How to Get a Dealer License in Indiana: Cost & Requirements

Last updated: August 18, 2026

Indiana licenses dealers through the Secretary of State’s Auto Dealer Services Division, not the BMV — and the license fee is $30. The real hurdles are physical and financial: a $25,000 bond, a location of at least 1,300 square feet with display space for 10 vehicles, and 30 hours a week of open business. Indiana is also unusually forgiving on where licensing starts — the trigger is 12 vehicles in 12 months.

Twelve Vehicles — the Most Generous Threshold of Any Major State

Indiana requires a used motor vehicle dealer license once you sell, offer to sell, or advertise for sale at least twelve used vehicles in a 12-month period, and a new motor vehicle dealer license at twelve new vehicles. Practically, that means eleven is the ceiling for unlicensed selling.

Put that next to its neighbors and the gap is stark: Ohio and Texas start at five, North Carolina starts at five regardless of who owns the vehicles, and Georgia’s board says outright that intent to profit makes you a dealer at any number. Note also that Indiana counts advertising a vehicle for sale, not just closing the sale — listings count toward your twelve.

What Indiana Actually Requires

• $30 license fee for an auto or auction dealer license (IC 9-32-11-2(k)). Salvage recycler licenses are $10; manufacturer or distributor $35.
• $25,000 surety bond on State Form 53966, version R7/03-24 — older versions of the form are rejected outright. Sign the bond: the Division calls an unsigned bond one of the most common application errors.
• Certificate of insurance.
• An established place of business: at least 1,300 sq ft total, an office of at least 100 sq ft, display space for at least 10 vehicles, and open at least 30 hours a week during normal business hours.
• A conspicuous, permanent sign in the same name that appears on your license.
• Zoning affidavit — and watch the clock: an affidavit signed by a zoning official more than 90 days before you file is rejected.
• Dealer training certificate, but only for used car dealers who have not been licensed before.

What It Costs

Item	Cost	Notes
Auto or auction dealer license	$30	IC 9-32-11-2(k)
Surety bond (penal sum $25,000)	Premium varies by credit	State Form 53966 R7/03-24, must be signed
Initial dealer plates	$40 + $5 service charge	Additional plates $15 + $5
Offsite sales permit	$25	Special event permit $250
Indiana LLC (Articles of Organization)	$95 online / $100 by mail	INBiz portal, 1–2 business days

How to Get Licensed, In Order

1. Form the entity at INBiz ($95 online). The license, bond, insurance, and sign all have to carry this name.
2. Line up the location — 1,300 sq ft with a 100 sq ft office and room to display 10 vehicles — and plan on being open 30 hours a week.
3. Get the zoning affidavit signed, and file within 90 days of that signature.
4. Take the dealer training if you have never held a used dealer license.
5. Buy the $25,000 bond on the current form version, sign it, and get the certificate of insurance.
6. Apply through the Dealer Portal ($30) and order plates.

Keep the Bond Current — Indiana Suspends for a Lapse

Since October 1, 2024, bond and insurance updates must be submitted online through the Dealer Portal; the Division no longer accepts them by mail or email. That matters more than it sounds, because Indiana states plainly that your dealer license is suspended during any lapse in bond coverage. If a bond is cancelled or expires, the replacement has to be in before the gap opens, not after.

Frequently Asked Questions

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

Eleven. Indiana requires a used motor vehicle dealer license once you sell, offer to sell, or advertise for sale at least twelve used vehicles in a 12-month period, and a new motor vehicle dealer license at twelve new vehicles. That is the most generous threshold among major states — Texas and Ohio trigger at five, and Georgia says intent to profit alone makes you a dealer.

How much does an Indiana dealer license cost?

The auto or auction dealer license itself is only $30 under IC 9-32-11-2(k). Your first set of dealer plates costs $40 plus a $5 service charge, with additional plates at $15 plus $5. The larger costs are the $25,000 surety bond premium, the certificate of insurance, and a location that meets the 1,300 square foot rule.

What are Indiana’s established place of business requirements?

A physical location of at least 1,300 square feet, an office of at least 100 square feet, display space for at least 10 vehicles, and open hours of at least 30 hours a week during normal business hours. You also need a conspicuous permanent sign carrying the same name that is on your license, plus a zoning affidavit signed within the last 90 days.

Do I need a dealer training course in Indiana?

Only if you are a used car dealer who has not been previously licensed — that group must submit a Dealer Training Completion Certificate. The Auto Dealer Services Division points applicants to iiadaeducationalcourses.com for the training.

Taxes, registration, workers’ comp, and hiring are covered in our full guide to starting a business in Indiana.

Sources

Source	What It Covers
Indiana SOS — Dealer, New or Used	12-vehicle threshold, place of business sizes, hours, sign, zoning affidavit, training certificate
Indiana SOS — Dealer Bond Requirements	$25,000 bond, State Form 53966 R7/03-24, Dealer Portal submission, suspension during lapse
Indiana SOS — Auto Dealer Fee Chart	$30 license fee, plate fees, permits, with Indiana Code citations