How to Get an Indiana Used Car Dealer Bond ($25,000)
- 4 days ago
- 2 min read
If you’re planning to open a used car dealership in Indiana, one of the most important licensing requirements is securing the $25,000 Indiana Used Car Dealer Bond. This bond is a mandatory part of the dealer licensing process and helps ensure that dealers operate ethically, comply with state regulations, and protect consumers. Below is a clear, complete guide explaining how to get an Indiana used car dealer bond, how much it costs, and how to secure one quickly.
What Is an Indiana Used Car Dealer Bond?
The Indiana Used Car Dealer Bond is a $25,000 surety bond required by the Indiana Secretary of State’s Auto Dealer Services Division. This bond serves as a financial guarantee that the dealer will:
Follow Indiana dealer laws
Pay taxes and fees owed to the state
Avoid fraudulent activity
Provide accurate titles and disclosures
If a dealer violates the law and causes financial harm, the bond can compensate affected parties. While the bond protects consumers, you—as the dealer—must repay the surety company for any valid claims.
How to Get an Indiana Used Car Dealer Bond ($25,000)
Here’s exactly how to secure your bond:
1. Select a Licensed Surety Bond Provider
Choose a surety company authorized to issue dealer bonds in Indiana. A provider experienced in auto dealer bonding will ensure accurate forms and a smooth approval process.
2. Submit Basic Business and Personal Information
Your surety company will request:
Business name
Owner’s name and contact information
Business address
EIN (if applicable)
Basic financial or credit details
This helps determine your eligibility and pricing.
3. Receive Your Bond Quote
Although the bond amount is $25,000, you don’t pay that amount upfront. Instead, you pay a percentage—typically 1%–10% per year—based on:
Credit score
Financial history
Previous bond or claim issues
Most used car dealers pay $250–$1,000 per year for the bond.
4. Purchase the Bond
Once approved, your surety company will issue the official Indiana Used Car Dealer Bond. This includes signatures, a surety seal, and the correct form required by the state.
5. File the Bond with Your Dealer License Application
Submit your bond to the Indiana Secretary of State as part of your used car dealer licensing packet. This is required before you receive your license.
Get Your Indiana Dealer Bond Through Wexford Insurance
For fast approvals, competitive pricing, and helpful dealer‑focused service, Wexford Insurance is an excellent option. They specialize in auto dealer bonds and make the process simple and affordable.
