Indiana Auto Dealer Bond Overview

Everyone who wishes to become a new- or used-car dealer in Indiana must obtain a dealer license. An important part of the application is the Indiana auto dealer bond– a regulatory tool designed for consumer protection.

Auto dealer bonds are like most other type of surety bonds in that they act as a safeguard to your clients and the state. Surety bonds are a three-party binding agreement between: a principal (the car dealer), an obligee (the state of Indiana) and the surety (a bonding company). The agreement is guaranteed by the bonding company that underwrites the dealer bond. In doing so, the surety vouches for the dealer’s trustworthiness and ability to repay potential claims.

A claim against your auto dealer bond can arise if you dealership engages in fraudulent or unethical business practices, or is in violation of state or federal regulations. It’s important for you and your staff to be up-to-date with all applicable laws, so you can stay away from claims. A valid claim can hurt your reputation and cause financial loss.

Here is a short overview of the Indiana auto dealer bond requirement:

  • Surety Bond Name: Indiana Auto Dealer Bond
  • Surety Bond Amount: $25,000
  • Obligee: Indiana Secretary of State
    Auto Dealer Services Division Indiana Government Center South 302 W Washington Street, Room E018 Indianapolis, IN 46204
  • Expiration Date: Expires when the license does

Read on for more information about the cost of getting a dealer bond, how to get one if you have bad credit, and how to apply online with Bryant Surety Bonds.

Indiana Auto Dealer Bond Cost

Again, the bond amount for Indiana auto dealer bonds is $25,000. This sounds like a large sum, but it isn’t the sum required from aspiring auto dealers. Rather, $25,000 is the maximum compensation a claimant can receive if your dealership is in violation of the bond agreement.

Dealer bonds are obtained through the payment of bond premiums each time the surety bond needs to be renewed. Your bond premium is calculated by the bonding company, based on several factors about your business. The most important one of them– without a doubt– is your personal credit score. Other factors are optional but providing them can have a positive effect on your application:

  • Strong asset profile
  • Strong financial statements
  • Industry experience

If your credit score is high, you can expect premiums between 1,5% and 3% of the total bond amount.

Surety Bond Cost Based on Credit Score
Surety Bond Name Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Indiana Motor Vehicle Dealer Bond $25,000 $250-$500 $375-$750 $500-$1,000 $750-$1,750

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

In addition to these factors, you should also carefully consider the surety bond agency you work with. Bryant Surety Bonds works only with A-rated and T-listed bonding companies, which is a guarantee that your auto dealer bond will be accepted by the Secretary of State. Thanks to our partnerships with multiple sureties, we can shop for the bond on your behalf and negotiate the lowest rates for you.

On the right, you can find a surety bond cost calculator, where you can quickly get an estimate of your auto dealer bond premium. When you are ready to apply, you can use our user-friendly online application or call one of our agents at (866)-450-3412 if you need any assistance.

For more tips on reducing your premiums, check out our Surety Bond Cost page.

Bad Credit Dealer Bonds

Many applicants are worried that their bad credit score will stand in the way when they apply for an auto dealer bond. While it’s true that certain bond providers are unwilling to underwrite bad credit applicants, Bryant Surety Bonds has a Bad Credit Program designed to suit the needs of such applicants. Through our program, you’ll still get a surety bond by the same strong bonding companies.

Premiums for bad credit applicants generally do not exceed 7% of the total bond amount. If your credit score improves, premiums usually decrease when bond renewal is due.

Indiana Dealer License: Application and Renewal

Completing your dealer license application involves a few more steps. Here are some of them:

  • Buy liability insurance
  • Submit National Criminal History Background Check
  • Have an approved business location with a dealer’s office housed on its premises
  • Display a clearly visible sign with the name of your dealership and you business hours
  • Submit a Zoning Affidavit
  • Submit a copy of a valid ID
  • Submit photographs of your office and display buildings
  • Pay all applicable fees

When renewal is due, you will have to repeat some of these steps and renew your auto dealer bonds as well. If you choose Bryant Surety Bonds as your surety agency, you can rest assured that you won’t miss a deadline, because we always send out bond renewal reminders ahead of time.

Get Your Indiana Auto Dealer Bond Today

All you have left to do is apply online, and you’re on your way to getting your Indiana auto dealer bond. The application takes just a few minutes to complete. We will be in touch with you to let you know what documentation we need to process and finalize your application.

Once we have your bond form signed by the bonding company, we will send it by mail, so you can attach it towards your dealer licensing application. You can also request copies for your personal records.

Got more questions? Call us at (866)-450-3412 and we will be happy to help you out!

About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.