To obtain a dealer license in Indiana, you must secure an auto dealer bond. The Indiana Secretary of State, through the Auto Dealer Services Division, requires this bond as a condition for licensing. It protects consumers from dealer misconduct and provides the state with a financial guarantee for unpaid fees, costs, penalties, and fines.
Indiana Auto Dealer Bond at a Glance
- Purpose: To protect customers if a dealer causes financial harm through violations, and to guarantee payment of any state-imposed charges or penalties.
- Who Needs It: All new and used vehicle dealers and automobile auction dealers.
- Regulating Authority: Indiana Secretary of State, Auto Dealer Services Division
- Bond amount: $25,000
- Premium rate: The lowest rates typically start around 1% of the $25,000 bond amount ($250), though your actual cost depends on factors such as credit, financial history, and years in business.
The following license categories are subject to the Indiana auto dealer bond:
- New motor vehicle dealer – Sells or negotiates 12+ new vehicles per year (excluding manufactured homes).
- Used motor vehicle dealer – Sells or negotiates 12+ used vehicles in 12 months.
- Automobile auction company – Coordinates or hosts auctions selling more than 3 vehicles or watercraft per year.
- Transfer dealer – Transfers ownership of 12+ motor vehicles per year as a result of primary business activity (typical examples: financial institutions and insurance companies handling repossessed or salvaged vehicles).
- Distributor – Supplies new motor vehicles to licensed dealers (not a manufacturer).
- Mobile home community – Leases lots where 5+ manufactured/mobile homes are placed as residences.
- Manufactured home sales lot – Sells manufactured or mobile homes.
- Manufacturer – Builds or assembles new motor vehicles or components for sale to distributors, dealers, or consumers.
- Converter manufacturer – Modifies a vehicle structurally or functionally after its original manufacture.
- Watercraft dealer – Sells or promotes 6+ watercraft or related trailers per year.
- Automotive salvage recycler – Processes damaged or inoperable vehicles to recover and sell usable parts.
How Much Does an Indiana Auto Dealer Bond Cost?
These are the statewide bond requirements, which apply uniformly:
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| All dealers | $25,000 | Starts at $250 |
While Indiana law sets the bond amount at $25,000, the bond premium - the price you actually pay- is a small percentage of the whole bond amount. The premium reflects the surety’s assessment of your credit score, financial stability, outstanding debts, assets, and experience in the auto dealer industry.
Applicants with strong credit and solid financials typically qualify for premiums between 1% and 3% of the bond amount. Those with average financial profiles usually see rates in the 3% to 5% range, while applicants with weaker credit or higher financial risk may receive rates up to 10%.
If you fall into the higher-risk category, Bryant Surety Bonds can help through its Bad Credit Surety Bond Program, which works with top-rated sureties to offer affordable premiums even for applicants with less-than-perfect credit.
Whether your finances are strong or need improvement, our Surety Bond Cost Calculator lets you estimate your bond cost in seconds. Just enter your bond type, state, amount, and credit score to understand what to expect before applying.
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How to Get an Indiana Auto Dealer Bond
Getting your Indiana auto dealer bond is fast, straightforward, and fully online. Most applicants complete the process in three simple steps:
- Submit a quick online application. Provide basic details such as your dealership name, contact information, and the bond amount required by the state. \
- Receive a customized quote - free and with no obligation. We’ll review your information and send you your personalized rate, often on the same business day.
- Get your bond certificate. After you approve the quote and make payment, we issue your official Indiana auto dealer bond immediately so it’s ready to file with your license application or renewal.
Most bonds are issued within 24 hours, helping you avoid delays or compliance issues. As a licensed Indiana provider (license #3450330), Bryant Surety Bonds works with top-rated surety companies to secure the best rates you qualify for.
How Do You Get an Indiana Auto Dealer License?
