Vehicle merchandising bond cost
The Indiana Secretary of State requires professionals involved in the motor vehicle industry within the state to post a $25,000 bond.This bond is subject to underwriting, which means the amount each applicant will pay varies depending on a review of their personal credit report. Have bad credit? No problem! Our experts have a history of helping applicants from a variety of financial backgrounds get bonded for the lowest possible rates.
Why this bond
By posting an Indiana vehicle merchandising bond, the principal (vehicle professional) pledges that he or she will abide by all provisions of the laws, ordinances and resolutions governing issuance of the license issued by the Secretary of State. Specifically, this bond ensures that the principal will pay all fines, penalties, costs and fees assessed by the Secretary of State for violations of the terms stated in Indiana Code 9-32.
Who needs this bond
Vehicle merchandising bonds in Indiana exist to protect consumers of the motor vehicle industry from any fraudulent activity. Due to this, this bond covers many different occupations. The following professionals are covered under this bond type:
- Auto Mobility Dealer: professionals who work exclusively in the field of adapted/wheelchair-accessible vehicles
- Automobile Auctioneer: professionals who provide a location for auctioneers to conduct vehicle auction business
- Dealer: professionals who sell motor vehicles to consumers
- Distributor, Distributor Branch and Distributor Representative: professionals who sell vehicles to dealers that are not classified as wholesale dealers or manufacturers
- Factory Branch and Factory Representative: professionals involved in the installation, building or selling of motor vehicles
- Manufacturer and Converter Manufacturer: professionals who build or construct motor vehicles
- Transfer Dealer: professionals other than a dealer, wholesale dealer or manufacturer who transfer vehicles titles and ownership more than 12 times in a year
- Wholesale Dealer: professionals who sell or purchase vehicles to or from other dealers
Vehicle merchandising bond details
Indiana vehicle merchandising bonds remain valid for 1 year from the effective date. The bond can be canceled if:
- The surety gives the Secretary of State notice of an impending cancellation at least 30 days in advance
- The motor vehicle professional’s license is terminated
- Professionals should be sure to mark their correct license type on the bond form.
Beginning September 1, 2014, the Auto Dealer Services Division will no longer accept a bond form that is not State Form 53966 (R4/5-14). All bonds dated September 1, 2014, or later must be on the new form.
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