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All state guides Indiana dealer license

How to get a used car dealer license in Indiana

You apply online through the Indiana Secretary of State's dealer portal for a used motor vehicle dealer license. You need a $25,000 bond, 100/300/50 liability insurance, fingerprint background checks, a signed zoning affidavit, a training certificate and a lot with display space for at least 10 vehicles.

  • Sourced to ADSD
  • Checked October 2026
  • Free
License
Used motor vehicle dealer license
Surety bond
$25,000
State fee
$30
Pre-license course
Online IIADA course, first-timers
Background check
Fingerprints, owners and managers
License term
1 year, date set by name
What the state asks for

Indiana dealer license requirements

The figures a first-time used car dealer needs before applying to ADSD. Each row shows how well it is supported.

Surety bond
$25,000Official source

File the bond on State Form 53966 in the (R7/03-24) version. You and the surety both sign it, and the name and address must match your application and sign. The license is suspended during any lapse in the bond.

State license fee
$30Official source

The state license fee for a used motor vehicle dealer is $30 and is nonrefundable. Renewal is also $30. Dealer plates are invoiced separately after approval, and the required training course costs up to $300.

Pre-license education
Online IIADA course, first-timersOfficial source

A first-time used dealer applicant uploads a completion certificate from the online course given by the Indiana Independent Automobile Dealers Association. At least one owner must complete it. No hour count is set in the law.

Background check
Fingerprints, owners and managersOfficial source

Each dealer owner and dealer manager submits to a fingerprint-based national criminal history check run through the state police. Results more than 60 days old on the day you apply are not accepted.

Insurance
$100,000/$300,000/$50,000Official source

Liability insurance covering the place of business: $100,000 bodily injury to one person, $300,000 per accident and $50,000 property damage. The certificate holder must be the Indiana Secretary of State.

Business location
1,300 sq ft, 10 display spacesOfficial source

A physical location of at least 1,300 square feet with display space for at least 10 vehicles, a furnished office of at least 100 square feet, a permanent sign and customer parking, open at least 30 hours a week.

License term and renewal
1 year, date set by nameOfficial source

Licenses and dealer plates expire every year on a date set by the first letter of your business name, from January 1 (W to Z) through December 1 (T to V). Renewal is online only and costs $30.

Sales allowed without a license
11 in a 12-month periodOfficial source

You need a used motor vehicle dealer license once you sell, offer to sell or advertise at least 12 used vehicles in a 12-month period.

Processing time
About 15 business daysOfficial source

The Division's estimated timeline for a license application is 15 business days when it is complete and accurate. The last week of each month can run slower because renewals get priority.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Indiana Secretary of State, Auto Dealer Services Division

License you apply for

Used motor vehicle dealer license

Official licensing page

Old bond forms and stale documents are rejected

The Division accepts the bond only on the (R7/03-24) version of State Form 53966. Background check results older than 60 days and zoning affidavits signed more than 90 days before you apply are not accepted. The training certificate has been required for first-time used dealers since a 2024 law change. The posted fee chart is dated 9/23, so check plate charges in the portal before you pay.
Step by step

How to get a Indiana dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Set up the business and tax registrations

    Register the entity with the Secretary of State through INBiz, get a federal EIN, and get a Registered Retail Merchant Certificate from the Indiana Department of Revenue that shows that EIN. Settle the dealer name that will go on your sign, because the same name and address must appear on every document you upload.

    INBiz · Retail Merchant Certificate

  2. Complete the IIADA training course

    If you have never held a used dealer license, at least one owner completes the online training course given by the Indiana Independent Automobile Dealers Association. State law caps the price at $300. Keep the completion certificate to upload with the application.

    IC 9-32-16-1.3

  3. Get the zoning affidavit signed

    Have the local zoning official sign the Zoning Affidavit, State Form 55936, stating that the location is zoned for a dealer's establishment. An affidavit signed more than 90 days before you submit the application is not accepted, so do this close to filing.

    State Form 55936

  4. Prepare the lot, office and sign

    Bring the site up to the Division's location standards: at least 1,300 square feet, display space for 10 vehicles, a furnished office of 100 square feet with utilities, a permanent sign and customer parking. Photograph the sign, display area, sales and storage lots, and the office inside and out.

