Indiana Auto Dealer Bond

The vehicle merchandising bond requirement extends beyond retail dealerships. A variety of professionals in the automotive industry also need to obtain the bond, such as:

• Wholesale dealers
• Transfer dealers
• Distributors
• Auctioneers
• Manufacturers and converter manufacturers
• Factory manufacturers

The cost of your bond depends mostly on your credit score, in addition to other factors such as your financial liquidity and industry experience. Applicants with good credit generally pay premiums between 1% and 3% of the bond amount.

Getting bonded with bad credit is a bit more complicated, due to the higher risk involved for sureties. For this reason they ask for higher premiums, in the range of 4% to 10%.

Our bad credit surety bonds program helps applicants with all kinds of credit issues get bonded. The only exceptions are applicants with late child support payments and open bankruptcies. With us, you’ll always get the same trusted bonds from the best surety companies.

Applying for your vehicle merchandising bond is fast and secure with our online application. Once you fill it out, you’ll receive a free bond quote instantly. If you choose to proceed, one of our agents will contact you and give you an indemnity agreement to sign.

Upon payment, you can expect your dealer bond to be ready within 1 to 2 business days. We will send the original in the mail, but you can request copies for your personal records via fax or email.

The Indiana auto dealer bond is valid for 1 year from the effective date listed on the bond. It needs to be renewed yearly if you wish to maintain your dealer license.

The renewal process is also pretty straightforward, and doesn’t involve much beyond paying your renewal quote. If you improve your credit score or financials over the year, your renewal premium will be lower next time around.

Once you have satisfied the bonding requirement, there are a number of other steps to fulfill, so you can send your dealer application. These include:

• Obtaining liability insurance
• Pass a background check
• Have an established place of business
• Pay applicable fees

There are numerous other licensing requirement which will also depend on the license type you wish to obtain so be sure to check the website of the Auto Dealer Services Division.

Bond claims are something you should avoid at all costs. It’s important to be up-to-date on all laws and regulations affecting the dealership industry both on a local, state and federal level. The same is true for your salespeople.

So what happens if someone still decides to file a claim? You need to keep all communication with the claimant well-documented, so you can build a case in court. If the surety believes you are not in the wrong, they will help you with legal advice.