Dealer Bonds are Needed in Indiana

If you sell more than 12 cars in one year in the state of Indiana, then you are required by the Indiana Secretary of State to be licensed as an auto dealer. To be licensed, dealers are required to obtain a $25,000 Vehicle Merchandising bond, also known as an Indian auto dealer bond. We understand the process intimately and have helped hundreds of Indiana dealers get bonded. Get started with our three minute form process to obtain an instant quote.

Sample Payment and Performance Bond Form
Motor Vehicle Merchandising Bond

Bond Amount: $25,000

Required By: Indiana Secretary of State

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Acceptance Guaranteed
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Refund within 5 days if not satisfactory
1 Year Bond Starts at
1 Year Bond Price
of bond amount, based on credit check
based on your credit history
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How much is it?

Our prices for an Indiana Vehicle Merchandising bond starts at $100 for a 1 year bond. The price is largely based on the applicant’s credit score. Generally speaking, a higher credit score will result in lower prices. There is no minimum credit score requirement to get an auto dealer bond in Indiana.

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Indiana Auto Dealer Bond FAQ

Are there other instances where I need an auto dealer bond in Indiana?

In addition to new/used car dealers, there are also a few other types of businesses in the vehicle industry that need to get the vehicle merchandising bond in Indiana. We list them below:

  • Vehicle auctions: Auctions who sell more than 3 or more vehicles in a given year need the bond
  • Wholesale Distributor: Dealers who sell vehicles to other licensed dealers need the bond
  • Manufacturers: Manufacturers of motor vehicles or motor vehicle parts need the bond. However, RV and mobile home manufacturers are exempt from license and bonding requirements
  • Salvage Recycler: Motor vehicle salvagers and dealers of salvage parts need this bond
  • Converter Manufacturer: Professionals who build upon manufactured vehicles need this bond
  • Watercraft dealers: Watercraft dealers who sell 6 or more vehicles in a year need this bond
  • Transfer dealers: Professionals deal with the transfer of vehicle titles that transfer more than 12 titles in a year need this bond

As you can see, most occupations within the vehicle industry in Indiana require this bond. If you are not sure, give us a call and we can help you figure out the requirements.

Is a credit check needed for this bond?

Yes, but it won’t impact your credit score. To assess eligibility and pricing for Washington auto dealer bonds, insurance companies perform a "soft credit check." This type of credit check does not have a negative impact on the applicant's credit score and is solely used to determine bond pricing and eligibility.

Can I get an Indiana auto dealer bond with poor credit?

If your credit score is below 650, it may be classified as "poor" credit. Fortunately, we partner with insurance companies that specialize in providing coverage to this market segment. Contact us if you have less than ideal credit. We'll help you obtain a Washington auto dealer bond by shopping your application with our insurance partners. Our team has helped numerous individuals with imperfect credit secure an Indiana Vehicle Merchandising bond.

Is there another name for this bond?

Yes. This is officially known as a “Vehicle Merchandising Bond”, as named by the Indiana Secretary of State, but this is also known colloquially as an “auto dealer bond” or a “motor vehicle dealer bond”. The three are used interchangeably.

How long does it take to get bonded?

We strive to provide same-day bonding service in most cases. Once we obtain a quote from our insurance partners, your pricing is fixed, and the process is immediate. We work diligently, even on weekends, to expedite your bonding procedure. Our phone lines are available every day from 9:30 am to 9:30 pm CST, and if we happen to miss your call, we aim to give you a call back within 30 minutes.

How can I avoid claims against my bond?

Adhering to the auto dealer guidelines in the state of Indiana is essential to avoid potential claims against your bond and your business. This involves paying the appropriate fees and taxes related to vehicle sales and providing valid car titles to customers. By submitting your bond, you confirm that you'll fulfill all legal requirements associated with operating an auto dealer business in Indiana.

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