Dealer Surety Bond in Indiana: $10,000–$100,000 Requirement
Indiana requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Indiana
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Indiana
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Indiana-Specific Note
Indiana-Specific Facts for Dealer Surety Bond
Indiana Vehicle transfer fees and requirements
In Indiana, the title transfer fee is $15 and registration costs $21.35 - $30.35 for passenger vehicles. Vehicle sales are subject to 7% sales tax on purchase price. Indiana does not require notarization for private-party vehicle transfers. Emission testing is required in Indiana — verify the vehicle passes before completing the sale.
- VIN inspection required for out-of-state titles
- Emissions testing required in Lake and Porter counties
- Title transfer must be completed within 31 days
Indiana sales tax on vehicle purchases
Indiana has a 7% state sales tax rate. Flat 7% statewide; no additional local vehicle taxes. Private-party vehicle sales in Indiana are subject to sales tax. Sales tax applies to private party vehicle purchases. The title transfer fee is $15.
Indiana bill of sale statistics
BillOfSaleNow has generated 1,624 bill of sale documents for Indiana transactions, with 44 generated this month alone. The most popular vehicle type is car.
More Indiana Vehicle Guides
- Dealer Fraud Claim in Indiana
- Dealer Prep Fees in Indiana
- Vehicle Deposit Refund in Indiana
- Sell Car With Suspended License in Indiana
- EV Tax Credit in Indiana
- Emissions Inspection in Indiana
Each guide is written specifically for Indiana laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Indiana?
Indiana requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Indiana?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Indiana?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Indiana dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Indiana?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.