How to get a dealer license in Indiana

The Secretary of State says you need a used motor vehicle dealer license if you sell, offer to sell, or advertise for sale at least 12 used motor vehicles in a 12-month period. The count includes semitrailers, trailers, off-road vehicles, snowmobiles, mini-trucks and recreational vehicles. A new motor vehicle dealer license uses the same 12-vehicle test for new vehicles.

• Used motor vehicle dealer: Selling, offering or advertising at least 12 used motor vehicles in 12 months. Used dealers not licensed before must complete dealer training.
• New motor vehicle dealer: Selling, offering or advertising at least 12 new motor vehicles in 12 months.
• Transfer dealer: Transferring ownership of at least 12 vehicles in 12 months as a result of your primary business, such as banks and insurers handling repossessed or salvaged vehicles. Not available if you qualify for another license type.
• Automobile auction: A primary business of arranging, hosting or otherwise running auctions of more than 3 motor vehicles or watercraft in 12 months.
• Automotive salvage recycler: Selling used major component parts, dismantling or crushing vehicles for parts or scrap, rebuilding wrecked vehicles for resale, or storing and recycling vehicles and parts.
• Distributor: Selling new motor vehicles to dealers located in Indiana, including a distributor's branch office.
• Manufacturer: Manufacturing or assembling new motor vehicles or major component parts and selling new vehicles to dealers, distributors or, in limited cases, the public.
• Converter manufacturer: Adding to, removing from or modifying already manufactured vehicles, such as adapting vehicles for people with disabilities or building rescue vehicles. Selling adapted vehicles requires an automotive mobility endorsement.
• Manufactured home dealer (sales lot or community): Selling, offering or advertising at least 3 new or used manufactured homes in 12 months.
• Watercraft dealer: Selling, offering or advertising at least 6 watercraft, or trailers made only for hauling watercraft, in 12 months.

Surety bond. Every dealer license application must include a $25,000 bond in favor of the Secretary of State on State Form 53966, version R7/03-24. Bonds on older versions are rejected, and you must sign the bond before you submit it. The bond secures fines, penalties, costs and fees the Secretary assesses, and damages owed to a person harmed by the dealer's violation of IC 9-32 after a court judgment. The surety can end its liability with 30 days' notice to the Secretary of State. Continuation certificates are accepted for existing bonds. Your license is suspended during any lapse, and bond updates must be made online in the Dealer Portal.

Insurance. Liability insurance covering the established place of business, with limits of at least $100,000 for bodily injury to one person, $300,000 per accident, and $50,000 for property damage. Membership in a risk retention group regulated by the Indiana Department of Insurance can be used instead. Coverage must last the whole license period, and the license is suspended during any lapse. The certificate holder must be the Indiana Secretary of State, not the BMV.

Place of business. The location cannot be a residence or temporary location, cannot have another dealer operating there, must be in Indiana, must be able to receive mail, must be accessible to the public, and must be open at least 30 hours a week during normal business hours. It needs at least 1,300 square feet, display space for at least 10 vehicles, good lighting during business hours, a conspicuous permanent sign in the licensed name, and customer parking. It cannot house a secondary business or be in a retail complex such as a strip mall. The office must be at least 100 square feet, furnished, with working utilities. A zoning official must sign the Zoning Affidavit (State Form 55936) no more than 90 days before you apply. Each location needs its own license, and a Field Examiner reviews the location before the license is issued. The Division says exemptions are available for some requirements.

Background check. A background check must be submitted with the application, and every dealer owner and dealer manager must be disclosed. The Division's instructions use IdentoGO digital fingerprinting (service code 24YGKN), with results processed by the Indiana State Police and FBI and sent to the Secretary of State. Results more than 60 days old when you apply are not accepted.

Pre-license education. Required. Approved courses and details.

1. Register your business entity with the Secretary of State through INBiz and get a Retail Merchant Certificate from the Indiana Department of Revenue.
2. Secure a location that meets the Division's requirements, including 1,300 square feet, display space for 10 vehicles, a 100 square foot office and 30 open hours a week.
3. Have the local zoning official sign the Zoning Affidavit (State Form 55936) within 90 days before you apply.
4. If you have not been licensed before as a used dealer, complete the Indiana Independent Automobile Dealers Association dealer training course and get the certificate.
5. Buy a $25,000 dealer bond on State Form 53966 (R7/03-24), sign it, and get liability insurance with at least $100,000, $300,000 and $50,000 limits.
6. Get fingerprinted through IdentoGO for the background check, no more than 60 days before you apply.
7. Apply online at dealers.sos.in.gov, upload your documents and location photos, and pay the $30 license fee.
8. After a Field Examiner approves the location and the license is issued, buy your dealer plates in the Dealer Portal.

Official forms:

• Indiana Dealer Bond (State Form 53966 (R7/03-24))
• Zoning Affidavit (State Form 55936)
• Online License Application Guide
• Instructions for Fingerprinting (IdentoGO)

Generally no. A new or used dealer license needs a non-residential location of at least 1,300 square feet with display space for at least 10 vehicles and a 100 square foot office. The Division says exemptions are available for some location requirements and takes questions at [email protected].

Dealer-only auctions require a dealer license. AuctionACCESS (auctionaccess.com) restricts membership to licensed, credentialed vehicle dealers and their authorized representatives.

Dealer licenses and plates expire every year on a date set by the first letter of the business name (for example, A to B on February 1 and W to Z on January 1). Renewal is online only, through the Dealer Portal, by the Primary User or an Admin User, up to 90 days before expiration. Your bond and insurance must not expire before the license does.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Indiana Secretary of State, Auto Dealer Services Division before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Indiana.