Many dealers use the phrase “buy here, pay here” to describe this financing option. As a dealer you can finance to individuals that are interested in this service but of course remember to have proper licensing before you do so. There are certain statutory requirements which the dealer must fulfill.

Finance Licenses are granted by the State of Florida’s Office of Financial Regulations (OFR). OFR and are regulated by the Florida statutes regarding financial services. Offices are located in Tallahassee, Orlando, West Palm Beach, Miami, and Tampa. These offices monitor a diverse set of financial services which include but are not limited to – businesses including banks, credit unions, mortgage loan originators, finance companies, and pay-day lenders.

As a new applicants you need to log on to the Florida Department of Financial Services website to apply at www.flofr.com and access document OFR-520-01: http://www.flofr.com/PDFs/OFR-520-01.pdf , application for a license. Before applying it is your responsibility to determine which license(s) are needed regarding your situation, and if any are applicable to you. Remember that these requirements cover both the Franchised and Independent Dealers. Buy Here Pay Here dealers are not excluded/exempt from the requirements. They must also adhere to the regulations set forth by the department governing these licenses.

The title of the vehicle that is being sold, must be transferred by the dealer to the buyer as explained in Unit 5. However, a lien recorded in favor of the dealer will be placed on the vehicle, so that if the buyer fails to follow the contract, the vehicle can  be reclaimed (have it repossessed) by the dealer. As a dealer the title transfer should not be delayed, even when the vehicle has not been paid in full. Note: the thirty (30) day title transfer requirement still remains valid, even when the customer owes for anything (outstanding balance to be paid by the buyer). Any dealer that is interested in his own financing by himself has to obtain a license from the Florida Department of Financial Services.