Answers to Frequently Asked Questions


 

What does your company do for me?

We provide you with a legal business address and a REAL, not virtual office (don't fall for this scheme from others). You are assisted by our knowledgeable staff with necessary paperwork to prepare your wholesale dealer license application as well as answer any questions about the auto wholesale business. You receive guidance from experienced auction professionals who conduct sales for the world's largest wholesale auto auction company while being provided with an inside track to success in the auto wholesale industry. View our Services page for more information.
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What are the requirements for the Auto Wholesale Dealer Licence program?

  • Office at Indiana Wholesale Dealers, Inc.
  • Dealer Bond of $25,000
  • Valid Certificate of Dealers Insurance
  • Two (2) color copies of your valid driver’s license

For a Bond and insurance quote we can refer you to an insurance professional to help you set up your dealers insurance.

For additional questions regarding requirements, please call us at (219) 595-5172 or send us an e-mail at info@indianawholesaledealers.com. One of our sales professionals will be happy to provide you with more information.
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What are the costs to get an Indiana Wholesale Dealers License?

Many other companies will advertise as little as $199 and up to $685 startup costs to have an office. What they only tell you in the fine print is that’s just their registration processing fee! Look out for additional rent and services fees charged by our competitors. Ask them what you'll have to pay by the time you are licensed?

Indiana Wholesale Dealers, Inc. is committed to offering you, our client and lessee, the most competitive and complete service available. Our full time staff of professionals will handle the processing of all the documents with different governing bodies to establish your business with the State of Indiana. You will be provided with an organized and detailed binder including all the documents we have completed to obtain your licensing.

After the initial payment Indiana Wholesale Dealers Inc. will not ask for any additional service charges or lease payment until you are licensed by the State.

  • Your bottom line on costs


    Included in your Initial Payment of $698.24 to Indiana Wholesale Dealers Inc.:

    • $200 obtains your lease and reserves your office until your license is approved and your plates arrive in our building
      (no further rent is charged until your plates arrive)
    • $300 Security Deposit
    • $84 Administrative Fee
    • $26.52 Merchant Certificate - paid by us to State of Indiana
    • $87.72 Registration of your S-Corporation (optional) - paid by us to State of Indiana
  • Insurance and Bond


    As little as $1700 annually for the combined minimum required insurance and bond (Payment plans are available from most insurers). We will refer you to expert agents, proficient in the needs of the Indiana Wholease Dealers.

  • Licensing


    City License $100 - Depending on which of our properties we were able to place you in, you may be required to appear in person to submit this application.
    Indiana Wholesale Dealer Licence and 2 plates $20 to $70 prorated to the State's expiration calendar. the Indiana Secretary of State will issue an invoice for the exact amount due when your license application is accepted.

  • Rent

    $300 per month if paid on or before the 1st of the month.

    No additional rent is collected until the day the plates arrive in your office and will then be prorated to make all rents due the first of the month.

 

For additional questions regarding start-up costs, fees, or requirements, please call us at (219) 595-5172, or send us an e-mail at info@indianawholesaledealers.com. One of our sales professionals will provide you with additional information.
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Why is it important to have a real office?

Recently the Indiana Secretary of State suspended and fined 26 dealers $2500 who were told by their landlord they had an office that didn't actually exist. It is your responsibility to make sure the office exists. When you are comparing landlords online be sure to look for a physical address and search for the satellite view to see if there is any possibility the address can house the offices. When you make the required trip to Indiana to complete the licensing requirements it is a good idea to visit the office you are leasing.
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How do I know I'm dealing with a reputable landlord?

