Indiana requires anyone in the business of selling new motor vehicles to Indiana dealers to hold a distributor license from the Secretary of State's Auto Dealer Services Division, backed by a $25,000 vehicle merchandising bond under IC 9-32-11-2 — ours is $250 flat, and the price you see is the checkout price. The application includes a credit consent, but it authorizes a soft credit pull only — a soft inquiry that never affects your score.
















Distributor bonds are about the simplest thing in surety. Here's the entire process:
Business details, the owner, and an effective date, plus a one-time consent that authorizes a soft credit pull. That is the application.
Your price is final at checkout — $250 flat. The credit consent authorizes a soft pull only; it never affects your score, and no hard inquiry ever runs on this bond.
Your executed bond and power of attorney arrive by email, ready to file with your distributor license application or renewal. Wet-ink original mailed on request.
A vehicle distributor is a business in the business of selling new motor vehicles to dealers located in Indiana, including through a branch office. Licensing runs through the Secretary of State's Auto Dealer Services Division, and IC 9-32-11-2 conditions the license on a $25,000 surety bond filed on the state's Vehicle Merchandising Certificate/Bond form.
It's a three-party arrangement: you (the principal), the surety carrier, and the State of Indiana (the obligee). The bond secures two things — payment of any fines, penalties, costs, or fees the Secretary of State assesses against the licensee after notice, a hearing opportunity, and the chance for judicial review, and payment of damages to a person harmed by a violation of Article 32 after a judgment is issued against the licensee.
It is not insurance for you — if the surety pays a claim, you repay the surety. The bond has to stay in force for as long as the distributor license is active, so we track it and notify you ahead of your renewal to keep the $25,000 filing continuous.
These are the actual issuing fields, including a one-time consent that authorizes a soft credit pull only.
Start the application →$250 flat, bond often issued in the same sitting. Free until issued.