How to get a used car dealer license in Indiana
A practical walkthrough of the Used Motor Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of October 2026.
Getting a Used Motor Vehicle Dealer used-car dealer license in Indiana:
- Surety bond required
- $25,000
- Application fee
- $30
- License term
- 1 year (expiration month set by your business name)
- Typical timeline
- No published processing time; incomplete applications are delayed
- Typical first-year cost
- $325 – $1,625 (estimate)
This guide is informational and does not replace official Indiana requirements. Always verify with Indiana Secretary of State — Auto Dealer Services Division before applying.
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Who can apply for a Used Motor Vehicle Dealer license
Indiana's Used Motor Vehicle Dealer license is issued by the Secretary of State's Auto Dealer Services Division under Indiana Code 9-32. You need it if you sell, offer to sell, or advertise for sale at least 12 used motor vehicles in a 12-month period, including online.
In Indiana this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Used Motor Vehicle Dealer authority to sell used vehicles.
- A Dealer Training Completion Certificate from the Indiana Independent Automobile Dealers Association (IIADA) online course — required for used dealers not previously licensed
- An established place of business in Indiana: not a residence, strip mall, or temporary location, with at least 1,300 sq ft, display space for 10 vehicles, a 100 sq ft furnished office, and a permanent sign
- Open to the public at least 30 hours a week during normal business hours
- A $25,000 dealer bond on State Form 53966, version R7/03-24
- Liability insurance covering the location (at least $100,000/$300,000/$50,000), $500,000 garage liability, or membership in a regulated risk retention group
- A Retail Merchant Certificate from the Indiana Department of Revenue
- A zoning affidavit (State Form 55936) signed by a zoning official within 90 days of filing
- A background check no more than 60 days old when you apply
- Business entity documents from INBiz, a federal tax ID, and photo ID
Step-by-step process
- 1
Take the IIADA dealer training course
Indiana requires a training course for used motor vehicle dealer applicants (IC 9-32-16-1.3). The Indiana Independent Automobile Dealers Association offers and certifies it online at iiadaeducationalcourses.com. At least one person you name as a dealer owner must complete it. The law caps the price at $300. You get a certificate to submit with your application, and you don't retake it to renew.
- 2
Find a location that meets the Division's rules
The Division's location requirements: not a residence or temporary location, able to get mail, in Indiana, open to the public, and no other dealer operating there. The lot needs at least 1,300 sq ft, room to display at least 10 vehicles, customer parking, and lighting during business hours. You need a 100 sq ft furnished office with working utilities, and a permanent sign in the same name as your license. The location can't be in a retail complex like a strip mall or house a secondary business. Exemptions exist for some requirements — ask dealers@sos.in.gov before you sign a lease.
- 3
Get the zoning affidavit
The local zoning official signs State Form 55936 stating the location is zoned for a dealership. If there's no zoning official, the local executive signs a statement saying so. The Division won't accept an affidavit signed more than 90 days before you submit the application, and it can't issue the license until the affidavit is in.
- 4
Set up the business, tax registration, and insurance
Form your entity through INBiz, get a federal tax ID, and register for a Retail Merchant Certificate with the Indiana Department of Revenue. Get liability coverage for the location that meets IC 9-32-11-14 and a certificate of insurance. Coverage has to stay in force the whole time you're licensed — the license is suspended during any lapse.
- 5
Get the $25,000 bond on the current form
The bond must be on State Form 53966, version R7/03-24. Bonds on older versions aren't accepted. Sign it before you submit it — the Division calls a missing signature one of the most common errors it sees.
- 6
Run the background check and apply online
Get the background check done close to filing: results more than 60 days old aren't accepted. Then apply at dealers.sos.in.gov with the bond, insurance certificate, entity documents, retail merchant certificate, zoning affidavit, photos of the location, photo ID, training certificate, and the $30 fee. Request dealer and interim plates on the application.
- 7
Respond to follow-up and receive your license
The Division doesn't publish a processing time. It says missing information or documents delay the application, so file it complete. Once issued, the license names your established place of business and must be displayed there.
Indiana dealer license types: which one you need
Indiana Code 9-32-11-1 lists every license the Division issues. For an independent used-car lot, the one you want is the used motor vehicle dealer license. The $30 fee is the same for a new motor vehicle dealer or an automobile auction company.
There's no separate wholesale-only dealer license on that list. The statute's definition of "dealer" mentions wholesale dealers only before July 1, 2015. If you buy and resell 12 or more used vehicles a year, plan on the used motor vehicle dealer license and its location rules.
