Recent FLHSMV Changes Every Florida Motor Vehicle Dealer Should Know About

Staying compliant with the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) is essential for every licensed motor vehicle dealer in the state. The FLHSMV periodically updates rules, requirements, and enforcement practices that affect how dealers operate, process titles, complete registrations, and handle customer documentation. Knowing the latest changes ensures you avoid compliance issues, delays, and penalties.

Here are the most important FLHSMV updates and developments every Florida dealer should understand:

🔄 1. New Rules for Vehicle Registration Documentation

Starting September 23, 2024, FLHSMV updated several vehicle registration requirements relevant to dealers and customers: customers must now show certain types of valid ID and residential proof when registering vehicles. Specifically, acceptable documentation for vehicle registration now includes:

• An unexpired U.S. driver license or ID

• An unexpired U.S. passport or passport with a DHS stamp

• An unexpired I-94 or current permanent resident card

In addition to identification, customers must supply two proofs of residence showing their name and address. If they cannot, a “certifier” (someone they live with) can provide two proofs of residence plus a notarized Certification of Address form.

Why it matters for dealers: Dealers responsible for assisting customers with registration should be ready to collect correct ID and address documentation at the point of sale to avoid delays and customer frustration.

🪪 2. Continued License Plate & Frame Regulation Clarifications

Florida law on license plate frames and covers was clarified to ensure key identifying elements (plate numbers, decal, state name) are not obscured. While decorative frames are still permitted, they must not block any part of the plate’s alpha-numeric identifier or sticker.

Why it matters for dealers: When delivering vehicles, confirm that any added plate frames comply with the updated rules to avoid customer citations or compliance issues during inspections.

🔢 3. Change to Driver License & Identification Card Number Format

FLHSMV implemented legislation requiring a new format for driver license and identification card numbers statewide. A randomized number system enhances security and identity protection for Floridians. This system affects the numbering of all FL driver licenses and ID cards going forward, and customers renewing or replacing credentials will receive the new format.

Why it matters for dealers: Dealers should be aware of the updated ID format when collecting customer driver license information for sales contracts, registrations, and financing paperwork.

📜 4. Use of Dealer License Plates Clarified

In late 2023, FLHSMV issued a memo clarifying that dealers may operate vehicles on the highway using dealer plates as long as the vehicles are:

• In inventory and for sale, or

• Operated in connection with dealer business

Keeping a printed copy of this memo in vehicles using dealer plates is recommended in case law enforcement asks for verification.

Why it matters for dealers: This rule helps avoid misunderstandings with law enforcement and protects your staff when moving inventory.

🧾 Best Practices to Stay Ahead of FLHSMV Changes

To ensure you’re always compliant and prepared:

• Regularly check FLHSMV bulletins and updates

• Train staff on documentation and registration requirements

• Confirm ID and residential proofs at sale time

• Use checklists to ensure all compliance items are collected

• Maintain a compliance calendar for licensing and regulatory changes Work With Industry Experts Who Understand Florida Dealer Compliance

  Work With Industry Experts Who Understand Florida Dealer Compliance

  When it comes to Florida Motor Vehicle Dealers, All American Bonds and Insurance is the industry expert dealers trust. Staying compliant with FLHSMV changes doesn’t stop at paperwork—it also includes having the correct Motor Vehicle Dealer Surety Bond and Garage Liability Insurance in place at renewal time.

  All American Bonds and Insurance specializes in Florida dealer licensing requirements and works directly with dealers to ensure their bond and insurance renewals are handled correctly, on time, and at the best available rate. When it’s time to renew your Florida dealer license, working with a provider who understands both FLHSMV regulations and dealer operations can help you avoid delays, compliance issues, and unnecessary costs.

  For a smooth dealer license renewal, Florida dealers should secure their surety bond and garage liability insurance through All American Bonds and Insurance.