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«A-Z DEALER LICENSING GUIDE A AAMVA: American Association of Motor Vehicle Administrators (AAMVA) is a nonprofit organization committed to enhancing ...»

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A-Z

DEALER LICENSING GUIDE

A

AAMVA: American Association of Motor Vehicle Administrators (AAMVA) is a nonprofit

organization committed to enhancing safety and security through motor vehicle administration

and law enforcement. Founded in 1933, AAMVA represents the state and provincial officials in

the United States and Canada who administer and enforce motor vehicle laws. AAMVA’s

programs encourage uniformity and reciprocity among the states and provinces. The association also serves as a liaison with other levels of government and the private sector. Its development and research activities provide guidelines for more effective public service.

AAMVA’s membership includes associations, organizations and businesses that share an interest in the association’s goals. The Department is an AAMVA member. You can visit AAMVA’s website at http://www.aamva.org.

ADMINISTRATIVE STOP: Is a computer entry to a specific title record, which prevents further title action from being processed until the stop is removed. Please refer to TL 24 T http://www3.flhsmv.gov/dmv/Proc/TL/TL-24.PDF for additional information.

ADVERTISEMENT: is defined as, “the act of advertising something; a public announcement in a newspaper or on the radio, television, or internet advertising something such as a product for sale or an event.” In the Dealer License Section we are required by section 320.642, F.S. to publish in Florida Administrative Weekly publication notices received from licensed manufacturers, importers and distributors of their intent to establish or relocate franchise dealers.

AFFIDAVIT: is defined as “a written version of sworn statement”. When accepting affidavits, please make sure they are signed and on official letterhead of company submitting the affidavit.

Please refer to TL 01 at http://www3.flhsmv.gov/dmv/Proc/TL/TL-01.PDF for additional information.

AGREEMENT: is defined as, “a contract or arrangement, either written or verbal and sometimes enforceable by law. As part of the licensing requirements, the department requires all franchise dealers to have an agreement with a licensed manufacturer, importer, or distributor for any line-make they want to sell in Florida and notify the department in writing of their intent to allow the dealer to sale their line-make(s). The department also requires all licensed importers and distributors to have an agreement with the manufacturer of the line-make they want to import or distribute.

Dealer License Section’s A to Z Guide; Page1 Pursuant to section 320.60(1), Florida Statutes “Agreement” or “franchise agreement” means a contract, franchise, new motor vehicle franchise, sales and service agreement, or dealer agreement or any other terminology used to describe the contractual relationship between a manufacturer, factory branch, distributor, or importer, and a motor vehicle dealer, pursuant to which the motor vehicle dealer is authorized to transact business pertaining to motor vehicles of a particular line-make.

Pursuant to section 320.3202(8), Florida Statutes, “Manufacturer/dealer agreement” means a written agreement or contract entered into between a manufacturer and a dealer that fixes the rights and responsibilities of the parties and pursuant to which the dealer sells new recreational vehicles.

AGREEMENT ADDENDUMS: Not later than 60 days before the date a revision or modification to a franchise agreement is offered uniformly to a licensee’s motor vehicle dealers in this state, the licensee shall notify the department of such revision, modification, or addition to the franchise agreement on file with the department. In no event may a franchise agreement, or any addendum or supplement thereto, be offered to a motor vehicle dealer in this state until the applicant or licensee files an affidavit with the department acknowledging that the terms or provisions of the agreement, or any related document, are not inconsistent with, prohibited by, or contrary to the provisions contained in ss. 320.60-320.70. Any franchise agreement offered to a motor vehicle dealer in this state shall provide that all terms and conditions in such agreement inconsistent with the law and rules of this state are of no force and effect.

AMBULANCES: Ambulances, fire trucks, and school buses do not fall under the definition of motor vehicle as per section 320.60, F.S. Manufacturers of ambulances do not need a manufacturer’s license in Florida. Section 320.27, F.S., allows manufacturers of ambulances, fire trucks, and school buses to sell such vehicles directly to governmental agencies or to persons who contract to perform or provide firefighting, ambulance, or school transportation services exclusively to governmental agencies without processing such sales through dealers if such vehicles are not presently available through motor vehicle dealers licensed by the department.