- Used motor vehicle dealer — 12 or more used vehicles in 12 months; $30; IIADA training required
- New motor vehicle dealer — 12 or more new vehicles in 12 months; franchise on file
- Automobile auction company — runs auctions of more than 3 vehicles in 12 months
- Transfer dealer — a business that isn't in the car business but sells 12 or more vehicles a year as a result of its main business; $20
- Automotive salvage recycler, watercraft dealer, manufactured home dealer, and automotive mobility dealer endorsement
Can you get an Indiana dealer license without a lot?
Generally, no. Indiana law says a dealer must have an established place of business that meets the Secretary of State's minimum standards, and a location that only performs ministerial tasks isn't enough (IC 9-32-11-2.1). The Division's standards call for at least 1,300 sq ft and display space for at least 10 vehicles. A residence or temporary location doesn't qualify.
The Division does say exemptions are available for some requirements and takes questions at dealers@sos.in.gov. If your plan doesn't fit the standard lot, ask before you lease anything.
Selling online doesn't get you out of it. A dealer that uses the internet to sell must keep all records at its established place of business in Indiana.
Buy-here-pay-here or in-house financing: the DFI filing
The Secretary of State's license lets you sell. Financing is regulated by the Indiana Department of Financial Institutions (DFI). The Division's forms page says dealers that originate credit sales — generally arranging financing with third-party lenders or offering buy-here-pay-here — must register with DFI.
The filing is DFI's Notice of Intent under the Uniform Consumer Credit Code (State Form 83). Indiana companies file it if they originate consumer credit sales, take assignment of them, or collect payments on them. The form has a "Buy-here-pay-here" box. File it within 30 days after you start, then by January 31 every year (IC 37-2-7-24 to -26). There's no fee to file the Notice of Intent itself. The annual notifications report your credit sales volume, so check DFI's consumer credit fee schedule. Send it to DFI, not the Auto Dealer Services Division.
If you carry notes, DealerVLO tracks buy-here-pay-here accounts with a collections panel for payments and balances. It doesn't lend money, pull credit, or handle any DFI or Secretary of State filing. The registration and the contract forms are on you.
Buying at dealer-only auctions with an Indiana license
A lot of people want a dealer license so they can buy at dealer-only auctions. A licensed dealer is who those auctions are built for, but each auction sets its own registration paperwork, so ask the auction what it needs before you plan around it.
The license math in Indiana: once you sell, offer, or advertise 12 or more used vehicles in 12 months, you need the used motor vehicle dealer license. Buying at auction to flip counts toward that the moment you resell. And because Indiana has no wholesale-only dealer license, auction buying and resale run on the same license with the same location rules.
Two other limits catch new dealers. You can't sell away from your licensed location without an off-site sales permit ($25, no more than three off-site sales in 12 months, applied for at least 10 business days ahead). And vehicle sales generally can't be held on Sunday unless you hold a special event permit.
Why Indiana dealer applications stall
The Division says failure to include required information or documents delays an application. These are the specific problems it calls out:
- An unsigned bond — the Division calls it one of the most common errors
- A bond on an old version of State Form 53966 (only R7/03-24 is accepted)
- Background check results more than 60 days old when the application is submitted
- A zoning affidavit signed more than 90 days before the application is submitted
- A missing Dealer Training Completion Certificate for a first-time used dealer
- A location that fails the standards: a residence, a strip mall, a shared dealer address, a secondary business, too little space, or under 30 posted hours a week
Once you're licensed: the paperwork on every deal
Indiana requires a separate file for every sale (IC 9-32-11-21). When they apply, that file holds the finance agreement, auction receipt, dealer title affidavit, bill of sale, a copy of the title, Form ST-108, proof of title delivery, and any rebuilt-vehicle or flood disclosures.
The buyer's title application is Indiana State Form 205. Our Indiana Form 205 guide walks through it line by line. DealerVLO fills the official State Form 205 from the deal — buyer, vehicle, price, and lien — so you're not retyping it.
For mileage, see our odometer disclosure guide for when a written mileage statement is required and how to fill it out.
Indiana dealer license cost — fees breakdown
| Item | Amount |
|---|---|
License fee (used motor vehicle dealer) Same $30 to renew each year; non-refundable (IC 9-32-11-2, -12.5) | $30 |
Dealer plates (initial) Division fee chart | $40 + $5 service charge |
Additional dealer plate Each | $15 + $5 service charge |
Interim dealer plate Each | $3 |
IIADA training course Statutory cap; one time, used dealers only | Up to $300 |
Off-site sales permit Per event; max three in 12 months | $25 |
Surety bond premium (estimate) Market estimate of 1–5% on the $25,000 bond; set by your credit | $250 – $1,250/yr |
DFI Notice of Intent Only if you originate, assign, or service credit sales | No fee to file |
The Indiana auto dealer bond: $25,000
Indiana requires every used-vehicle dealer to post a $25,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1–5% (estimate) of the bond's face value. Your actual premium depends on personal credit and business history.
