Indiana Auto Dealer Bond$25,000 Secretary of State Requirement

Indiana auto dealer bonds ($25,000) typically cost $250-$2,500 annually based on credit. Excellent credit (750+) pays $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 scores may pay up to $2,500 (10%).

The Indiana Secretary of State - Auto Dealer Services Division regulates all motor vehicle dealers in Indiana. Unlike most states that use the DMV or BMV, Indiana dealer licensing is handled through the Secretary of State office at 302 West Washington Street, Indianapolis.

Indiana requires a minimum 1,300 square feet of display capacity for 10+ 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 minimum 30 hours weekly. Residential or temporary locations are prohibited.

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 updates via US mail or email.

First-time used car dealers must complete dealer training through iiadaeducationalcourses.com before obtaining their license. This requirement does not apply to dealers who have held a previous Indiana dealer license.

Failure to maintain continuous bond coverage results in immediate license suspension. You must maintain your $25,000 bond throughout the entire licensing period. The bond term is 12 months from the effective date.

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 applies to new/used cars, semitrailers, trailers, off-road vehicles, snowmobiles, mini-trucks, and RVs.

The bond protects against payment of fines, penalties, costs, and fees assessed by the Secretary of State, damages to persons aggrieved by dealer violations of IC 9-32, and ensures compliance with all laws governing dealer licenses.

Yes, dealers that originate credit sales (arrange financing with third-party lenders or offer buy-here, pay-here) must also register with the Indiana Department of Financial Institutions in addition to their dealer license.