To apply, you must:
10 Indiana Dealer License Requirements
Indiana Dealer Licenses are issued by the Indiana Secretary of State, Auto Dealer Services Division. This page covers Indiana's 10 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. Indiana's Dealer application accepts a sole proprietorship, partnership, limited partnership, LLC, LLP, or corporation.
An LLC keeps your business separate from your personal life and adds trust to the name. An LLC, LLP, or corporation uploads its Indiana Secretary of State certificate with the application. A business formed in another state also uploads its Indiana foreign registration.
With an LLC or corporation, you can add or remove an owner and keep your license. You file the Adding or Removing an Owner, Officer, or Partner form. A sole proprietorship cannot add an owner: any change in ownership means a Ceasing Business Affidavit and a new License Application.
Choose your Dealer License Type
Indiana issues 10 Dealer License types, and most people start with the Dealer (New or Used) License. There is no wholesale license and no salesperson license. A Dealer who sells or installs adaptive equipment for disabled drivers adds the Automotive Mobility Dealer endorsement, not a second license.
| License Type | What It Lets You Do |
|---|---|
| Dealer (New or Used)The type most people start with | Buy and sell new or used motor vehicles to the public and at the dealer auctions. Watercraft, salvage vehicles, and manufactured homes need their own license |
| Auto Auction | Run an automobile auction. Requires a location open to the public, with a sign, customer parking, a 100-square-foot office, and display space for 10 vehicles |
| Automotive Salvage Recycler | Recycle salvage vehicles from an Indiana address with a sign and storage space. Selling to the public adds customer parking, display space, and a 100-square-foot office |
| Converter Manufacturer | Sell converted vehicles. Selling directly to the public means meeting the same location rules as a Dealer (New or Used) |
| Distributor | Distribute motor vehicles to licensed Indiana Dealers. A distributor that only supplies Dealers skips the Dealer location rules, but its location still can't be a residence |
| Manufacturer | Make motor vehicles. A manufacturer that only supplies licensed Dealers skips the Dealer location rules; one selling to the public meets them in full |
| New Manufactured Home Community/Sales Lot | Sell manufactured homes from a nonresidential sales lot, or run a manufactured home community. The sales lot follows the same size and hours rules as a Dealer (New or Used) location |
| Transfer Dealer | For a bank or insurance company that transfers title to 12 or more vehicles in 12 months as a result of its main business, such as repossessions |
| Transport Operators | Transport vehicles within Indiana, with either an established place of business in Indiana or proof of USDOT registration |
| Watercraft | Sell boats and other watercraft from a location that is not attached to or part of a residence |
Get your Dealer Bond (Surety Bond)
An Indiana Dealer (New or Used) License requires a $25,000 bond, filed with the Secretary of State on State Form 53966 (IC 9-32-11-2(h)). The bond protects customers if you break Indiana's dealer laws, and the state can claim against it for fines. A $25,000 Dealer Bond costs only $250 a year, after a credit check.
Use the current version of the form, R7/03-24; older versions are rejected.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Dealer (New or Used)Indiana - Vehicle Dealer ($25,000) | $250/yearabout $21 a month | $25,000 |
| Auto AuctionIndiana - Automobile Auctioneer ($25,000) | $250/yearabout $21 a month | $25,000 |
| Transfer DealerIndiana - Transfer Dealer ($25,000) | $250/yearabout $21 a month | $25,000 |
| Automotive Salvage RecyclerIndiana - Vehicle Merchandising Automotive Salvage Recycler ($25,000) | $250/yearabout $21 a month | $25,000 |
| DistributorIndiana - Vehicle Distributor ($25,000) | $250/yearabout $21 a month | $25,000 |
| ManufacturerIndiana - Vehicle Manufacturer ($25,000) | $250/yearabout $21 a month | $25,000 |
| Converter ManufacturerIndiana - Vehicle Converter Manufacturer ($25,000) | $250/yearabout $21 a month | $25,000 |
| WatercraftIndiana - Vehicle Merchandising Watercraft Dealer ($25,000) | $250/yearabout $21 a month | $25,000 |
Get your Dealer Liability Insurance
An Indiana Dealer (New or Used) License requires liability insurance covering your established place of business, in force for the entire license period (IC 9-32-11-14). The law gives you 3 ways to meet it:
- A garage liability policy of at least $500,000
- Membership in a risk retention group regulated by the Indiana Department of Insurance
- A liability or garage liability policy with limits of $100,000 per person and $300,000 per accident for bodily injury, and $50,000 for property damage
Those are the limits of the policy, not its cost; your insurance agent sets the price. The Division's own insurance page walks through the split-limit policy and the risk retention group; the flat $500,000 option comes from the statute. A lapse suspends the license, and updates go through the online Dealer Portal only.