This is a big one and difficult to distinguish with all the disinformation that exists. Ask questions and do some homework. How long has the landlord been in business? What is the background of the landlord? Does the landlord publish a privacy policy to protect the sensitive information you are supplying to them? Do they have any third party accreditation or oversight to protect you from unacceptable business practices? Indiana Wholesale Dealers is accredited by the Better Business Bureau. We offer a privacy policy you can understand. We have been conducting Wholesale Auto Auctions in Chicago, Indianapolis, and Milwaukee since 1981. Our staff has a combined 87 years of experience in the Auto Auction business. The Executive Officers have been licensed Indiana Auctioneers since 1979 and have been Indiana Residents their entire lives. The President of our company is one of the founding board members and V.P. of INAWA (Indiana Automobile Wholesalers Association) and has an active role in lobbying for Indiana's wholesale Industry. With our history and reputation inside the Wholesale Auto Auction Industry, there is no one more reputable or better positioned to help you.
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Is it important for the landlord to own the property he is leasing to you?

Absolutely. Unfortunately not all people offering the services we offer are as reputable as we are. Here today, gone tomorrow is a common theme. One competitor was leasing storage units that were in no way compliant until they were caught. The only person that it cost was the dealer who was put out of business and fined. What happened to the landlord? Who knows? He’s gone.
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Why not become a member of the companies offering membership in an LLC?

Here again you need to get a few questions answered. We suggest you consult with an attorney if this is an option you are considering. If any other member of the LLC conducts themselves inappropriately will all of the members suffer? Are they paying and reporting their taxes? Will you be responsible for them if they are not? How can you develop your own credit at the auctions? Owning your own business makes you the only person you have to worry about. It’s your business reputation at stake. Can you trust it to a complete stranger doing business under the same license you are?
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How long does the wholesale dealer license process take?

From the time of submittal, usually around five (5) weeks.

Week 1-2:

We complete all of the necessary paperwork to prepare your applications for the Local, State, and Federal Government agencies which are included in the following activities:

  • Lease and application signing for your office space from Indiana Wholesale Dealers, Inc providing your company with a legally compliant business address
  • We guide you to Insurance personnel for competitive pricing on Bonding and Dealer Insurance coverage
  • We register your Small Business Corporation (your choice) with the Indiana Secretary of State
  • We apply to the Internal Revenue Service for your Employer Identification Number (EIN also known as FID)
  • We apply to the Indiana Department of Revenue for your Retail Merchant Certificate (required for license and provides Sales Tax exemption)
  • We complete your application for a Wholesale Dealer license and up to two (2) dealer plates
  • Meeting with the Secretary of State's investigator is schedules to review rules. We will notify you in advance of the date. It is held less than eight (8) miles from our office and Hammond City Hall. You must be present for this meeting.
  • As soon as convenient, you submit in person the City of Hammond Licence Application we will provide you.

Week 2-3:

The day all necessary documents are accumulated, in our office, your application will be sent to the Secretary of State by overnight delivery.

Week 4-5:

After the review and verification of your application by the state you will be invoiced by the Dealer Division to advise you of the prorated fees required to issue your Wholesale Dealer license and plates. You send them the invoiced amount and they ship the license and plates. Once received in your office we will provide you with a packet to register with and attend wholesale dealer auctions nationwide.
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What does the insurance and bond cost and where do I get them?

Dealer liability insurance plus a $25,000 Bond is a requirement. Insurance costs can be as little as $1450 annually. Flexible payment plans are available for this premium. Bond cost (with good credit) is as little as $250 annually. For competitive quotes, we will refer you to insurance experts, proficient in the needs of Indiana Wholesalers.
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What if I reside in another state?

You do not have to be an Indiana resident. Your office at our facility provides the business address required to fulfill licensing compliance. You may need to make a trip to Northwest Indiana. Some communities we offer services in require a personal appearance fot the initial city approval. After you are licensed 120 days, the Secretary of State conducts random inspections of dealer records which must take place in your office. You, the dealer, or your legal representative must be present for the inspection. You will be notified in advance of he date and location. For out of state traveler's we are the closest facility of our kind. Located just 40 minutes from Chicago O'Hare Airport (ORD) with easy access from I-80/94 or I-90. Everything you need to do will take place within a few miles of our office. This trip could be required to submit your application for the City License. We will notify you in advance if this will be required.
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Is it legal to drive in or out of state with Indiana dealer license plates?

