Indiana Auto-Buying Compliance

Leer esta página en español →

From Manny: Working the dealer side of the desk taught me one thing — buyers who walk in knowing their state’s rules walk out with a cleaner deal. This is every Indiana rule my $49 Deal Audit checks against your paperwork. Every citation links to the primary source. No sponsors, no dealer money, no filter.

Last verified 2026-09-20 · every numeric claim independently fact-checked against primary sources · items marked “Not yet verified” are being sourced, never guessed.

1. Documentary Fee / Dealer Processing Charge

Indiana doc fee: $262 statutory cap

Ind. Code § 9-32-13-7: unfair practice to charge a document preparation fee above $200, adjusted annually by the CPI (§ 9-32-13-7(b)). The Secretary of State’s Auto Dealer Services Division memo dated July 1, 2026 states it will not take enforcement action on fees at or below $261.72 as of July 1, 2026 (prior thresholds: $251.05 from 2025-07-01, $245.28 from 2024-07-01). The fee must be included in the advertised sale price, affirmatively disclosed in writing during negotiations with the dollar amount, and shown as a separate line item on the bill of sale. Indiana DOR (Sales Tax Information Bulletin #28S) treats the doc fee as part of the taxable selling price. Verified against primary sources 2026-09-20.

2. Indiana Attorney General Consumer Protection Division

Phone: (800) 382-5516

Complaint URL: https://www.in.gov/attorneygeneral/consumer-protection-division/file-a-complaint/

Division name: Indiana Attorney General Consumer Protection Division

3. Indiana Consumer Protection Statute

Statute: Ind. Code ch. 24-5-0.5

Short name: DCSA

Long name: Indiana Deceptive Consumer Sales Act

Statute URL: https://law.justia.com/codes/indiana/title-24/article-5/chapter-0-5/

4. Sales Tax on Used Vehicle Purchase

Method: state sales tax

Taxable base: purchase price less trade in

Rate: 7.0%

Indiana imposes a state gross retail (sales) tax, currently seven percent, on motor vehicle purchases administered by the Indiana Department of Revenue, and trade-in allowances for another vehicle are generally deducted from the taxable purchase price under Department of Revenue guidance. Motor vehicle dealers collect and remit the tax, and the tax base and any trade-in credit rules are set by statute and DOR regulations for titled vehicles.

5. Indiana Lemon Law

Statute: Ind. Code § 24-5-13-15(a)(1)-(2); Ind. Code § 24-5-13-2; Ind. Code § 24-5-13-7

Repair attempts threshold: 4

Days-out-of-service threshold: 30

Notice deadline: Indiana’s Motor Vehicle Protection Act (Ind. Code ch. 24-5-13) applies to new motor vehicles for a term of protection of 18 months after original delivery or 18,000 miles, whichever occurs first. Reasonable number of repair attempts presumed at 4 unsuccessful attempts on the same nonconformity or 30+ business days out of service (§ 24-5-13-15). Written notice to the manufacturer is required where the manufacturer has clearly disclosed that requirement in the warranty/owner’s manual. Verified 2026-09-20 (four-seat).

6. Title Brand Disclosure

Statute: Ind. Code tit. 9, art. 22

Indiana’s motor vehicle title statutes in Ind. Code art. 9-22 provide for branding of titles for salvage, rebuilt, and other nonstandard vehicles, including procedures for issuing salvage titles when a vehicle has been damaged to the extent defined by statute and for inspection and retitling as rebuilt after repairs. Flood damage and manufacturer buyback or lemon law repurchase vehicles are also subject to branding and disclosure requirements under the title laws, and dealers must disclose branded titles to purchasers; primary statutory text is available through the Indiana Code online service.

7. Vehicle Service Contract (VSC) Regulation

Registration required: Yes

Indiana regulates vehicle service contracts under Ind. Code ch. 27-1-43.2 and related Department of Insurance guidance, which define service contracts, require that obligations under such contracts be backed by a reimbursement insurance policy, and subject providers and administrators to filing and oversight requirements. The Indiana Department of Insurance enforces these provisions, and Bulletin 78 and Ind. Code § 27-1-43.2-7 clarify that certain manufacturer-issued service contracts are not treated as insurance but must meet specified conditions.

8. GAP Insurance Regulation

Markup cap: Not yet verified

Indiana treats guaranteed asset protection waivers and similar products within its insurance and credit protection framework, but a specific statutory cap on dealer markup for GAP waivers could not be verified from a primary Indiana Code or Department of Insurance source; any regulation appears to fall under general insurance and creditor protection statutes rather than a dedicated GAP markup cap provision.

9. Auto Broker / Dealer License Requirement

Special license required: Yes

Indiana requires persons engaged in the business of selling motor vehicles to be licensed as dealers under Ind. Code tit. 9, art. 32, and does not recognize a separate unlicensed auto broker category for arranging consumer purchases; entities acting as brokers in vehicle sales must comply with dealer licensing requirements administered by the Indiana Secretary of State’s Dealer Services Division.

10. Language Disclosure Requirement

Statute: None found

Spanish disclosure required if negotiated in Spanish: Not required by statute / not verified

No specific Indiana statute could be identified that requires automotive retail installment contracts or motor vehicle purchase agreements negotiated in a foreign language such as Spanish to be accompanied by a translation or foreign-language disclosure; consumer transactions remain governed by general contract and Deceptive Consumer Sales Act principles without a dedicated foreign-language auto sales disclosure rule.

11. Recording Law — Consent for F&I Office Recording

Consent type: one-party

Statute: Ind. Code §§ 35-31.5-2-176, 35-33.5-5-5

Confirm consent rules before recording any dealer conversation.

12. Statute of Limitations for Consumer Disputes

Indiana statute of limitations: 2 years

How your Deal Audit uses Indiana compliance data

• Doc fee checked against the Indiana reference: $262 statutory cap
• Dealer Response Letter cites the specific Indiana consumer statute where verified
• State AG contact information surfaced in the audit footer
• State Lemon Law thresholds applied to warranty questions
• State-specific rules automatically arm when your intake indicates Indiana residence