How to Get a Dealer License in Indiana
In Indiana, dealer licensing runs through the Indiana Secretary of State — Auto Dealer Services Division. To get a used car dealer license in Indiana you'll need a registered business, a compliant location, a $25,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Indiana auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Indiana Secretary of State — Auto Dealer Services Division's current pages before you file.
- Surety bond
- $25,000
- License term
- Annual term; Indiana dealer licenses run on a calendar-year basis and are renewed each year (commonly expiring December 31 — verify the exact date with the division).
- Sales threshold
- Selling 12 or more motor vehicles (new or used) in a 12-month period requires a dealer license.
- Pre-licensing
- Pre-license dealer education is required for used-vehicle dealers who have not previously been licensed, delivered through the Indiana Independent Automobile Dealers Association (IIADA) — the Auto Dealer Services Division also offers free ongoing dealer training.
License types in Indiana
| License type | What it covers |
|---|---|
| Dealer (New or Used Vehicle) | Retail sales of new and/or used motor vehicles from an established place of business in Indiana. |
| Transfer (Wholesale) Dealer | Dealer-to-dealer and auction sales only — a transfer dealer may not sell to a retail customer. |
| Auto Auction | Operating a wholesale motor-vehicle auction for licensed dealers. |
| Automotive Salvage Recycler | Buying, dismantling, and reselling salvage vehicles and parts. |
| Manufacturer / Distributor | Building or distributing new vehicles to franchised Indiana dealers. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer (New or Used) license fee | $30 | Per IC 9-32-11-2(k); filed online at dealers.sos.in.gov |
| Surety bond (face amount) | $25,000 | State Form 53966; premium is a fraction of this figure |
| Dealer plates | $40 + $5 (initial set); $15 + $5 (additional) | Per the Auto Dealer Services fee chart |
| Interim (temporary) license plate | $3 each | Issued by the dealer to the buyer at point of sale |
| Certificate of insurance + entity/DBA/zoning filings | Varies | Garage/liability insurance and local business filings — verify amounts |
Step by step
- Register your business entity with the Indiana Secretary of State (via INBiz) and file any assumed-name (DBA) paperwork.
- Secure a compliant established place of business and pass the premises rules (1,300 sq ft lot, 100 sq ft office, permanent sign, 30+ open hours, zoning affidavit State Form 55936).
- Obtain the $25,000 surety bond (State Form 53966) and a certificate of insurance.
- If you are a first-time used-vehicle dealer, complete the required dealer education course through the IIADA before applying.
- Submit the Dealer (New or Used) application online at dealers.sos.in.gov and pay the $30 license fee.
- Pass the site inspection, then order dealer plates and set up interim-plate issuance and title processing through the Indiana BMV.
Premises & temp tags
Location: An established place of business in Indiana that meets the division's specific rules: at least 1,300 sq ft of lot with room to display 10 vehicles, an enclosed office of at least 100 sq ft with utilities, a conspicuous permanent sign in the licensed name, open to the public at least 30 hours per week, and not a residence or a unit in a retail/strip-mall complex.
Temp tags / plates: Indiana dealers issue an Interim License Plate (a temporary plate) to the buyer at the point of sale through the state's Plates on Demand system, letting the buyer drive the vehicle until it is titled and registered at the BMV.
Indiana-specific things to know
- Indiana's premises rules are strict and specific — 1,300 sq ft lot, a 100 sq ft office, room to display 10 vehicles, a permanent sign, and 30+ open hours a week — and the location cannot be a home or a strip-mall unit, so many home-based operations do not qualify.
- The dealer-education requirement applies only to used-vehicle dealers who have not previously been licensed; it is completed through the IIADA before the license is issued.
- A Transfer (wholesale) dealer license only allows sales to other dealers and auctions — a single retail sale off a transfer license is a violation.
- Selling 12 or more vehicles in a 12-month period is the bright line that triggers licensing; the division actively pursues unlicensed 'curbstoning.'
Official Indiana resources
- Indiana SOS — Auto Dealer Services Division ↗
- SOS — Dealer License Applications ↗
- Indiana BMV — Titles & Forms ↗
Indiana dealer license FAQ
How much does a dealer license cost in Indiana?+
Dealer (New or Used) license fee: $30; Surety bond (face amount): $25,000; Dealer plates: $40 + $5 (initial set); $15 + $5 (additional); Interim (temporary) license plate: $3 each; Certificate of insurance + entity/DBA/zoning filings: Varies. Plus the $25,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Indiana?+
Indiana requires a $25,000 surety bond. A $25,000 surety bond (Indiana Vehicle Merchandising Certificate/Bond, State Form 53966) in favor of the Secretary of State is required with the application; the annual premium you actually pay is a fraction of the face amount, based on credit.
Do you need a physical lot to get a dealer license in Indiana?+
An established place of business in Indiana that meets the division's specific rules: at least 1,300 sq ft of lot with room to display 10 vehicles, an enclosed office of at least 100 sq ft with utilities, a conspicuous permanent sign in the licensed name, open to the public at least 30 hours per week, and not a residence or a unit in a retail/strip-mall complex.
How many cars can you sell in Indiana without a dealer license?+
Selling 12 or more motor vehicles (new or used) in a 12-month period requires a dealer license.
How long is a Indiana dealer license valid?+
Annual term; Indiana dealer licenses run on a calendar-year basis and are renewed each year (commonly expiring December 31 — verify the exact date with the division).
Is dealer training or an exam required in Indiana?+
Pre-license dealer education is required for used-vehicle dealers who have not previously been licensed, delivered through the Indiana Independent Automobile Dealers Association (IIADA) — the Auto Dealer Services Division also offers free ongoing dealer training.
How do temporary tags work for Indiana dealers?+
Indiana dealers issue an Interim License Plate (a temporary plate) to the buyer at the point of sale through the state's Plates on Demand system, letting the buyer drive the vehicle until it is titled and registered at the BMV.
Data verified 2026-07-17. Requirements change — confirm with the Indiana Secretary of State — Auto Dealer Services Division before filing.
Licensed and ready to sell?
Loturn tracks every cost against every VIN and shows real profit on every car, with dealer accounting built in. One flat price.
Start free trial