Florida Wholesale & Auction Ground Rules for Dealers

Disclaimer: This content is for informational purposes only and does not constitute legal, financial, or insurance advice. Requirements may change. Verify current rules with FLHSMV or a licensed professional.

Working wholesale or at auction? These are the Florida rules that trip dealers up.

Key points in 30 seconds

  • Wholesale dealers sell only to licensed dealers/auctions; no retail and no dealer plates.
  • Auction dealers need an independent license to retail vehicles to the public.
  • Only licensed dealers or bona fide dealership employees can bid at auction.
  • Franchised dealers can sell only approved line-makes; adding brands requires a formal approval and protest window.

Who this applies to

  • Wholesale dealers and auction operators.
  • Retail dealers sending employees to bid at auction.
  • Franchised dealers adding or changing line-makes.

Wholesale dealer basics

  • Wholesale dealers are exempt from display (lot) requirements because they don’t retail to the public.
  • They cannot use dealer plates.
  • They may sell only to licensed dealers or auctions—never to retail consumers.

Auctions and bidding

  • Only licensed dealers or bona fide dealership employees authorized to bid may buy at auction.
  • Auction dealers cannot retail to the public. To retail used vehicles, they must also hold an independent dealer license.

Franchised dealer line-makes

  • A franchised dealer may sell only the line-make(s) approved on its license.
  • Adding a line-make requires manufacturer approval, publication in the Florida Administrative Register, a 30-day protest window, and then an application on Form 86072 once approved (see s. 320.642, F.S.).

Buses and who needs a license

  • FLHSMV does not license bus manufacturers/importers/distributors, because buses don’t meet the motor vehicle definition in s. 320.60(10).
  • Selling buses requires an independent motor vehicle dealer license.

RVs taken in trade

  • Independent and franchised motor vehicle dealers may sell RVs taken in trade, but selling new/used RVs otherwise requires an RV dealer license.

Examples

  • Wholesale-only lot: Cannot plate vehicles with dealer plates and cannot sell to retail buyers; sales limited to dealers/auctions.
  • Auction employee bidding: Must be a bona fide employee authorized by the dealership; friends/family can’t bid on behalf of the store.
  • Franchise adding a brand: Needs manufacturer approval, FAR publication, protest window, then submits Form 86072 before selling the new line-make.

Quick FAQ

  • Can wholesale dealers use dealer plates? No—dealer plates are not allowed for wholesale-only dealers.
  • Who can bid at an auction for a dealership? Licensed dealers or bona fide employees authorized to bid.
  • Can auction dealers retail to the public? Only if they also hold an independent dealer license.
  • How do franchised dealers add a new line-make? Get manufacturer approval, wait out the FAR protest window, then file Form 86072 to update the license.

Source

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