Florida guide

Buy here, pay here contracts, from signing to payoff

How a buy here, pay here deal runs, from the retail installment contract to collections, late fees, repossession and an early payoff.

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The short version

The retail installment contract carries the Truth in Lending (opens the official site in a new tab) disclosures, the payment schedule and your terms.
Your dealership is the lienholder on the title.
Late fees, grace days and any prepayment penalty are terms you set, so have your attorney check them against Florida law.
An early payoff should close the account at zero, with the unearned interest taken off.

Before you finance in house

Florida's Office of Financial Regulation licenses motor vehicle retail installment sellers under chapter 520 (opens the official site in a new tab) of the Florida Statutes. Make sure your license is current before you write contracts.

Documentary stamp tax applies to the note on a financed sale (section 201.08 (opens the official site in a new tab)). A cash or wholesale sale creates no note, so none is owed on those.

What the contract sets

The amount financed, the APR, the number of payments and how often they are due.
The Truth in Lending (opens the official site in a new tab) disclosures: finance charge, APR, amount financed and total of payments.
Your late fee and the grace days before it applies, a returned payment charge, and whether there is a prepayment penalty.
What happens if the buyer defaults, and the insurance they must keep on the vehicle.

The payment schedule should add up exactly to the total of payments printed on the contract. Your dealership goes on the title as the lienholder.

A generated contract doesn't make your terms legal by itself. Have your attorney review your late fee, prepayment penalty and repossession terms under Florida law before you use them.

Collecting on the account

Keep every payment on the account’s schedule, so you can see at a glance who is past due and by how much.
Record a payment on the day the money came in, whether it was cash at the desk or a card.
Log each call with the payment they promised and a date to follow up.
Set the buyer up on automatic payments built from the contract’s own terms.

Late payments and repossession

Late fees apply to payments not made within the contract's grace days. A repossession doesn't settle the balance by itself: the account stays open and past due until you settle it or write it off.

Florida's repossession affidavit is Form HSMV 82043.

Early payoffs and trade-ups

Give the buyer a payoff quote good for 10 days.
On an early payoff, the unearned finance charge is rebated, so the account closes at exactly zero. A partial payment doesn't rebate any interest.
If they're trading up, the remaining balance can roll into their next deal.

How My Dealer Jacket handles it

In My Dealer Jacket, the same deal jacket writes the retail installment contract, builds the payment schedule, sets up automatic payments and shows who's behind.

See buy here, pay here

Sources

Each one links to the official text.

This guide explains Florida's rules in plain language. It isn't legal advice, and rules change: check with FLHSMV or your attorney before relying on it.

Questions dealers ask

Who is the lienholder on a buy here, pay here deal?

Your dealership.

Can buyers pay automatically?

Yes. A recurring payment link built from the contract's terms charges each payment on its due date.

How are late fees charged?

At the rate in the contract, on payments not made within its grace days. The terms are yours to set, within Florida law.

Does repossessing close the account?

No. It stays open and past due until you settle the balance or write it off.

How do I give a payoff amount?

Print or send a 10-day payoff quote. When the buyer pays early, the unearned interest comes off and the account closes at zero.

Let the paperwork check itself.

Set up your dealership and file your next Florida deal with the rules built in.

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