Florida doesn’t issue a standalone auction license. To get an auction license to buy cars in Florida, what you actually need is a motor vehicle dealer license from the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), and then a separate registration with the auction houses themselves. Two FLHSMV license types get you through the auction gate: the wholesale dealer (VW) license and the independent dealer (VI) license.1Florida Department of Highway Safety and Motor Vehicles. Types of Licenses Available Plan on several weeks of processing and roughly $1,000 to $2,500 in startup costs before you account for your physical location.
Pick the License That Matches Your Exit Plan
Both licenses get you into dealer-only auctions. The difference is what you’re allowed to do with the cars afterward.
A wholesale dealer (VW) license lets you buy, sell, and deal in motor vehicles exclusively at wholesale or through motor vehicle auctions, and only with other licensed dealers. You cannot sell to the public. If your plan is to flip auction cars to other dealers, this is the direct route.
An independent dealer (VI) license lets you buy, sell, and deal in used motor vehicles, including retail sales to the general public. If you want to buy at auction and then sell those cars to consumers off your own lot, this is the license you need.
The application, fees, and requirements are nearly identical for both. Choose based on who you intend to sell to.
What You Need Before You Apply
The FLHSMV won’t process your application until several other pieces are in place. Work through them in this order.
A Registered Business Entity
You must operate under a registered business entity such as a corporation or LLC. File your articles of incorporation or organization through the Florida Department of State’s Division of Corporations, which handles the filings online.2Florida Department of State. Start a Business – Division of Corporations
A Compliant Business Location
Your dealership needs a permanent, commercially zoned location that isn’t a residence. Florida Statute 320.27 requires an adequately equipped office with enough space to store inventory and maintain books and records for inspection.3Florida Legislature. Florida Code 320.27 – Motor Vehicle Dealers FLHSMV guidelines call for at least 100 square feet of interior office space (excluding hallways, closets, and restrooms) and a permanent sign identifying your dealership that is visible from the public right-of-way. A compliance examiner will inspect the location before your license is issued and verify all of this.
The sign requirement catches some applicants off guard. A storefront sign readable from the street usually works, but a lot set back from the road may need a pole or pylon sign. Budget a few hundred dollars at minimum, more for a larger or illuminated sign.
A $25,000 Surety Bond
Every Florida motor vehicle dealer must post a $25,000 surety bond or irrevocable letter of credit before FLHSMV will issue the license.4Florida Senate. Florida Statutes 320.27 – Motor Vehicle Dealers You don’t pay $25,000 out of pocket. You pay an annual premium to a surety company, which typically runs $150 to $250 with good credit and more if your credit history has issues. The bond protects consumers and other dealers; a buyer defrauded or left waiting on a title can file a claim against it.
Garage Liability Insurance
FLHSMV requires proof of insurance before issuing your license. The minimum is $25,000 in combined single-limit liability coverage for bodily injury and property damage, plus $10,000 in personal injury protection (PIP).3Florida Legislature. Florida Code 320.27 – Motor Vehicle Dealers You can meet this with a garage liability policy, or with a general liability policy paired with a business automobile policy at the same limits. Small independent and wholesale operations often use the second option because it’s easier to obtain. Annual premiums for the minimum required coverage typically fall in the $1,300 to $2,500 range, depending on limits, sales volume, and location.
Pre-Licensing Training
You must complete a pre-licensing course through an FLHSMV-approved dealer training school. The statute caps the FLHSMV-required content at eight hours, though schools may include additional hours on other regulatory topics.5Florida Department of Highway Safety and Motor Vehicles. Motor Vehicle Dealer Training School Requirements The course covers Florida dealer laws, title and registration procedures, and record-keeping obligations. Your certificate of completion goes in with your application.
Fingerprints and Background Check
All officers of the dealership must submit electronic fingerprints through an FDLE-approved Livescan vendor.6Florida Department of Law Enforcement. Livescan Device Vendors Vendors usually charge $20 to $50 per person. Keep the receipt; a copy attaches to your application.
