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How to Verify a Junk Car Buyer in Florida
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The Short Answer
In Florida, a business that buys junk cars should hold one of two credentials. A salvage motor vehicle dealer holds a license from the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). A secondary metals recycler, meaning a business that buys scrap metal and junked vehicles for recycling, must register with the Florida Department of Revenue. A buyer with neither credential cannot lawfully complete the paperwork that protects you as the seller.
This guide explains each credential and the warning signs of an unlicensed buyer. Questions about our own credentials are welcome; call (561) 203-8970.
Two Agencies, Two Credentials
Florida divides oversight between two agencies. A 2019 Florida Senate analysis of SB 974 states the division directly: salvage motor vehicle dealers must be licensed by the Department of Highway Safety and Motor Vehicles, while secondary metals recyclers are licensed by the Department of Revenue (Florida Senate Bill Analysis, SB 974).
Salvage Motor Vehicle Dealer (FLHSMV)
FLHSMV issues dealer licenses by class. The salvage dealer class covers businesses that acquire salvaged or wrecked motor vehicles to resell them or their parts. FLHSMV describes the classes on its types of licenses page.
Secondary Metals Recycler (Department of Revenue)
Recyclers register on form DR-1S. The Department of Revenue registration application sets a fee of $6 per location per license type, requires a fingerprint background check for owners with a controlling interest, and produces a Certificate of Registration (form DR-11S) that expires September 30 each year. Section 538.25 of the Florida Statutes requires the registration to be displayed conspicuously at the business.
A common misconception is that Florida’s Department of Agriculture and Consumer Services regulates recyclers. A 2015 bill proposed moving that oversight, but it did not become law; the Department of Revenue remains the registering agency.
What an Unregistered Buyer Risks, and What You Risk
The Department of Revenue’s Tax Information Publication 08A01-07 explains that doing business as a secondary metals recycler without first registering is a third-degree felony. Section 538.25 also allows civil fines of up to $10,000 per knowing violation.
For the seller, the risk is practical. An unregistered buyer cannot file the derelict vehicle application, cannot report the vehicle to NMVTIS (the National Motor Vehicle Title Information System), and leaves no record showing that the car left your ownership. If that vehicle is later abandoned or resold, the trail leads back to you.
Warning Signs to Watch For
- No fixed business address. Florida’s 2012 amendments, summarized in Tax Information Publication 12A01-08, require recyclers to operate from a fixed address; hotel rooms, vehicles and post office boxes do not qualify.
- No paperwork for a vehicle without a title. A licensed buyer must complete form HSMV 82137 with you and copy your ID, as explained in our Florida no-title guide.
- Payment to someone other than you. FLHSMV procedure TL-35 requires payment by check or money order to the seller, not the transporter, when the seller is not the owner of record.
- Pressure to keep your plate on the car. The plate belongs to you; see our guide on plates and insurance after the sale.
Questions to Ask Before Pickup
Ask the buyer for its FLHSMV dealer license number or its Department of Revenue registration, the street address of its yard, how it will pay you, and whether it reports purchases to NMVTIS. A legitimate buyer answers all four without hesitation. AD Buys Junk Cars operates from a fixed yard at 1841 7th Ave. N., Suite A-2, in Lake Worth Beach, and we are glad to answer every one of these questions before we schedule a tow.
Frequently Asked Questions
Which agency licenses junk car buyers in Florida?
Salvage motor vehicle dealers are licensed by FLHSMV, and secondary metals recyclers register with the Florida Department of Revenue under Section 538.25 of the Florida Statutes.
Is the Florida Department of Agriculture involved in recycler registration?
No. A 2015 bill proposed moving recycler oversight to that department, but it did not pass. The Department of Revenue issues the registration.
How much does a recycler registration cost?
The Department of Revenue’s form DR-1S lists a fee of $6 per location per license type, plus fingerprint background check costs.
How many licensed salvage dealers operate in Palm Beach County?
No public count exists. FLHSMV and the Department of Revenue do not publish a downloadable total, so verify each buyer individually.
Related Guides
- How to Sell a Junk Car Without a Title in Florida
- Catalytic Converter Rules When Selling a Junk Car
- What Happens to Your Car After It Is Junked
See every topic on our Junk Car Selling Guides page, or find your town on Areas We Serve.
Sources
- Florida Senate, Bill Analysis SB 974 (2019)
- Florida Department of Revenue, Form DR-1S
- Florida Department of Revenue, TIP 08A01-07 (2008)
- Florida Department of Revenue, TIP 12A01-08 (2012)
- Florida Statutes, Section 538.25
- FLHSMV, Types of Dealer Licenses
About the Data on This Page
No public count of licensed Florida salvage motor vehicle dealers or registered secondary metals recyclers exists; neither FLHSMV nor the Department of Revenue publishes a downloadable total or a public lookup for recycler registrations. The Department of Revenue guidance cited here dates from 2008 and 2012, and the underlying requirements remain in Chapter 538 of the Florida Statutes. Information here is a plain-language summary for consumers, not legal advice. Last reviewed November 2026.
