Indiana Vehicle Dealer Bond Overview
- Purpose: To protect the public from financial harm by auto industry professionals
- Who Needs It: All Indiana vehicle merchandisers, including dealers, auctioneers, distributors and salvagers
- Regulating Body: The Indiana Secretary of State — Auto Dealer Services Division
- Bond Amount: $25,000
- Minimum Price: $250, credit-based
What Is an Indiana Vehicle Merchandising Bond?
An Indiana vehicle merchandising bond protects consumers from fraudulent or deceptive acts by licensed motor vehicle businesses. The Indiana Secretary of State (SOS) requires a bond for businesses involved in vehicle or manufactured home sales.
Who Needs a Bond?
You need a $25,000 surety bond to apply for any of these licenses:
- Dealer
- Automobile Auction
- Manufacturer
- Converter Manufacturer
- Manufactured Home Sales Lot
- Watercraft Dealer
- Automotive Salvage Recycler
- Manufactured Home Community
- Distributor
- Transfer Dealer
The same bond form is used for all license types, but you’ll need to select your specific one when completing the form. Make sure you know your business type before purchasing your bond.
How Much Do Vehicle Dealer Bonds Cost in Indiana?
Indiana vehicle dealer or merchandising bonds start at $250, or 1% of the $25,000 coverage. We’ll run a soft credit check to calculate your exact rate. Qualified applicants often pay no more than 2% of the bond amount.
Apply for a free, no-obligation quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Indiana Auto Dealer Bond Work?
Like all auto dealer bonds, this bond creates a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| Principal | The vehicle merchandiser purchasing the bond |
| Obligee | The Indiana Secretary of State requiring the bond |
| Surety | The issuing surety provider |
This bond holds you financially responsible for following all applicable Indiana dealer laws. The following acts are strictly prohibited:
- Engaging in false or deceptive advertising
- Failing to meet vehicle delivery, warranty or tax obligations
- Misrepresenting vehicle information, including failing to disclose rebuilt or salvage status
- Violating dealer, manufacturer, or distributor franchise laws
If you break these terms, harmed parties can file bond claims. The surety will pay valid claims up to the full bond amount. However, you’ll need to refund the surety.
How Do I Get Bonded?
Once you fill out the form on this page, we’ll send you a free quote within one business day. You can pay the invoice at your convenience. We’ll email the official bond form directly to you.
You must file the bond form through the online Dealer Portal. The SOS doesn’t accept forms by mail or email.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, you’ll likely pay a higher premium. Quotes are free and don’t affect your score — apply today!
How Do I Renew My Vehicle Dealer Bond?
Indiana vehicle dealer bonds expire annually. We’ll send you reminders starting 90 days before renewal. Once you pay the attached invoice, you’ll receive a continuation certificate to file with the SOS.
Can I Edit My Bond Information?
You can change the information on your bond form by emailing [email protected]. If possible, we’ll issue a bond rider.
How to Get a Dealer License in Indiana
You need a new or used dealer license if you sell at least 12 vehicles in a year. This includes:
- Cars and trucks
- Semitrailers and trailers
- Off-road vehicles
- Snowmobiles
- Mini-trucks
- Recreational vehicles (RVs)
Then, complete the following steps to apply with the Auto Dealer Services Division:
- Register your business with the IN Secretary of State
- Complete a background check no more than 60 days before applying
- Get a $25,000 surety bond
- Purchase a liability insurance policy
- National Mobility Equipment Dealers Association Accreditation (mobility only)
- Submit your application, including all required documents and site photos
See the fee schedule for applicable costs. License fees typically range from $20–$30, but you’ll also need to consider the cost of dealer plates.
If you need a license other than a new or used vehicle dealer, visit the license applications page for more information.
Do I Need to Complete Pre-Licensing Education?
Only used dealers need to complete pre-licensing training. Register for the required course through the Indiana Independent Automobile Dealers Association. You’ll need to submit the completion certificate with your license application.
If your business specializes in mobility equipment, such as:
- Wheelchair-accessible vans
- Wheelchair lifts
- Ramps
- Hand controls
You’ll also need to get a National Mobility Equipment Dealers Association Accreditation.