ANSI: American National Standards Institute (ANSI) http://www.ansi.org is an organization which develops national safety standards for various products. In Florida a park trailer must meet either the ANSI standards or the United States Department of Housing and Urban Development standards depending on the length of the trailer. Section 320.01(1)7, F.S., defines a “park trailer” as, the “park trailer,” which is a transportable unit which has a body width not exceeding 14 feet and which is built on a single chassis and is designed to provide seasonal or temporary living quarters when connected to utilities necessary for operation of installed fixtures and appliances. The total area of the unit in a setup mode, when measured from the exterior surface of the exterior stud walls at the level of maximum dimensions, not including any bay window, does not exceed 400 square feet when constructed to ANSI A-119.5 Dealer License Section’s A to Z Guide; Page2 standards, and 500 square feet when constructed to United States Department of Housing and Urban Development Standards. The length of a park trailer means the distance from the exterior of the front of the body (nearest to the drawbar and coupling mechanism) to the exterior of the rear of the body (at the opposite end of the body), including any protrusions.





(Add information on RV – ANSI) APPLICATION: The Dealer License Section has two application forms for original licenses. The form HSMV 84256 is the Application for a License as a Motor Vehicle, Mobile Home, or Recreational Vehicle Dealer. This form can be downloaded at the Department’s website at http://www.flhsmv.gov/dmv/forms/BFO/86056.pdf. Form HSMV 84256 is the application form for Manufacturers, Importers, and Distributors. This application form can be accessed on the Department’s website at the following link at http://flhsmv.gov/dmv/forms/BFO/84256.pdf.

Renewal Form HSMV 86720 for all categories of dealers can be accessed at http://flhsmv.gov/dmv/forms/BFO/86720.pdf.

Renewal Form HSMV 86218 for recreational vehicle manufacturers, importers and distributors and mobile home manufacturers can be accessed a http://flhsmv.gov/dmv/forms/BFO/86218.pdf.

Renewal Form HSMV 86219 for motor vehicle manufacturers, importers and distributors can be accessed at http://flhsmv.gov/dmv/forms/BFO/86219.pdf.

Modification to a dealer’s license Form HSMV 86072 can be accessed at http://flhsmv.gov/dmv/forms/BFO/86072.pdf.

All Departmental forms can be accessed at http://flhsmv.gov/html/forms.html.

Section 320.27(3), F.S., defines application and fee requirements for motor vehicle dealers;

section 320.77(3), F.S., defines application and fee requirements for mobile home dealers; and section 320.771(3), F.S., defines application and fee requirements for recreational vehicle dealers.

AREA OF SALES RESPONSIBILITY: The area of sales responsibility is the geographical area agreed by the manufacturer and the dealer within which the dealer has the right to display and sell a particular line-make.

Pursuant to section 320.3202, Florida Statutes “Area of sales responsibility” means the geographical area agreed to by the recreational vehicle dealer and the manufacturer in the manufacturer/dealer agreement within which the dealer has the exclusive right to display or sell the manufacturer’s new recreational vehicles of a particular line-make.

Dealer License Section’s A to Z Guide; Page3 ASSEMBLED FROM PARTS (ASPT): “Assembled from parts” means a motor vehicle or mobile home that has been assembled from parts or combined from parts of motor vehicles or mobile homes, new or used. “Assembled from parts” does not mean a motor vehicle defined as a “rebuilt vehicle” in subparagraph 3., which has been declared a total loss pursuant to s. 319.30, F.S. Please refer to Procedure TL-43 for additional information.

ATV: All Terrain Vehicles are off-road vehicles that cannot be driven on the roadways in the state of Florida. The Department does not license dealers who sell ATVs. “ATV” means any motorized off-highway or all-terrain vehicle 50 inches or less in width, having a dry weight of 1,200 pounds or less, designed to travel on three or more non-highway tires, having a seat designed to be straddled by the operator and handlebars for steering control, and intended for use by a single operator and with no passenger.

