports each subsequent license period. |
| What it covers | Compliance with written contracts for the sale or exchange of motor vehicles, and not violating Chapters 319 and 320, Florida Statutes, in the licensed business Protects persons in retail or wholesale transactions who suffer loss from those breaches. Surety may cancel by 30-day registered-mail notice to the obligee (per the form). |
| Form number / edition | HSMV 86020 (Rev. 08/11) Department-approved form. Statute requires the bond to be in a form approved by the department. |
| Effective | Runs with the dealer license period; may be continued by certificate each year |
| Source | FLHSMV — HSMV Form 86020 Motor Vehicle Dealer Surety Bond (PDF) (official PDF · Rev. 08/11) Also: Fla. Stat. §320.27 (2026) — Motor vehicle dealers (subsection (10) surety bond / irrevocable letter of credit) |
| Status | current |
| Last verified | 2026-10-09 |
FLHSMV publishes Form 86020 as a public PDF. Open the Source link above for the official form — Global Guarantors summarizes field facts and links the statute rather than hosting the complete bond body.