Indiana Auto Dealer Bond

Unlike most states that use the DMV or BMV, Indiana dealer licensing is handled through the Secretary of State's Auto Dealer Services Division at 302 West Washington Street in Indianapolis. The BMV handles title and registration services, but the Secretary of State is responsible for issuing and regulating dealer licenses under Indiana Code Title 9, Article 32. This separation of responsibilities is unusual -- most states combine dealer licensing and vehicle registration under a single agency.

Indiana auto dealer bonds ($25,000) typically cost $250-$2,500 annually. With excellent credit (750+), expect $250-$500 (1-2%). Good credit (680-749) costs $500-$1,000 (2-4%). Fair credit (620-679) ranges $1,000-$1,750 (4-7%). Lower credit may require up to $2,500 (10%). The $25,000 amount makes Indiana one of the more affordable states for dealer bonds.

As of October 1, 2024, all bond and insurance updates must be completed online through the Indiana Dealer Portal at dealers.sos.in.gov. The Secretary of State no longer accepts bond or insurance updates via US mail or email. This means your surety must submit bond documents electronically through the portal. We handle this submission on your behalf as part of the bond issuance process.

Indiana requires a minimum 1,300 square feet of display capacity for 10 or more vehicles, a separate furnished office of at least 100 square feet, permanent signage, customer parking, and adequate lighting. The location must be in Indiana, accessible to the public, and open a minimum of 30 hours weekly. Residential or temporary locations are prohibited under Indiana administrative rules.

Yes. First-time used car dealers must complete dealer training through iiadaeducationalcourses.com before obtaining their license. This is a one-time requirement that does not apply to dealers who have previously held an Indiana dealer license. The training covers Indiana dealer laws, consumer protection, and operational requirements.

Anyone who sells, offers to sell, or advertises for sale at least 12 motor vehicles within a 12-month period needs an Indiana dealer license. This threshold applies to cars, semitrailers, trailers, off-road vehicles, snowmobiles, mini-trucks, and recreational vehicles. Selling fewer than 12 vehicles per year does not require a dealer license.

The $25,000 bond under IC 9-32-11-2 is in favor of the Secretary of State and serves two purposes: it secures payment of fines, penalties, costs, and fees assessed by the Secretary of State, and it compensates purchasers who incur damages from dealer violations of IC 9-32. The bond is conditioned on the dealer's compliance with all provisions of the laws governing dealer licenses.

Yes. Dealers that originate credit sales (arrange financing with third-party lenders or offer buy-here, pay-here programs) must also register with the Indiana Department of Financial Institutions in addition to their dealer license. This is a separate requirement from the Secretary of State dealer licensing.

Yes. We work with specialized carriers for higher-risk applicants and regularly approve applicants with credit scores as low as 500. Indiana's $25,000 bond amount is relatively low, making it achievable even with challenged credit. Rates for the most difficult cases typically run 8-10% ($2,000-$2,500).