Considering becoming an Indiana auto dealer? Learn how to get licensed in Indiana, and apply online for the bond you need today.
Indiana Dealer License Requirements
The Indiana Secretary of State (SOS) licenses auto dealers, who sell, offer to sell, or advertise for sale 12 or more vehicles in a 12-month period, including off-road vehicles, snowmobiles, and mini trucks. Some of the information their application asks for includes:
- Dealer’s DBA name
- Business’s website, phone number, email, and address
- Type of business entity
- Whether business location is leased or owned
- Owners, officers, or partners who will appear on the license
- Number of sales employees
- Number of full-time employees not in sales
- Hours of operation (at least 30 per week, or 20 and 10 hours of availability via phone)
On the application, dealers specify if they will sell new or used cars, and what types of cars and other vehicles they will sell. Their places of business must meet certain standards set by the state, and they must include photos with the application:
- Lot of at least 1,300 square feet
- Can display at least 10 vehicles
- Adequately surfaced customer parking
- Office of at least 100 square feet
- Conspicuous sign identifying the dealer and displaying hours of operation
Indiana auto dealers must include some documents with their application:
- $25,000 surety bond
- Proof of $100,000 liability insurance for bodily injury to one person
- Proof of�$300,000 liability insurance for one accident
- Proof of�$50,000 liability insurance for property damage
- Zoning Affidavit, form 55936
- Retail Merchant Certificate
- Photo ID
- Recent (last 60 days) background check�
All application and licensing forms are available on the SOS’s website. The documents, including the application, can be submitted via mail, fax, or email. After the application is reviewed, the SOS assigns an investigator to inspect the dealer’s place of business and determine if the license should be issued.
Indiana Auto Dealer Bonds
When purchasing the required $25,000 bond, dealers promise to adhere to the provisions ofIndiana Code��9-32. Indiana auto dealer surety bonds are required in case a dealer’s violation of the Code causes damages to a consumer. For example, if a dealer misrepresented the vehicle they were selling—by lying about its condition or giving other false information—and the consumer suffered financial damage, they could seek reimbursement by filing a claim against the bond.
If an auto dealer doesn’t pay fines or fees that are due to the Secretary of State, the agency can be reimbursed by the surety. Any claims paid by the surety have to be paid back by the auto dealer.