Indiana Vehicle Merchandising / Motor Vehicle Dealer Bond
This $25,000 bond is required for anyone applying for a motor vehicle dealer license in Indiana. The bond protects the state and consumers by ensuring dealers pay any fines, penalties, costs, and fees assessed by the Secretary of State and comply with Indiana dealer licensing laws. If a dealer violates state regulatio…
Overview
What it is.
This $25,000 bond is required for anyone applying for a motor vehicle dealer license in Indiana. The bond protects the state and consumers by ensuring dealers pay any fines, penalties, costs, and fees assessed by the Secretary of State and comply with Indiana dealer licensing laws. If a dealer violates state regulatio…
Who usually needs it
Auto dealers, vehicle merchandisers, and any person or business dealing in 12 or more motor vehicles or 3 or more manufactured homes annually in Indiana. This includes new and used vehicle dealers, auto auctions, manufacturers, distributors, and other auto professionals.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateINBond amount$25,000ObligeeIndiana Secretary of State, Auto Dealer Services DivisionBond classLicense BondCategoryMotor VehicleBondIndiana Vehicle Merchandising / Motor Vehicle Dealer BondPlain descriptionThis $25,000 bond is required for anyone applying for a motor vehicle dealer license in Indiana. The bond protects the state and consumers by ensuring dealers pay any fines, penalties, costs, and fees assessed by the Se…Who needs this bondAuto dealers, vehicle merchandisers, and any person or business dealing in 12 or more motor vehicles or 3 or more manufactured homes annually in Indiana. This includes new and used vehicle dealers, auto auctions, manufa…
FAQ
Common questions.
Who needs an Indiana Vehicle Merchandising / Motor Vehicle Dealer Bond?
Anyone applying for a motor vehicle dealer license in Indiana needs this $25,000 bond. This includes dealers handling 12 or more motor vehicles or 3 or more manufactured homes annually, covering new and used vehicle dealers, auto auctions, manufacturers, distributors, and vehicle merchandisers. The bond must be filed with the Indiana Secretary of State, Auto Dealer Services Division, along with your license application using State Form 53966.
What does the Indiana Motor Vehicle Dealer Bond cover?
The bond secures payment of fines, penalties, costs, and fees assessed by the Indiana Secretary of State. It ensures dealers comply with Indiana Code 9-32 dealer licensing laws. If a dealer violates state regulations or fails to pay required fines or fees, the Secretary of State or injured parties can file a claim against the bond to recover damages.
What happens if my Indiana dealer bond lapses or is canceled?
If your bond lapses, expires, or is canceled, your dealer license will be suspended immediately. Coverage must remain continuous throughout the license period. If your bond is canceled by the surety company, you must submit a new bond to the Indiana Secretary of State right away to avoid license suspension and maintain your ability to operate legally as a dealer in Indiana.