Set up your Dealer Office
An Indiana Dealer (New or Used) License requires an established place of business at a real Indiana street address, open to the public. State law says the term “does not include a residence, tent, temporary stand, or permanent quarters temporarily occupied” (IC 9-13-2-50). The table below is the Dealer (New or Used) standard (75 IAC 6-2-2).
One Dealer is licensed per address, unless the businesses share ownership and the Secretary approves. A second business can share the location only if it's closely related to vehicle sales. It also has to bring in no more than 50% of the Dealer's gross income.
| What Indiana Requires | |
|---|---|
| Lot | At least 1,300 square feet, with room to display at least 10 vehicles of the type you're licensed to sell |
| Office | A separate dealer office of at least 100 square feet, with a desk, chairs, and filing cabinets, plus electricity, lighting, heat, working plumbing, and a business telephone |
| Hours | Open to the public at least 30 hours a week, or 20 hours plus a telephone, paging, or mobile answering service for 10 more hours, with that number posted on the sign |
| Sign | A conspicuous permanent sign with the dealer's name and business hours |
| Customer parking | Surfaced with asphalt, concrete, rock, or another material that “will not change with weather conditions” |
| Zoning | A Zoning Affidavit (State Form 55936) signed by a local zoning official, confirming the location is zoned for a dealership |
| Photos | Photos of the sales and storage lot, the exterior sign, the display area, and the office inside and out, at least 3 by 5 inches if printed |
Complete the Dealer Training Course — first-time used Dealers
A first-time Indiana used motor vehicle Dealer must include a certificate of completion of the state's training course with the application (IC 9-32-11-2(n)). It's required only for used car Dealers who have not been previously licensed, and Indiana has no Dealer exam.
- The Indiana Independent Automobile Dealers Association presents the course; you take it at iiadaeducationalcourses.com
- The course is online
- By law it costs no more than $300, paid to IIADA
- You submit the completion certificate to the Division with your application
- Waived if you already hold an Indiana used Dealer License at another location and have a certificate on file
Pass the Background Check (Criminal History Check)
Every dealer owner and dealer manager on an Indiana Dealer License application must pass a criminal history check (IC 9-32-16-11). Transport operators are the one exception. The Indiana State Police runs it, as a national or expanded check. That means each corporate officer, director, and designated shareholder, each designated LLC member, each partner, and a sole proprietor.
You schedule fingerprinting through the state's portal, in.ibtfingerprint.com, at your own expense. The check can be dated no more than 60 days before you apply. If you live outside Indiana or can't be printed in person, the portal's Pay for Ink Card option lets you mail in a fingerprint card.
