Motor Vehicle Dealers - Used Vehicles Only

The Indiana Vehicle Merchandising Bond is a surety bond required for motor vehicle dealers who sell used vehicles only. This bond is mandated by the State of Indiana as part of the licensing requirements for operating a used car dealership in the state.

Used motor vehicle dealers must obtain this bond before they can receive their dealer license from the Indiana Bureau of Motor Vehicles. The bond ensures that dealers comply with all applicable state laws and regulations governing the sale of used motor vehicles, including proper title transfers, accurate vehicle disclosures, and ethical business practices.

The bond protects both consumers and the State of Indiana from financial losses that may result from the dealer's failure to comply with licensing requirements, fraudulent activities, or other violations of motor vehicle laws. If a dealer engages in prohibited practices that cause financial harm, affected parties can file claims against the bond for compensation up to the full bond amount.

This bond requires a $25,000 coverage amount and has a one-year term. The bond is renewable annually, and dealers must maintain continuous coverage to keep their license active and in good standing with the state.