Getting a used car dealer license in Indiana

In Indiana, used-car dealers are licensed by Indiana Secretary of State Auto Dealer Services Division.

Before your first retail sale you’ll need a $25,000 surety bond, a pre-licensing course and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

License
Used motor vehicle dealer in.gov (source, opens in a new tab)
Issued by
Indiana Secretary of State Auto Dealer Services Division in.gov (source, opens in a new tab)
Surety bond
$25,000; use SF53966 revision R7/03-24. Older bond form versions rejected. in.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
First-time used dealer must complete Indiana Independent Automobile Dealers Association course at iiadaeducationalcourses.com. in.gov (source, opens in a new tab)
Official fees
Fee chart rev 9/2023: $30 auto-dealer license; initial dealer plate $40 + $5 service; additional plate $15 + $5. in.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Indiana's Secretary of State Auto Dealer Services Division licenses used motor vehicle dealers. New dealers, auctions, salvage recyclers and manufacturers hold different licenses. in.gov › dealer-new-or-used (source, opens in a new tab)

  2. Take the IIADA course

    First-time used dealers complete the Indiana Independent Automobile Dealers Association course at iiadaeducationalcourses.com. in.gov › dealer-new-or-used (source, opens in a new tab)

  3. Find a site that avoids the exclusions

    This is usually the hardest part. A residence, a temporary location, a site shared with another dealer or a secondary business, and strip malls or retail complexes are generally ruled out, though the agency notes exemptions may exist. You need at least 1,300 sq ft with room to display at least 10 vehicles, customer parking and lighting while you're open. in.gov › dealer-new-or-used (source, opens in a new tab)

  4. Set up the office and sign

    The office must be at least 100 sq ft, furnished, with working utilities and mail delivery, open to the public at least 30 hours a week during normal business hours. Add a permanent, conspicuous sign matching your licensed name. in.gov › dealer-new-or-used (source, opens in a new tab)

  5. Register the business

    Set up the entity in INBiz and get a Retail Merchant Certificate. in.gov › dealer-new-or-used (source, opens in a new tab)

  6. Gather the time-sensitive documents

    Your background check must be no more than 60 days old and the zoning affidavit (SF55936) signed within 90 days of applying, so get them close to your application date. Add photos, your photo ID and the insurance certificate. in.gov › dealer-new-or-used (source, opens in a new tab) in.gov › dealer-bond-requirements (source, opens in a new tab)

  7. Get the bond on the current form

    The $25,000 bond must be on form SF53966, revision R7/03-24; older versions are rejected, and unsigned bonds are a common error. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. in.gov › dealer-bond-requirements (source, opens in a new tab) in.gov › dealer-new-or-used (source, opens in a new tab)

  8. Apply through the dealer portal

    Apply online with the fee: $30 for the license, and $40 plus a $5 service fee for the first dealer plate ($15 plus $5 for each additional plate). The agency then reviews the application. in.gov › dealer-new-or-used (source, opens in a new tab) in.gov › Fee-Chart.pdf (source, opens in a new tab)

The location

Display lot
At least 1,300 sq ft location with display capacity for at least 10 vehicles, customer parking and lighting during operating hours. in.gov (source, opens in a new tab)
Office
Office at least 100 sq ft, furnished with working utilities; public access and at least 30 hours/week during normal business hours; mail delivery. in.gov (source, opens in a new tab)
Sign
Permanent conspicuous sign matching licensed name. in.gov (source, opens in a new tab)
Zoning and home-based lots
Zoning affidavit SF55936 signed within 90 days of application. Residence/temporary location, other dealer, secondary business or strip-mall/retail-complex location generally prohibited; agency notes exemptions may exist. in.gov (source, opens in a new tab)

Before you apply

INBiz entity documentation, Retail Merchant Certificate, photo ID, insurance certificate and background check no more than 60 days old. in.gov (source, opens in a new tab)

Forms

SF53966 Indiana Vehicle Merchandising Certificate/Bond (R7/03-24); SF55936 Zoning Affidavit; electronic application and supporting documents linked from agency page. in.gov (source, opens in a new tab)

Get the current versions from in.gov; we don’t host copies.

Not the license you’re after?

New dealer, auction, salvage recycler and manufacturer licenses differ; 12-sale licensing trigger is not a license-retention minimum. in.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: finding a ten-vehicle site that avoids the location exclusions.

Easy mistakes:

Questions

How much does an Indiana dealer license cost?

$30 for the license and $45 for the first dealer plate, including the service fee. The bond premium, insurance and a site that qualifies cost more. in.gov › Fee-Chart.pdf (source, opens in a new tab) in.gov › dealer-bond-requirements (source, opens in a new tab)

Can I run a dealership from home in Indiana?

Generally not: residences are among the excluded locations, although the agency notes exemptions may exist. in.gov › dealer-new-or-used (source, opens in a new tab)

Do I have to sell a certain number of cars?

Indiana's 12-sale figure is the point at which you need a license, not a minimum to keep it. in.gov › dealer-new-or-used (source, opens in a new tab)

Sources

Not affiliated with the Indiana BMV. Not legal advice. Requirements change; always confirm with the state.