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Indiana Vehicle Merchandising Bond

Who needs an Indiana Vehicle Merchandising Bond?

All licensed new or used motor vehicle dealers are required to maintain a Indiana Vehicle Merchandising Bond by the Indiana Secretary of State Auto Dealer Services Division. The bond is required as part of your dealer license application.

Why is the Indiana Vehicle Merchandising Bond required?

The Indiana Vehicle Merchandising Bond helps ensure that dealers conduct business ethically and lawfully.

How do I know this is the required bond for my business?

You may have heard this bond referred to as an Indiana Motor Vehicle Dealer Bond, Indiana DMV Bond, Dealer Bond, Dealer License Bond, Car Dealer Bond or Auto Dealer Bond. While people use many names, they refer to the same bond. If you are a new or used motor vehicle dealer in the state of Indiana, this bond is required to obtain your license.

General Questions
What is a surety bond? 
What is a surety bond?

A surety bond is a three-party agreement among a principal, an obligee, and a surety.

The bond formalizes the principal's obligation to the obligee. The surety guarantees that the principal will fulfill their obligation.