Florida Car Consignment Rules & Dealer Requirements | 2025 Guide

Car consignment in Florida is legal, but dealers must follow clear rules and best practices to protect both sellers and buyers. These Florida car consignment rules, dealer requirements, and best practices (updated for 2025) cover written agreements, powers of attorney, title & odometer handling, lien payoff, insurance, fee disclosure, and payment timing.

Dealer License Requirements

• Only licensed Florida motor vehicle dealers may legally consign and sell vehicles.

• Private individuals cannot offer consignment services without a dealer license.

• Licensed dealers cannot consign vehicles to one another.

• The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) regulates licensing and compliance.

Source: FLHSMV Motor Vehicle Dealers

Source:  How to Become a Used Car Dealer in Florida

Written Agreement and Required Power of Attorney Forms

A written agreement and power of attorney forms — HSMV 82053 and HSMV 82995 — are required for each consigned vehicle.

The dealer consignment agreement should include:

• Seller’s name, contact information, vehicle details (VIN, mileage, title status).

• Dealer’s responsibilities (marketing, storage, test drives, negotiating sale).

• Vehicle eligibility criteria and requirements (vehicle condition, safety, inspections, other).

• Commission or fee structure.

• Timing and process for seller funding once the vehicle is sold.

• How an outstanding lien will be paid, if applicable.

• Terms for cancellation.

• Seller’s insurance requirements while on consignment.

Requires signatures by both parties. Provide seller with a copy; dealer keeps the original.

Source: Florida Statutes – Motor Vehicle Dealers

Clear written agreements are the foundation of Florida consignment dealer requirements and help both parties avoid disputes.

Title, Odometer & Power of Attorney Handling

• The vehicle title remains in the seller's name until sold. The dealer must possess a duly assigned title or other legal proof of ownership for the vehicle. If there is a lien on the vehicle, a copy of the front and back of the title is required.

• Odometer disclosure is required under federal and Florida law. Vehicles model year 2011 and newer are exempt after 20 years; vehicles model year 2010 and older are exempt after 10 years.

• Dealer must obtain two distinct signed power of attorney forms from the seller at the time of consignment to transfer title once the vehicle is sold: 

  • Secure Power of Attorney with Odometer Disclosure (Form HSMV 82995) and

  • Power of Attorney for a Title (Form HSMV 82053)

Best Practice: Dealer should retain and store the unsigned original title if the seller is agreeable. If not, the dealer should make a copy (front and back).

Escrow / Consignor Payment Timing Rules

• Florida does not mandate a separate escrow account for consignment sales.

• Florida does not mandate a statutory deadline for paying sellers (consignors). Instead, Florida consignment payment rules are determined by the written agreement.

Best Practice: To protect both parties, the dealer agreement should clearly state the payment timeline. Many reputable dealers remit net sale proceeds to sellers within 24–48 business hours after the dealer has been funded by the buyer or the buyer’s lender.

Best Practice: Many reputable dealers voluntarily use an escrow account to hold seller funds if the dealer accepts vehicles with "negative equity." 

Keep all proceeds handling transparent and documented.

Insurance & Test Drives

• Dealers must carry garage liability insurance covering consigned vehicles.

• Sellers should confirm whether their personal policy provides any residual coverage while the vehicle is in the dealer’s possession.

• Dealers are responsible for test drive coverage under their policy.

Best Practice: Confirm with your insurance agent/underwriter that your policy specifically covers "owned and consigned" vehicles. Require sellers to maintain full coverage (including comprehensive) while their vehicle is on consignment. Obtain a copy of the seller’s insurance card for verification and have the seller initial the insurance section of the agreement.

Lien Payoff Process

Vehicles with open loans can be consigned in Florida. There is no timeline requirement specifically stated for handling payoffs on consignment vehicles. However, since Florida dealers are required by state law to fully pay off a lien on a trade-in or directly purchased private party vehicle within 10 business days, dealers should handle the payoff process for consignments the same. The dealer's lien payoff process and timeline should be included in the consignment agreement with the seller.

Best Practice: At the start of the consignment, the seller should provide:

• Lender’s contact information
• A current payoff statement
• Written authorization for the dealer to process payoff

It’s also important to check for negative equity — when the loan payoff is higher than the expected net sale proceeds (estimate sale price minus the dealer’s commission, fees, and charges). If negative equity exists, the dealer should collect the shortfall from the seller upfront and hold it in trust. This ensures the lien can be fully satisfied and the title can be released without delays once the vehicle is sold.

Proper lien payoff handling is central to Florida car consignment dealer requirements and ensures a smooth title transfer for both seller and buyer.

Fee Disclosure Rules

• All fees and commissions must be clearly disclosed in writing.

• Disclose flat fees, percentages, reconditioning costs, and any storage/marketing fees.

Cancellation & Cooling-Off Notes

• Sellers may terminate the consignment agreement at any time, unless a specific contract clause states otherwise.

• Any cancellation terms (notice period, retrieval fees, reimbursement for dealer expenses) must be spelled out in the agreement.

FAQs

Can a private seller consign without going through a dealer?
No. Only licensed Florida dealers may legally consign vehicles.

How long does a Florida dealer have to pay the seller after sale?
There’s no statutory deadline. Many dealers follow the 10-day trade-in payoff standard, while best practice is paying consignors within 24–48 business hours after buyer funds clear.

Can a car with a loan still be consigned?
Yes, as long as the dealer handles lien payoff at closing.

Last reviewed: September 2025

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⚠️ Important Notice

This page is provided by Retail My Ride for general informational purposes only. It is not legal advice. Car consignment laws and dealer requirements may change at any time. Always confirm the latest rules with your state DMV, licensing authority, or qualified legal counsel before making decisions.