Requirements to open a dealer in Miami
If you are interested in starting a business in the world of car buying and selling and you live in Miami, then it is essential that you know, among other things, what are the requirements to open a reseller in Miami.
For example, did you know that the Florida Department of Vehicles does it offer 10 different types of reseller licenses? Or that you have to meet the requirements for position, registration, civil insurance, training and bail? Surely not, right?
But don't worry, that's what we're here for. In this article, we will explain everything you need to know Requirements for opening a reseller in MiamiIncluded how to apply for a license in Florida.
- What kind of Miami reseller license do you need?
- What are the requirements to open a reseller in Miami?
- How to apply for a license in Florida?
What kind of Miami reseller license do you need?
The first step to open a dealer in miami is to find out what kind of license you need.
The state of Florida, which for obvious reasons governs and executes the process and requirements for opening a retailer in Miami, offers ten different types of licenses:
- Franchise merchant. This license allows resellers sell new vehicles under an agreement with a manufacturer, importer or distributor. Franchise dealers can also sell used vehicles.
- Independent trader. With this license, your dealer can buy, sell and trade used vehicles.
- Wholesale trader. This license allows the Miami dealer to buy, sell and deal in wholesale vehicles.
- Service structure. This license allows Miami auto dealers to operate a service and repair shop.
- Rescue trader. With this license, your dealer can market salvage title cars, either for resale of the cars or their parts. To learn more about the salvage title, be sure to read our article "What's the difference between salvage titles and rebuilt titles?".
- Mobile home dealer. Allow resellers buy, sell or exchange mobile homes. The retailer may also sell RVs after applying for RV approval on the mobile home retailer's license.
- Mobile home broker. With this license, you can only market used mobile homes and act as an agent or intermediary On behalf of the owner or seller of a used mobile home for sale; It also allows you to represent a seller in the search for a buyer for a used mobile home.
- Recreational vehicle dealer. This license entitles the holder only to purchase, sale or brokerage of recreational vehicles.
- Dealer of used motor vehicles for leisure. This license is similar to the previous one in that it allows its holder to do business with recreational cars. doThe difference? That in this case recreational cars are used.
How to Get a Florida Dealer License?
What are the requirements to open a reseller in Miami?
Before applying for a Florida license to sell cars in Miami, you must ensure that you meet the requirements set by the Florida Department of Vehicles.
Regardless of your intentions, for example, if you want to open a used car dealer in Miami or get a license to buy cars at auction, each Florida license has specific requirements, but in general we can divide them into four groups: headquarters, registration, civil insurance, training course and bail.
Requirements for opening a reseller in Orlando
Location requirements to open a reseller in Miami
The location of your future reseller in Miami must meet the following requirements:
- The building must be a permanent structure;
- It cannot be a residential address;
- The office must have 100 square feet of interior space, not counting the bathrooms, hallways, and closets.
Once you have everything ready regarding your retailer's location in Miami, you will need to contact the regional office to have it inspected by an examiner. You will also need to present proof of ownership or the original lease with the license application.
Registration requirements to open a reseller in Miami
The second thing you need to do to meet the requirements to open a retailer in Miami is register the company in Corporation Division of the Office of the Secretariat of State.
Civil insurance requirements to open a reseller in Miami
Car dealers must submit a proof of garage liability insurance with a minimum coverage of $ 25,000. This policy must include protection against personal injury and property damage. Resellers must also get a coverage of at least 10,000 in accident protection.
Training course requirements to open a reseller in Miami
You must complete a training course held by a institution approved by the Florida Department of Vehicles. Upon completion of the course, you will receive a certificate which you will need to include in your application.
Bond requirements to open a dealer in Miami
Car dealerships in Miami, like the rest of Florida, They are required to send a $ 25,000 security deposit. to ensure they meet the requirements listed in the Florida Statutes.
Surely you ask yourself, what is this requirement for? Also, bail provides financial protection to the government and consumersallowing them to receive financial compensation for any damage resulting from violation of the statutes.
In this order of ideas, retailers in Miami must prepay a percentage of the total bond amount. This payment is called a premium. The insurance company issuing the loan determines the premium by evaluating factors such as your experience in the sector, yours credit scorefinancial history, among other factors.
To learn more about how car insurance premiums work in the United States, read our article "What is premium insurance?".
How to open a used car dealership in North Carolina
How to apply for a license in Florida?
Once all the Requirements for opening a reseller in Miamiyou can fill out the Florida license application (Form 86056). Together with the application it is necessary to attach the following documents:
- certificate of completion training course for resellers;
- Copy of your Fingerprints;
- Proof of ownership or copy of the lease of the premises;
- Copy of company registration and registration of the fictitious name of the company (if applicable);
- constitutive Actstatutes of organization and operational agreement (per LLC and society);
- Test liability insurance;
- original form of car dealer bond in florida (86020).
Also you must include payment of the $ 300 application fee payable to the Florida Department of Vehicles. Mobile home and RV dealers have to pay a $ 340 fee.
Once you have collected all the documents and filled out the form, you need to do it send the application package to The regional office for local motor vehicle field operations.
If your request is approved, the Florida Department of Vehicles will send your license to you within one month. Licenses are valid for a maximum period of 12 months and must be renewed by December 31st. Independent, wholesalers and auction dealers must renew their licenses annually by April 30th.
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