    Photo checklist: Dealer, Used

  5. Buy the bond and the insurance

    Get the $25,000 bond on State Form 53966, version (R7/03-24), signed by you and the surety. Get a certificate of liability insurance with limits of at least $100,000/$300,000/$50,000 that names the Indiana Secretary of State's Office, Auto Dealer Services Division as certificate holder. Names and addresses must match your application and sign.

    State Form 53966 · $25,000

  6. Get fingerprinted

    Each dealer owner and dealer manager books digital fingerprinting with IdentoGO using the Secretary of State's auto sales service code from the Division's flyer. The State Police and FBI send results straight to the Secretary of State. Time it so the results are no more than 60 days old on the day you apply.

    Results valid 60 days

  7. Apply at dealers.sos.in.gov

    Sign in to the dealer portal (an INBiz login works), choose License Application and the used dealer type, then enter the business, every owner and manager, your hours and your plate request. Upload the documents and photos and pay the $30 license fee. Each location needs its own license.

    $30 license fee

  8. Pass the examiner review, then buy plates

    A licensing clerk checks the application for completeness, then a field examiner checks that the location meets the requirements, usually with a site visit. The Division estimates 15 business days. After the license is issued you are invoiced for dealer plates in the portal, and plates arrive by mail about 10 business days after payment.

    About 15 business days

Practical advice

Get the zoning affidavit before you spend money on the lot, then work back from two clocks: the affidavit is good for 90 days and the fingerprint results for 60. Use exactly the same dealer name and address on the sign, bond, insurance certificate and retail merchant certificate. If your site is shared, small or in a retail strip, email dealers@sos.in.gov about an exemption before you sign a lease.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Indiana dealer location requirements

What the state checks at the business address.

  • Located in Indiana, open to the public, and not a residence or a temporary location.
  • A physical location of at least 1,300 square feet with display space for at least 10 vehicles and customer parking.
  • An office of at least 100 square feet that is furnished and has working utilities.
  • A conspicuous, permanent sign in the same name that appears on your license.
  • Open at least 30 hours a week during normal business hours, and well lit while open.
  • No other dealer at the location, no secondary business housed there, and not in a retail complex such as a strip mall.
  • Able to receive mail delivery, unless the Postal Service does not serve the address.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Indiana dealer license

Renewal and ongoing duties

Renew online each year by the date tied to your business name, up to 90 days early. Keep the bond and insurance running past the license expiration, because a lapse in either suspends the license. Report a change of owner or manager within 10 days. If you arrange financing or sell buy here, pay here, register with the Department of Financial Institutions.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Indiana dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Indiana?

Apply online at dealers.sos.in.gov to the Secretary of State's Auto Dealer Services Division. Upload a $25,000 bond on State Form 53966, a liability insurance certificate, a zoning affidavit on State Form 55936, fingerprint background check results, your retail merchant certificate, business entity documents, photo ID, location photos and, if you are a first-time used dealer, the IIADA training certificate. An examiner reviews the location before the license is issued.

How much is the dealer bond in Indiana?

$25,000. It runs in favor of the state and must be filed on the (R7/03-24) version of State Form 53966, signed by both you and the surety. If the bond is canceled or expires, your dealer license is suspended until a new one is on file.

How much does an Indiana dealer license cost?

The state license fee for a used motor vehicle dealer is $30, and renewal each year is also $30. Dealer plates are invoiced separately after the license is approved. First-time used dealers also pay for the required training course, which state law caps at $300, plus the cost of fingerprinting, the bond premium and insurance.

Do I need a pre-licensing course in Indiana?

Yes, if you are applying for a used dealer license and have not been licensed before. At least one owner must complete the online training course offered by the Indiana Independent Automobile Dealers Association and upload the completion certificate with the application. State law caps the course price at $300. You do not retake it at renewal.

Can I get an Indiana dealer license without a car lot?

No. The Division requires a physical location in Indiana of at least 1,300 square feet with display space for at least 10 vehicles, a 100 square foot office, a permanent sign and customer parking. It cannot be a residence, a temporary location or a unit in a retail complex. The Division says exemptions are available for some requirements, so email dealers@sos.in.gov about an unusual site.

How many cars can I sell in Indiana without a dealer license?

Up to 11 in a 12-month period. The Secretary of State requires a used motor vehicle dealer license once you sell, offer to sell or advertise for sale at least 12 used vehicles in a 12-month period. That count includes trailers, off-road vehicles, snowmobiles, mini-trucks and recreational vehicles.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with ADSD or your attorney before you sign a lease or pay a fee.

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