To apply for a dealer license in Indiana, you must submit the following through the state’s online portal:
Standard requirements (most dealer types):
- $25,000 surety bond
- License application fee
- Proof of liability insurance
- Business entity documents (via INBiz)
- Background check
- Zoning affidavit
- Retail Merchant Certificate
- Site photos of the business location
- Government-issued photo ID
Additional requirements:
- First-time used dealers: Dealer Training Completion Certificate
- Mobility dealers: NMEDA accreditation
All documents must be uploaded electronically through the Indiana Secretary of State’s Auto Dealer Services portal.
For more information, check out our dedicated Indiana Auto Dealer License Guide page.
Indiana Auto Dealer Bond Renewal
Indiana auto dealer bonds must be renewed each year to keep your dealer license active. Because the surety bond is a required component of license renewal, you must ensure your $25,000 bond is renewed before its expiration date so there is no lapse in coverage.
Per 75 IAC 6-2-2.2, dealers must submit proof of an active bond—as well as the applicable renewal fee and liability insurance—when completing the annual license renewal. If requested, the state may also require documentation confirming the dealer is in good standing with state authorities.
Renewing your bond on time ensures uninterrupted compliance and prevents delays, penalties, or issues with your license renewal.
Important Update for Indiana Auto Dealers
Beginning July 1, 2025, Senate Bill 484 requires recreational vehicle (RV) dealers and manufacturers to formalize their business relationship through a written contract. The law also outlines the conditions under which either party may terminate the agreement, including buyback provisions, rules for transferring or inheriting the agreement, and updated standards for warranty obligations.
FAQs
Can I transfer my Indiana auto dealer bond to a new business location or entity?
Yes, but only if the ownership structure remains the same. If you change your business entity (for example, from a sole proprietorship to an LLC), you will need a new bond issued under the new legal name.
Can multiple dealer locations operate under the same $25,000 bond?
No. Each licensed dealer location must have its own $25,000 surety bond, even if owned by the same business.
Will applying for an Indiana auto dealer bond affect my credit score?
No. Sureties review your credit using a soft inquiry, which is invisible to lenders and does not appear on the credit report they pull. You can request and compare quotes freely without any impact on your credit standing.
How long does it take to get an Indiana auto dealer bond?
Quickly—most applicants are quoted on the same business day they apply. After you accept the quote and complete payment, the bond is typically issued within 24 hours, so you can file the original signed Form SF 53966 with the Auto Dealer Services Division alongside the rest of your dealer license application.
Can I get an Indiana auto dealer bond if I have bad credit or past financial issues?
Yes, in most cases. Through our Bad Credit Surety Bond Program, applicants with low credit scores, prior bankruptcies, or other financial setbacks can still get bonded for the $25,000 Indiana requirement. Premiums for bad-credit applicants typically run higher—often in the 5%–10% range—but our network of top-rated sureties allows us to find competitive pricing even in difficult situations.
Can I get an Indiana auto dealer bond without an SSN?
A US taxpayer ID is needed to underwrite the bond. The Indiana $25,000 auto dealer bond is not an instant-issue, flat-rate bond — the surety has to run a soft credit pull on each owner listed on the application, and credit bureaus key those reports to either a Social Security Number or an Individual Taxpayer Identification Number (ITIN). Applicants without an SSN can typically still qualify by providing an ITIN.
Can I get an Indiana auto dealer bond if I have a criminal record or pending legal issues?
In most cases, no. Surety underwriters review each owner's background as part of the application process, and a criminal record—particularly involving fraud, theft, financial crimes, or motor vehicle offenses—or active legal proceedings will typically disqualify an applicant. This is because the surety is taking on financial risk that the principal will operate the dealership lawfully, and unresolved or serious legal history makes that risk difficult to justify. Even if a surety were willing to consider the application, the Indiana Secretary of State's Auto Dealer Services Division also conducts its own criminal background check on every owner and officer, and certain offenses can independently bar you from holding a dealer license. If you're unsure how your situation might be viewed, reach out before applying, and we can discuss your options.