Indiana requires every licensee to keep a $25,000 bond in favor of the state (IC 9-32-11-2). It secures fines, penalties, costs, and fees the Secretary of State assesses after notice and a chance for a hearing, and damages to anyone harmed by your violation once they have a judgment. Use State Form 53966 (R7/03-24), sign it, and make any bond changes online through the Dealer Portal. Your license is suspended during any lapse in bond coverage. The premium range is a market estimate, not a state figure.
Renewal
Indiana dealer licenses run one year, and the expiration date depends on the first letter of your business name (IC 9-32-11-12.5). For example, names starting with A–B expire February 1, M–N expire August 1, S expires November 1, and W–Z expire January 1; names starting with a number or symbol expire November 1. Renewal is $30 for a used dealer. Keep the $25,000 bond and your liability insurance in force the whole time — the license is suspended during any lapse in either. Operating on an expired license is a Class A infraction. You don't retake the IIADA course to renew.
Common questions
How many cars can I sell in Indiana without a dealer license?+
Fewer than 12 used vehicles in a 12-month period. Indiana defines a used motor vehicle dealer as anyone who sells, offers to sell, or advertises at least 12 used motor vehicles in 12 months, including online. The same 12-vehicle threshold applies to new vehicles.
Can you get a dealer license in Indiana without a lot?+
Generally, no. Indiana requires an established place of business that meets the Secretary of State's standards — at least 1,300 sq ft with display space for 10 vehicles, a 100 sq ft office, and a sign — and a location that only performs ministerial tasks doesn't qualify. The Division says exemptions exist for some requirements; ask dealers@sos.in.gov.
Does Indiana have a wholesale dealer license?+
Not as a separate license today. The licenses Indiana issues are listed in IC 9-32-11-1, and wholesale-only dealing isn't one of them; the statute references wholesale dealers only before July 1, 2015. Dealers who buy and resell 12 or more used vehicles a year get the used motor vehicle dealer license.
Can I sell cars from home in Indiana?+
Not as a licensed dealer. The Division's location rules say the place of business can't be a residence or a temporary location, and it must be open to the public at least 30 hours a week.
Can I buy at dealer-only auctions with an Indiana dealer license?+
Dealer-only auctions are built around licensed dealers, but each auction sets its own registration rules, so ask the auction. Indiana has no wholesale-only license, so buying at auction to resell runs on the used motor vehicle dealer license.
Do I need anything extra to finance cars in-house in Indiana?+
Yes. Dealers that originate credit sales — buy-here-pay-here or arranging financing with lenders — must register with the Department of Financial Institutions by filing its Notice of Intent within 30 days of starting, then every year by January 31.
What training does Indiana require for a dealer license?+
First-time used dealers must complete the IIADA's online dealer training course and submit the completion certificate with the application. At least one dealer owner takes it, the cost is capped at $300, and it isn't required again for renewal.
How long does it take to get an Indiana dealer license?+
The Division doesn't publish a processing time. It does set hard windows on your documents: the background check can't be more than 60 days old and the zoning affidavit can't be signed more than 90 days before you submit. A complete application with a signed bond on the current form is the fastest path.
How much does a Indiana dealer license cost?+
Plan for about $325 – $1,625 (estimate) in the first year. That covers the $30 application fee and the $25,000 surety bond — you pay an annual premium of roughly 1–5% (estimate) of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in Indiana?+
Dealer plates are separate from the license itself. Once your Used Motor Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
- Indiana SOS Auto Dealer Services — Dealer: New or Used (required documents, location requirements)
- Indiana SOS Auto Dealer Services — Dealer Bond Requirements
- Indiana SOS Auto Dealer Services — Insurance Requirements
- Indiana SOS Auto Dealer Services — Off-Site Sales Requirements
- Indiana SOS Auto Dealer Services — Fee Chart (rev. 9/23)
- Indiana SOS Auto Dealer Services — Forms (DFI registration note)
- Vehicle Dealer License Application, State Form 56187
- Indiana Code Title 9, Article 32 (IC 9-32-2.1, 9-32-11, 9-32-16-1.3)
- Indiana DFI — Notice of Intent, Uniform Consumer Credit Code (State Form 83)
- Indiana DFI — Consumer Credit Licensing
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