All Indiana motor vehicle dealers are required by the Indiana Secretary of State to have a $25,000 Vehicle Merchandising Bond, also known as an Auto Dealer Bond. Click the quote button, fill in some quick information, and get your bond in under five minutes.
Jet's direct model eliminates middlemen agents and brokers which allows for discounted annual and multi-year rates in addition to monthly payments.
With good credit and years of experience, you can be approved for a rate of $100 for one year or $10 a month. This means you are a new dealer with good credit, your rate will continue to go down as your years of experience increase!
Monthly payments are convenient for keeping your bond active for years to come at a low rate. The discounted annual and multi-year rates are great for locking in a lower rate up front.
The following vehicle businesses are required by the Secretary of State to be licensed and hold a $25,000 surety bond:
|New Vehicle Dealer||Sells at least 12 new motor vehicles or 3 new manufactured homes in a year.|
|Used Vehicle Dealer||Sells at least 12 used motor vehicles or 3 used manufactured homes in a year.|
|Auction||Arranges or carries out auctions consisting of 3 motor vehicles or watercraft in a year.|
|Distributor||Sells vehicles to dealers.|
|Manufacturer||Manufactures new vehicles or parts of vehicles and sells to dealers or distributors. Includes factory branches and manufacturer-controlled entities.|
*RV and mobile home manufacturers don’t need to be licensed.
|Salvage Recycler||- Sells major component vehicle parts|
- Destroys vehicles to sell a major part or as scrap material
- Rebuilds a vehicle that’s wrecked or dismantled
- Stores, recycles, or disposes of vehicles and/or parts
|Converter Manufacturer||Adds, subtracts, or modifies manufactured vehicles. Examples include:|
- Adapting vehicles for those with disabilities
- Modifying vehicles for rescue vehicle use,
- Adding custom features/amenities to manufactured vehicles
|Watercraft Dealer||Sells at least 6 watercraft or trailers in a year.|
|Transfer Dealer||Transfers 12 or more vehicles in a year. Examples of transfer dealers include insurance companies or financial institutions dealing in salvage/repossessed vehicles.|
|Auto Mobility (Endorsement)||Sells adapted vehicles or watercraft OR sells, services, or installs equipment/modifications designed to facilitate the use of watercraft or vehicle by a disabled individual.|
Several laws are set forth in Indiana Code, Title 9, Article 32 that apply to motor vehicle dealers. The Indiana Secretary of State has the responsibility of regulating dealers and holding them accountable to comply with said laws. This is done through licensing and the surety bond.
Jet is the guarantor on the surety bond, meaning that by providing the bond, Jet is guaranteeing payment should things go awry. More specifically, if an auto dealer fails to abide by the rules and regulations and therefore causes monetary loss to a customer or the obligee, there is a means of restitution available (but the dealer isn’t off the hook). A few examples of when a bond is used for reimbursement include: odometer tampering, nonpayment of fees and taxes, and failure to deliver a vehicle title.
More information on claims can be found in the Motor Vehicle Dealer Bond Claims Guide.
Step 1: Fill out the required information
Step 2: Select your preferred bond term and make payment
Step 3: File your bond with the Secretary of State. This can be done in your dealer dashboard.
If anything needs to be filed the old fashioned way, it can be done at this address:
Indiana Secretary of State, Auto Dealer Services Division
302 West Washington Street, Room E-111
Indianapolis, IN 46204