Indiana sets new licensing fees and regulations for motor vehicle dealerships

Indiana's House Bill 1382, introduced on March 25, 2025, aims to regulate the buying, selling, and trading of motor vehicles, particularly focusing on licensing requirements and operational restrictions for dealers. A significant provision of the bill is the introduction of a $25,000 bond requirement for licensees, ensuring that they can cover fines, penalties, and damages resulting from violations of the law. This bond must be in favor of the state and is designed to protect consumers and uphold industry standards.

The bill also establishes specific licensing fees: $35 for manufacturers and distributors, $30 for new and used motor vehicle dealers, and $20 for transfer dealers. These fees are nonrefundable and will be allocated according to existing state regulations. Additionally, applicants for used motor vehicle dealer licenses must complete a training course certified by the Independent Automobile Dealers Association of Indiana, emphasizing the importance of education in maintaining industry integrity.

One of the more controversial aspects of House Bill 1382 is the prohibition against buying, selling, or trading motor vehicles on Sundays, which is classified as a Class B misdemeanor. This provision has sparked debates among lawmakers and industry stakeholders, with some arguing it restricts consumer choice and others asserting it protects the rights of dealers and promotes a day of rest.

The implications of this bill are significant for Indiana's automotive industry. By tightening regulations and requiring financial accountability, the legislation aims to enhance consumer protection and ensure fair practices among dealers. However, the Sunday sales ban could lead to pushback from both consumers and dealers who see it as an unnecessary limitation.

As House Bill 1382 moves through the legislative process, its potential impact on the automotive market and consumer behavior will be closely monitored. Stakeholders are encouraged to engage in discussions about the bill's provisions, as its final form could reshape the landscape of vehicle sales in Indiana.