Federal and State Tax IDs
You need two tax IDs. Apply for a Federal Employer Identification Number (EIN) from the IRS online at no cost.7Internal Revenue Service. Employer Identification Number Then register with the Florida Department of Revenue for a sales tax certificate of registration, which is what lets you collect, report, and remit sales tax on vehicle transactions.8Florida Department of Revenue. Account Management and Registration Both are free, but both take time to process, so start them early. The Department of Revenue also issues you a Florida Annual Resale Certificate, which lets auction purchases for inventory go through tax-exempt.9Florida Department of Revenue. Annual Resale Certificate for Sales Tax
Filing the Application
With everything assembled, complete form HSMV 86056, Application for a License as a Motor Vehicle Dealer, from the FLHSMV website. The package includes the completed form, your pre-licensing course certificate, fingerprint receipt, proof of insurance, surety bond, business registration documents, and a non-refundable $300 application fee payable to FLHSMV.3Florida Legislature. Florida Code 320.27 – Motor Vehicle Dealers
Send the package to the FLHSMV regional office covering your dealership’s location. Your application is assigned to the office nearest your business address.10Florida Department of Highway Safety and Motor Vehicles. Dealers, Installers, Manufacturers, Distributors, and Importers Processing typically takes several weeks. During that time, a compliance examiner will inspect your business location. Passing that inspection is the last step before the license is issued.
Registering With the Auction Houses
Your Florida dealer license alone doesn’t let you walk into Manheim or ADESA and bid. Most major auction chains require a separate dealer registration, and nearly all of them route through a third-party verification service called Auction Access.
Register first at AuctionAccess.com and provide your dealer license information, EIN, and business details. Auction Access confirms you’re a properly licensed dealer and issues an Auction Access ID number.11Manheim. New Dealer Registration FAQs Then use that ID to open an account with each specific auction platform you plan to use, such as Manheim.com. The registration itself is generally free, though auctions charge buyer fees per transaction once you start bidding.
If You Just Want to Buy One Car at Auction
If you don’t want to run a dealership at all and only want a car for personal use, some salvage auctions such as IAA allow public buyers in Florida, but only through a broker rather than direct bidding.12IAA. Buyer Eligibility by State Broker fees eat into savings, and you’re typically limited to salvage-title vehicles.
Buying cars for regular resale without a dealer license is called curbstoning, and Florida treats it as a second-degree misdemeanor carrying up to 60 days in jail and a $500 fine. Law enforcement can also confiscate every vehicle you have for sale, and assisting agencies can retain or sell the seized property under the Florida Contraband Forfeiture Act.13Florida Senate. Florida Statutes 320.30 – Penalty for Violating Section 320.28 If you plan to buy and resell regularly, the dealer license is the only legitimate path.
Keeping the License Active
Independent, wholesale, and auction dealer licenses expire on April 30 each year. Renew with form HSMV 86720 before the deadline: $75 for one year, $150 for two.3Florida Legislature. Florida Code 320.27 – Motor Vehicle Dealers Miss April 30 and you must stop doing business as a dealer on the expiration date. A renewal filed within 45 days after expiration adds a $100 delinquent fee. After 45 days, you lose the ability to renew and must reapply from scratch.
Every two years, at least one principal of the dealership (owner, partner, officer, director, or full-time management-level employee) must complete eight hours of continuing education through an FLHSMV-approved school, filed with your renewal. Courses run in classroom and correspondence formats.
You also have to keep a written record for every vehicle acquired and disposed of, including VIN, date acquired, how you got the vehicle, seller’s name and address, odometer disclosure, title information, any temporary tags issued, and the buyer’s details on sale.14Legal Information Institute. Florida Administrative Code 15C-7.002 – Motor Vehicle Dealers Records Records must be available for FLHSMV inspection at your business location during reasonable hours. Letting insurance or bond coverage lapse, missing title transfer deadlines, or failing to maintain records are the most common ways new dealers put their license at risk.