The Indiana Secretary of State licenses all Indiana car dealers. You are legally allowed to sell up to 12 vehicles in a year, as long as those vehicles are registered in your name and used primarily for personal, family, or household use.
If you wish to flip vehicles for a profit, you will need to get a license.
How to get an Indiana Dealer License
Step #1: Complete Indiana Dealer License Application
You can find the application and some helpful instructions at the Indiana Secretary of State website.
Step #2: Get a criminal background check
You must submit with your application a National Criminal History Background Check.
The background check must be no more than 60 days old.
Worried about a previous felony? Check out this post on "Getting a Dealer License With a Felony"
Step #3: Purchase a $25,000 Indiana Motor Vehicle Dealer Bond
An Indiana Motor Vehicle Dealer Bond is a type of surety bond that promises you will follow all rules and regulations. If you fail to follow rules and regulations, someone can make a claim against your surety bond.
The bond amount is set at $25,000.
The price you pay for your bond will be between $250-$3,750.
The best way to see what you'd pay for a bond is to get a free quote. Surety Solutions offers free quotes. Bad credit is okay!
Step #4: Purchase insurance
Indiana requires that you have the following insurance:
- $100,000 bodily injury to one person
- $300,000 bodily injury for each accident
- $50,000 property damage
You can purchase an insurance from any insurance company.
Step #5: Provide last requirements
- Zoning approval
- Retail Merchant Certificate
- Federal Tax ID Number
Your license application might require other requirements depending on what types of vehicles you plan to sell.
New and used vehicle dealers must provide proof of an established place of business.
Step #6: Submit paperwork
After compiling all of these, send the documents to: