Indiana wholesale dealers must post a $25,000 surety bond (Vehicle Merchandising Certificate/Bond, form SF 53966) with the Secretary of State to obtain and maintain their dealer license. The bond protects the state and customers from fraud, violations of motor vehicle laws, unpaid taxes, and other dealer misconduct. A…
Overview
What it is.
Indiana wholesale dealers must post a $25,000 surety bond (Vehicle Merchandising Certificate/Bond, form SF 53966) with the Secretary of State to obtain and maintain their dealer license. The bond protects the state and customers from fraud, violations of motor vehicle laws, unpaid taxes, and other dealer misconduct. A…
Who usually needs it
Wholesale motor vehicle dealers in Indiana who sell at least 120 vehicles in a 12-month period and do not sell to the general public. This includes businesses that sell vehicles exclusively to other dealers, businesses, or at auction.
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 Wholesale Dealer BondPlain descriptionIndiana wholesale dealers must post a $25,000 surety bond (Vehicle Merchandising Certificate/Bond, form SF 53966) with the Secretary of State to obtain and maintain their dealer license. The bond protects the state and …Who needs this bondWholesale motor vehicle dealers in Indiana who sell at least 120 vehicles in a 12-month period and do not sell to the general public. This includes businesses that sell vehicles exclusively to other dealers, businesses,…
FAQ
Common questions.
What is the bond amount for an Indiana wholesale dealer license?
The bond amount for an Indiana wholesale dealer is $25,000. This is filed using form SF 53966 (Vehicle Merchandising Certificate/Bond) with the Indiana Secretary of State Auto Dealer Services Division.
Who needs the Indiana Wholesale Dealer Bond?
Wholesale motor vehicle dealers in Indiana who sell at least 120 vehicles in a 12-month period and do not sell to the general public need this bond. It's required for dealers who sell exclusively to other dealers, businesses, or at auction.
What does the Indiana Wholesale Dealer Bond protect against?
The bond protects the state, customers, and the public from fraud, violations of motor vehicle dealer laws, unpaid taxes, fines, penalties, and any misconduct by the wholesale dealer. Claims can be filed by consumers or the state for violations of Indiana Code 9-32-11-2 and related statutes.
