Licensing Requirements

In Indiana, If you sell 12 or more vehicles a year―new or used―you'll need to have a dealer license.

Obtaining Your Dealer License

In order to start the process, you'll need to get an application packet. You may request one by calling the state dealer division at (317) 591-5303, or simply by downloading one online. (You will need the free Adobe Reader to download and read PDF files.)

If you'd rather do it the old-fashioned way, you can write to the:

• Bureau of Motor Vehicles Dealer Division

• 6400 East 30th St.

• Indianapolis, IN 46219

No matter the method, once you've received and completed the packet application, you'll need to send it back to that address.

You'll also need to include:

• A 3" by 5" (or greater) photo (or photos) of your established business location, that shows at least the primary sales lot, storage lot, office building, display, and exterior advertising sign.

• Proof that you have a contract or franchise agreement in place with a distributor, manufacturer or converter manufacturer that demonstrates some sort of a sales agreement.

Applications are usually reviewed within three weeks.

Dealer Requirements

Dealers must also closely follow a long line of regulations that includes:

• Having a federal identification number.

• Having a retail merchant's certificate number.

• Having liability insurance for the garage.

• Keeping the BMV current with new photos of your business if significant changes to appearance have occurred, or if your business has moved.

• Remaining in good standing with the BMV, State Police and the Department of Revenue.

• Having an established Indiana address for your business, and not merely a post office box.

In addition, your business must:

• Be open to the public for at least 30 hours every week during normal business hours.

• Be well-lighted when open.

• Be on its own, meaning it can't have another business under its roof unless that business is closely tied to selling vehicles. Even if it is, the proceeds from it cannot be more than 50% of the gross income of your primary business.

• Contain a minimum of 1,300 square feet.

• Be able to house at least 10 vehicles of the type that you're licensed to sell.

• Have adequate space for customer parking.

• Have display and customer parking areas that are adequately surfaced.

• Meet all local zoning requirements.

Also, you'll need to have an office that:

• Is at least 100 square feet in area.

• Has at least standard office
  furniture.

• Has at least basic utilities.

• Has a permanent, obvious sign that identifies the dealership under the name in which you were granted the license, and also includes the hours you're open for business.

Contact Information

If you'd like more information on becoming a dealer, try contacting the BMV Dealer Division by phone at (317) 591-5303.

You may also write to them at the address listed above.