If you have a record
- Denial is discretionary, not automatic. The Secretary of State may deny a license for a felony in the last 10 years. A felony or misdemeanor involving theft, fraud, or the vehicle business is also a ground
- The 10-year clock runs from the conviction date. Theft, fraud, and vehicle-business offenses carry no time limit
- Other misdemeanors don't count. A misdemeanor with no theft, fraud, or vehicle-business element isn't a ground for denial. A pending charge isn't either; a no-contest plea counts as a conviction (IC 9-13-2-38)
- Expunged records can't be used against you. Indiana law bars any licensing body from refusing a license over an expunged or sealed record (IC 35-38-9-10). The application may only ask about convictions that haven't been expunged
- You can appeal. If denied, you have 30 days to petition for review, and an administrative law judge sets a hearing date within 30 days (IC 9-32-16-2)
Submit your Dealer License Application
You apply online through the Division's Dealer Portal at dealers.sos.in.gov; there is no paper application. The fee for a Dealer (New or Used) License is $30 and is nonrefundable. Every fee is itemized under costs.
The application asks for your federal EIN, and it must appear on the Indiana Retail Merchant Certificate you submit with it. A sole proprietor needs an EIN too. Each owner and manager enters the last 4 digits of their SSN for the background check. You also name a registered agent, or someone who can accept legal papers for the dealership.
Pass the Site Inspection (Field Examiner Review)
An Indiana Dealer License location is inspected after you submit the application and before the license is issued. A Licensing and Compliance Clerk first reviews the application for completeness and contacts you about anything missing. Once it's complete, a Field Examiner checks whether the location meets every requirement, and the clerk issues the license after the examiner approves.
Get your Dealer License Plates
An approved Indiana Dealer is issued 2 metal dealer license plates and 2 certificates of registration, for $40 plus a $5 service charge (IC 9-32-6-1). Motorcycle-sized plates are $15 plus $5. Dealer tags let you drive your inventory; you can request more plates, and an examiner reviews your dealer records to justify the increase.
Plates go only on vehicles in your inventory, for the usual operation of the business, moving inventory, or as the Secretary's rules permit (IC 9-32-6-7). They must be stored at your established place of business when not in use.
Dealer License Cost
An Indiana Dealer (New or Used) License costs $30 to apply, and that fee is one of the lowest application fees of any state. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| License application feeNonrefundable | $30 Dealer (New or Used), Auto Auction, or Watercraft$35 Manufacturer or Distributor$20 Transfer Dealer or Converter Manufacturer$10 Automotive Salvage Recycler |
| License renewal | Same as the application fee, every year |
| Dealer Bond | $250 a year, $25,000 bond, credit check required |
| Liability insurance | $500,000 garage liability policy, or the split-limit policy under Insurance, priced by your agent |
| Training courseFirst-time used Dealers only | $300 at most, by law, paid to IIADA |
| Background check | Priced by the fingerprint vendor, paid by each owner and manager |
| Dealer plates | $40 first pair of standard plates, plus $5 service charge$15 first pair of motorcycle plates, plus $5 service charge$15 each additional standard plate, plus $5$7.50 each additional motorcycle plate, plus $2.50$21.35 Dealer Designee plate |
| Offsite sales permitTo sell at a temporary location away from your lot; up to 3 in any 12-month period | $25 |
| Special event permit | $250 for an Indiana Dealer's special event$500 for an out-of-state Dealer's special-event auction |
Dealer License Renewal
An Indiana Dealer License expires every year on a date set by the first letter of your business name (IC 9-32-11-12.5). It is not tied to the date you were licensed, and your dealer plates expire on the same date.
Renewal costs the same as the application fee, $30 for a Dealer (New or Used) License, plus the plates again. The Division's target is 7 business days to process a renewal.
| Business name starts with | License expires |
|---|---|
| A or B | February 1 |
| C | March 1 |
| D, E, or F | April 1 |
| G or H | May 1 |
| I or J | June 1 |
| K or L | July 1 |
| M or N | August 1 |
| O or P | September 1 |
| Q or R | October 1 |
| S | November 1 |
| T, U, or V | December 1 |
| W, X, Y, or Z | January 1 |
| A number or symbol | November 1 |
Common Questions
Can you get an Indiana Dealer License with a felony?