You are legal in all 50 states as a registered dealer. Registration card, proof of insurance and proof of ownership must be present with the plates at all times.
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Where can I buy wholesale cars and trucks?

There are hundreds of dealer only auto auctions nationwide. Here are some of the major ones; keep in mind there might be many other privately owned auctions in your area that you can have access to once you are licensed. Auctions
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What wholesale auto auctions can I attend?

After registering with any dealer auction (we provide a list), you are able to purchase vehicles. Sale days differ with each auction, so check their schedule. Many auctions today have online access, in which you are able to view upcoming sales events and purchase online.
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Are there warranties on autos at auction?

Warranties and guarantees are offered at auto wholesale auctions. However, auction rules vary greatly! It is in your best interest to study each auctions set of rules. Pre and post sale inspections are also available. Inquire with each auction.
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How can I retail a wholesale vehicle?*

In order to process a retail transaction for a vehicle, the retail transaction* must be processed by a licensed retail dealer in the United States. Your retail transactions can take place through our retail division. We will have all necessary forms for the completion of your sale. Our retail professional can assist you with general questions to help with titles and processing.

Retail is a service we maintain for our dealer clients only. They are wholesalers, licensed only to sell to other licensed dealers. We hold a retail license at our facility specifically and exclusively for this purpose. We do not buy and sell cars at that location for our profit. To prevent any competition for you, there is no inventory at our office building.

We do all the paper work and supply a temporary plate. The fee per transaction is $100. The buyer, title, and vehicle to be sold, must come to our property and we collect Indiana Sales tax.

All transactions are AS-IS. Titles, with available space for two reassignments, must be present for all transactions and will be provided to buyers when funding is confirmed by our bank. At that time funds from the sale will be distributed to our Dealer Client.

Please call us at (219) 595-5172 or email at info@indianawholesaledealers.com for all costs and fees. Our sales professionals will be happy to provide you with additional information.

*This program is exclusive and only available to our dealer clients with valid leases in an Indiana Wholesale Dealers, Inc. facility.
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Can I export cars to other countries?

If you have the contacts to sell overseas but do not want the hassle of purchasing vehicles at retail prices, paying taxes, and registering cars every time, then a wholesale license is the solution. With your wholesale dealer license, you do not have to register vehicles when you buy them at auctions or pay a sales tax. There is no limit to how many cars you can sell. Become a wholesale auto dealer with Indiana Wholesale Dealers, Inc. to take advantage of export opportunity. Purchase from hundreds of wholesale auto auctions nationwide to find the right vehicle for your client. As an exporter, you will need to move vehicles around. Your dealer plates make this legal. For more information on exporting vehicles, visit the U.S. Customs web site.
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Can I buy salvage autos?

The salvage and rebuilt car and truck market is huge. Large profits are often realized by mechanics and body repair men offering rebuilt vehicles in the wholesale auto marketplace. Some of the largest salvage vehicle auctions have facilities within minutes of our offices. Once properly licensed by the Indiana Secretary of State, Dealer Division, through the simple application process provided by Indiana Wholesale Dealers, Inc., you would have full access to the wide range of vehicles they offer.
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Can I buy damaged cars for parts?

There are many insurance auctions where you can by cars in need of repair. As a wholesaler, you do not have to pay sales tax or register the vehicles. You may purchase vehicles with clean titles but also salvage and rebuilt in some states. Many auctions specialize in salvage and damaged vehicles. However, each state has different rules in regards to purchases of such vehicles. Inquire with that particular auction about qualifying with your Indiana Wholesale license.
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I'm not comfortable providing my information over the internet. What should I do?

Rest assured that our registration page is SSL secured (note the https at the start of the address) with a viewable Certificate of Authority to ensure safe transmission of your information. Otherwise, please feel free to contact one of our customer service representatives at (219) 595-5172. They will be happy to assist you over the phone.
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How can I get started?

Once you submit the registration form you are on your way to becoming a licensed Indiana Wholesale Dealer. Start Here!
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