Section 316.2074, F.S., states, “the term “all-terrain vehicle” means any motorized off-highway vehicle 50 inches or less in width, having a dry weight of 1,200 pounds or less, designed to travel on three or more non-highway tires, having a seat designed to be straddled by the operator and handlebars for steering control, and intended for use by a single operator with no passenger. For the purposes of this section, “all-terrain vehicle” also includes any “two-rider ATV” as defined in s. 317.0003.” Section 317.003, F.S., defines “ATV means any motorized off-highway or all-terrain vehicle 50 inches or less in width, having a dry weight of 1,200 pounds or less, designed to travel on three or more non-highway tires, having a seat designed to be straddled by the operator and handlebars for steering control, and intended for use by a single operator and with no passenger.” Section 317.003(9), F. S., defines “Two-rider ATV means any ATV that is specifically designed by the manufacturer for a single operator and one passenger.” Please refer to Procedure TL 44 at http://www3.flhsmv.gov/dmv/Proc/TL/TL-44.PDF for additional information.

ARTICLES OF INCORPORATION: Part of the licensing requirements for dealerships that are incorporated is the Articles of Incorporation. This document must be submitted with the original application.

ARTICLES OF ORGANIZATION: Part of the licensing requirements for companies that are limited liability companies is the Articles of Organization and Operating Agreement. This document must be submitted with the original application.

AUCTIONS: “Section 320.27, F.S., defines “Motor vehicle auction” to mean “any person offering motor vehicles or recreational vehicles for sale to the highest bidder where buyers are licensed

–  –  –

AUCTION DEALERS: The auction dealer license (license prefix “VA”) is applied for using the Application form HSMV 86056 which can be accessed on the department’s website at http://www.flhsmv.gov/dmv/forms/BFO/86056.pdf.

Auctions that sell motor vehicles and recreational vehicles, by the bid process, where buyers are licensed motor vehicle dealers, must obtain a VA license. Auctions that plan to sell motor vehicles retail are required to be licensed as an independent dealer with a VI prefix license.

Please Note: Licensed auction dealers shall not sell a vehicle to anyone other than a licensed motor vehicle dealer.

AUCTION PROVISIONS: Dealers who are licensed as motor vehicle auctions, holding a license prefixed with the letters VA are given special consideration by the legislature recognizing that auctions generally provide a forum for sellers to dispose of vehicles through the bid process.

Since auctions are not considered buyers or transferees or sellers or transferors in this auction process, Florida law exempts auctions from the need to complete reassignments unless an auction owns the vehicle. In lieu of completing the reassignment, the auction simply includes the auction name, address, and dealer license number in the appropriate spaces provided on the title certificates and reassignments. This information indicates that the vehicle has gone through the auction and that the auction is in the sequence between the seller and the next buyer. Any independent motor vehicle dealer (VI) wishing to use the bid process as a forum to sell by acting as an auction, without the benefit of an auction license (VA), must complete dealer reassignment forms on all transactions. Auctions (VA) may sell recreational vehicles taken in as a trade-in by a motor vehicle dealer only to a licensed recreational vehicle dealer.

AUTOMOBILES: An automobile is defined by Wikipedia as an “automobile, motor car, or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the transport of people rather than goods.” Section 320.01, F.S., defines a “Motor Vehicle” to mean: “Any automobile, motorcycle, truck, trailer, semitrailer, truck tractor and semitrailer combination, or any other vehicle operated on the roads of this state, used to transport persons or property, and propelled by power other than muscular power, but the term does not include traction engines, road rollers, such vehicles as run only upon a track, bicycles, or mopeds.

–  –  –

BANKS AND CREDIT UNIONS: Dealers are required to submit with their original application a surety bond or irrevocable letter of credit. These must be issued by a bank or credit union Dealer License Section’s A to Z Guide; Page5 authorized to do business in Florida. The following website indicates which banks are authorized in Florida: http://www.ncsl.org/default.aspx?tabid=16529 and the following website

indicate which credit unions are authorized in Florida:

http://www.ncua.gov/DataServices/FindCU.aspx.



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