Yes. A felony isn't an automatic bar to an Indiana Dealer License. The Secretary of State may deny one for a felony in the last 10 years. Theft, fraud, and vehicle-business offenses count however old they are (IC 9-32-16-11). Other misdemeanors and pending charges don't count, and an expunged record can't be held against you.
Can you get a Dealer License in Indiana without a lot?
No. An Indiana Dealer (New or Used) License requires an established place of business of at least 1,300 square feet. It needs room to display 10 vehicles and a 100-square-foot office. State law excludes a residence, tent, or temporary stand, and Indiana has no wholesale license that skips the lot.
How many cars can you sell in Indiana without a Dealer License?
In Indiana, a Dealer License is required once you sell, offer to sell, or advertise for sale 12 or more vehicles in any 12-month period (IC 9-32-2.1-44). The count includes vehicles you advertise, not only the ones you sell, and used and new vehicles are counted separately. Below 12, no license is required.
Does Indiana have a wholesale Dealer License?
No. Indiana eliminated its wholesale Dealer License in 2015, and the Indiana Code now mentions a wholesale dealer only as something that existed before July 1, 2015 (IC 9-32-2.1-10). Sites still selling an Indiana wholesale dealer license are describing one the state retired. The Dealer (New or Used) License is what gets you into the dealer auctions.
Does Indiana require insurance for a Dealer License?
Yes. An Indiana Dealer (New or Used) License requires liability coverage for the whole license period, and a lapse suspends the license. You can meet it with a $500,000 garage liability policy, membership in a risk retention group, or a policy with $100,000/$300,000 bodily injury and $50,000 property damage limits. Details under Insurance.
How long does an Indiana Dealer License take?
No Indiana law sets a deadline for the Secretary of State to decide. The Division's published target is 15 business days for a new application and 7 business days for a renewal or plate request (Division FAQ). The Field Examiner's site review happens after the clerk marks your application complete.
Do I need a business bank account?
No. No Indiana statute or application step requires a business bank account. The application asks for your federal EIN, your Retail Merchant Certificate, and your entity documents, and nothing about a bank account (Online License Application Guide).
Do salespeople need a license in Indiana?
No. Indiana issues no salesperson license; its 10 license types are all business licenses (IC 9-32-11-1). The background check applies to owners and dealer managers, not to sales staff.
Support
The Auto Dealer Services Division issues all 10 license types on this page, and its Dealer Portal handles applications, renewals, and bond and insurance updates.
| Contact | Detail |
|---|---|
| Department | Indiana Secretary of State, Auto Dealer Services Division |
| Phone | (317) 234-7190 Auto Dealer Services(317) 576-2568 Dealer Account Helpline(317) 233-1915 fax |
| [email protected] | |
| Address | 302 W. Washington St., Room E-111Indianapolis, IN 46204 |
Additional sources (10)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- IC 9-32-11-2, application requirements — the fee schedule, the $25,000 bond, the liability coverage, the EIN, the Retail Merchant Certificate, the zoning affidavit, and the training certificate
- IC 9-32-11-14, insurance — why insurance is required: the $500,000 garage liability policy, the risk retention group, and the 100/300/50 split-limit policy
- IC 9-32-11-12.5, license expiration — the 12-tier expiration schedule keyed to the first letter of the business name
- IC 9-32-6, dealer license plates — the 2 plates issued with the license, their expiration, the use rules, and the ban on rental vehicles
- IC 9-13-2-50, established place of business — the definition that excludes a residence, tent, temporary stand, or temporary quarters
- IC 9-13-2-38, conviction — what counts as a conviction, including a no-contest plea
- IC 9-32-16-2, discipline and appeals — the 30-day petition for review and the hearing before an administrative law judge
- IC 35-38-9-10, expunged records — the ban on refusing a license over an expunged or sealed record
- Change of Ownership (Secretary of State) — the Adding or Removing an Owner, Officer, or Partner form and the Ceasing Business Affidavit
- Off-Site Sales Requirements (Secretary of State) — the 3-event limit and the special event permits
