Confident. Successful. Compliant. Independent Dealers.
If you plan to sell 12 or more vehicles within a 12-month period, Indiana law requires you to obtain a Used Motor Vehicle Dealer License.
Below is a simplified overview of the licensing process for independent auto dealers in Indiana. Online application available at dealers.sos.in.gov. Help guide available here.
1. Complete a Background Check
Applicants must pass a criminal background review as part of the licensing process.
2. Register Your Business Entity
Your dealership must be registered with the State of Indiana through the INBiz business portal before applying for a dealer license.
This includes forming your LLC, corporation, or other business structure.
3. Obtain a Certificate of Insurance
Dealers must maintain proper insurance coverage for their business operations.
4. Secure a Vehicle Merchandising Bond
Indiana requires dealers to obtain a Vehicle Merchandising Bond (State Form 53966) to protect consumers and ensure compliance with state laws.
5. Pay the Dealer License Fee
Applicants must submit the required license fee with their application.
6. Provide Photo Identification
Applicants must provide valid identification as part of the application process.
7. Provide Photos of the Dealership Location
The state requires photos of the dealership office, lot, and signage to verify the business location.
8. Obtain a Retail Merchant Certificate
Dealers must register with the Indiana Department of Revenue and obtain a Retail Merchant Certificate for sales tax purposes.
9. Submit a Zoning Affidavit
A Zoning Affidavit (State Form 55936) confirms that the dealership location complies with local zoning regulations.
10. Complete the Dealer Education Course
First-time used car dealers must complete the IIADA Pre-Licensing Dealer Education Course before applying.
This course provides essential training on dealer laws, documentation, compliance, and dealership operations.
11. Submit Your Dealer License Application
Once all requirements are completed, your application can be submitted to the Indiana Dealer Services Division for review.
After approval, you will receive your Indiana Used Motor Vehicle Dealer License and may legally begin operating your dealership.
Start Your Dealer Journey
The IIADA Pre-Licensing Dealer Education Course is designed to help new dealers understand the licensing process and operate successfully within Indiana’s laws and regulations.
Completing the course is one of the most important steps toward becoming a licensed auto dealer in Indiana.
👉 Register for the Pre-Licensing Course
About IIADA’s Pre-Licensing Dealer Education Course
The IIADA Pre-Licensing Dealer Education Course is the official training program designed to prepare individuals for operating as licensed used motor vehicle dealers in Indiana.
Developed in partnership with the Indiana Secretary of State Dealer Services Division, this course provides essential education on the laws, documentation requirements, and operational responsibilities involved in running a compliant dealership.
The program was established through Senate Enrolled Act 222, which requires first-time used motor vehicle dealer applicants to complete an approved education course before applying for their license.
Through this training, participants gain a clear understanding of:
• Indiana dealer licensing requirements
• Vehicle title and documentation procedures
• Compliance and record-keeping standards
• Dealer responsibilities under Indiana law
Upon successful completion of the course and final exam, participants receive a Dealer Training Completion Certificate, which must be submitted with their dealer license application to the Indiana Secretary of State Dealer Services Division.
The goal of the IIADA course is simple: to help new dealers begin their business with the knowledge and confidence needed to operate responsibly, professionally, and in full compliance with Indiana regulations.