Motor Vehicle Dealers - New or New and Used Vehicles

The Indiana Vehicle Merchandising Bond is a surety bond required for motor vehicle dealers who sell new vehicles or both new and used vehicles in the state of Indiana. This bond ensures that dealers comply with state regulations and operate their businesses ethically and legally.

Motor vehicle dealers engaged in the sale of new vehicles or combined new and used vehicle sales must obtain this bond as part of their licensing requirements with the State of Indiana. The bond serves as a financial guarantee that the dealer will conduct business in accordance with Indiana's motor vehicle dealer laws and regulations.

This bond protects both consumers and the State of Indiana from financial losses resulting from the dealer's fraudulent, dishonest, or unethical business practices. If a dealer violates state laws or fails to fulfill their obligations to customers, affected parties can file claims against the bond for compensation up to the bond amount.

The Indiana Vehicle Merchandising Bond has a coverage amount of $25,000 and operates on a one-year term. The bond is renewable annually, and dealers must maintain continuous coverage to keep their licenses active and remain in compliance with state requirements.