Indiana Motor Vehicle / Auto Dealer Bond Cost

While $25,000 might seem like a large amount to pay, in reality, you only need to pay a percentage of it to get bonded, which is called the bond annual premium. The surety company will look at several factors to determine your motor vehicle dealer bond cost, most importantly, your credit score. Factors such as years licensed and years of industry experience will also play a factor in your dealer bond cost.

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• If your credit score is above 650, you’ll likely have to pay between .75% and 2% of the bond amount.

• For applicants with credit scores between 600 and 649, the rates range between 2.5% and 4%.

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Who Needs an Indiana Motor Vehicle Dealer License?

If you’re planning to sell cars, trucks, trailers, motorcycles, or recreational vehicles in the State of Indiana, you may be legally required to obtain a motor vehicle dealer license. Whether you’re selling new or used vehicles, operating without the proper license can result in fines, legal action, and delays in getting your business up and running.

New Motor Vehicle Dealer License Requirements

You must apply for an Indiana new motor vehicle dealer license if you sell, advertise, or offer to sell at least 12 new vehicles in a 12-month period. This includes:

• Cars and trucks

• Semitrailers and trailers

• Off-road vehicles and snowmobiles

• Mini-trucks and recreational vehicles (RVs)

Used Motor Vehicle Dealer License Requirements

If you plan to sell 12 or more used vehicles in a 12-month period, you must obtain an Indiana used car dealer license. This license covers:

• Used cars, trucks, and SUVs

• Used trailers, off-road vehicles, and RVs

• Snowmobiles, mini-trucks, and similar vehicles

📌 Important: All vehicle dealers in Indiana must comply with Indiana Code 9-32 and Indiana Administrative Code Title 75. You can find the official laws and rules on the Indiana General Assembly website at iga.in.gov.

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Indiana Dealer License Application Checklist

To apply for your Indiana dealer license, you'll need to submit a complete application along with required documentation. Missing or incomplete paperwork can delay your approval.

Required Documents Include:

• Completed Application Form (Available at dealers.sos.in.gov)

• Background Check (No older than 60 days)

• Business Registration with INBiz

• Vehicle Dealer Surety Bond 

• Garage Liability Insurance Certificate

• Retail Merchant Certificate (From the Indiana Dept. of Revenue)

• Zoning Affidavit (Form SF 55936, not older than 90 days)

• Proof of dealer education (Required for first-time used dealers)

• Photo ID and photos of the dealership location

• Applicable license fees

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Indiana Dealer Location Requirements

The State of Indiana has strict location and facility requirements for licensed dealers. Your dealership cannot be located at a residence or inside a strip mall, and it must:

• Be located in Indiana

• Be open to the public at least 30 hours/week

• Have a minimum 1,300 sq. ft. lot with room to display 10+ vehicles

• Include an office space at least 100 sq. ft., fully furnished with working utilities

• Feature a permanent, visible sign in the dealership’s legal name

• Include customer parking

• Be a dedicated auto dealership (no secondary businesses)

Common Indiana Dealer License Types

Here are some of the most common types of Indiana dealer licenses:

• New Car Dealer License – Sell new vehicles directly from manufacturers.

• Used Car Dealer License – Sell pre-owned vehicles to the general public.

• Wholesale Dealer License – Sell vehicles to other licensed dealers only.

• RV Dealer License – Sell recreational vehicles such as campers and motorhomes.

• Motorcycle Dealer License – Sell new or used motorcycles.

• Broker License – Facilitate vehicle sales without owning the vehicles; no lot required.

🛑 Note: Wholesalers and brokers are not required to have a physical sales lot, but must still meet Indiana licensing and bonding requirements.

Need Help with Your Indiana Dealer Bond or Insurance?

At All American Bonds and Insurance, we specialize in providing fast, affordable Indiana Motor Vehicle Dealer Bonds and garage liability insurance. We’ll walk you through exactly what you need to get licensed—without delays or surprises.

✅ Lowest bond rates available
✅ Super fast quotes and same-day approval
✅ Friendly support for new and experienced dealers

Ready to get your Indiana dealer bond and insurance?