Who licenses auto dealers in Indiana?

Indiana new and used motor vehicle dealers are licensed by the Auto Dealer Services Division of the Office of the Secretary of State.

What are the core Indiana dealer location requirements?

Indiana regulations require an established place of business with office space, business hours, a display lot, and a visible business sign, as described in the dealer license rules.

Do Indiana dealers need a surety bond and liability insurance?

Yes. Indiana dealers must maintain a $25,000 dealer surety bond and garage liability insurance that meets minimum coverage limits set by state law.

Indiana Motor Vehicle Dealer License Requirements – 2025 Overview

The Auto Dealer Services Division (ADSD) of the Indiana Office of the Secretary of State licenses new and used motor vehicle dealers. Indiana requires a compliant place of business, dealer bond, and liability insurance, along with adherence to business hour and signage rules.

Important: This is an unofficial summary. Always refer to current ADSD guidance and Indiana regulations before applying.

1. Who regulates dealers in Indiana?

Dealer licensing is managed by the Auto Dealer Services Division.

Regulator: Indiana Office of the Secretary of State – Auto Dealer Services Division (ADSD)
New or used dealer license overview: Dealer – New or Used – Indiana SOS
Dealer licensing portal: Indiana Dealer Licensing Portal

2. Indiana dealer license types

Indiana issues several dealer-related license categories, including:

New motor vehicle dealer.
Used motor vehicle dealer.
Wholesale dealer and other specialized dealer types.

The ADSD site explains thresholds for when a license is required and which category applies.

3. Established place of business and facility standards

Indiana regulations define core requirements for a dealer’s established place of business.

An office where business is conducted and records are maintained.
A display lot for vehicles offered for sale.
Regular business hours posted and observed, with staff available in person or by phone.
A permanent business sign that clearly identifies the dealership.
Compliance with local zoning and any applicable building codes.

4. Business setup, bond, and insurance

4.1 Entity and tax registration

Form your business entity and register it with the Indiana Secretary of State if required.
Obtain a Federal Employer Identification Number (FEIN).
Register for Indiana sales tax and any other required tax accounts.

4.2 Dealer surety bond

Indiana dealers are required to maintain a $25,000 dealer surety bond, regardless of whether they sell new or used vehicles. The bond protects consumers and the state from certain losses caused by dealer misconduct.

4.3 Liability insurance

Dealers must carry garage liability insurance with minimum coverage limits typically at or above $100,000 / $300,000 / $50,000 (bodily injury per person/per accident and property damage), as commonly cited in Indiana dealer guides. Coverage must be in the dealership’s name.

5. Indiana dealer application process

The ADSD website and dealer portal outline application steps. A typical sequence includes:

Determine whether you need a new dealer or used dealer license.
Secure a qualifying place of business, display lot, and business sign.
Form your entity and complete Indiana tax registrations.
Obtain a $25,000 dealer surety bond and required liability insurance.
Create an account in the Indiana dealer licensing portal.
Complete the online license application and upload required documents.
Submit fees and respond to any follow-up questions or inspection requests from ADSD.

6. After approval: ongoing Indiana dealer compliance

Renew your dealer license, bond, and insurance as required.
Maintain posted business hours and keep your place of business compliant.
Follow Indiana rules regarding titles, temp tags, and records.
Update ADSD promptly if your business location, ownership, or legal entity changes.