Auto-dealer law:
As an auto dealer, you’re probably familiar with the possible risks that come with operating your business. This means you also know that it’s just as important to understand your responsibilities not only for the benefit of your business, but for the betterment of your employees and your consumers alike.
Operating a successful auto-dealer business goes beyond marketing and customer satisfaction. This means ensuring your licensing is up to date and protecting your liabilities at all times. It’s your duty as a business owner to anticipate any regulatory hold ups and handle them accordingly.
Complying with the law:
Auto dealerships are governed by state rules and guidelines. State regulations, as the name suggests, vary from state to state, however they do typically contain the same general requirements. In Indiana, for an auto-dealer to have a dealership you must have a valid dealer’s license, this can be for new, used, or wholesale of vehicles. A person can apply for an auto dealer’s license through the office of the Secretary of State.
Your dealership business must also comply with specific advertising practices, clear fee structure, and thorough record keeping. Other than the obvious need for having complete documentation for all vehicles, inventory and sales, you should keep documents in case of an audit or consumer complaint. While every business owner’s goal is to stay away from any unwanted fines or penalties, an audit or a consumer complaint could hurt the business much worse with a ruined public image if you're not careful.
Protecting your auto-dealership:
One way to protect your business is by having through records and keeping copies of all documentation and inventory on your lot. Sales documentation should include accurate buyer’s information and a valid sales contract that outlines all of the vehicle’s specifications, all necessary purchase fees and any warranties, if applicable. A well-written contract not only ensures accuracy but also serves as a sales receipt should the vehicles integrity ever be questioned.
Having a legitimate auto-dealership business also means complying with advertising laws – remember, no matter how much you may want to expand your business, only do it the lawful way. It’s bad practice to promote your business using misleading claims or hiding sales fees (and not only that but it could cost you a fine if the authorities have to get involved due to any false advertising claims.)
Contacting an auto-dealer law attorney:
To ensure you’re complying with all state laws and regulations you can directly consult with the office of the Indiana Secretary of State or consider speaking with an experienced auto-dealer attorney. Having a compliance strategy to safeguard your interests and protect your business by can be the difference your auto-dealership needs to succeed. The Law Offices of Eugene Mogilevsky, LLC provides comprehensive legal representation to auto dealerships – consult with an auto-dealer attorney and schedule your consultation today by contacting the Law Offices of Eugene Mogilevsky, LLC online.
Disclaimer: This blog post is intended for educational and informational purposes only and should not be taken as legal advice in any capacity. Reading this blog does not constitute or establish an attorney-client relationship.
Useful links and references:
“Auto Dealer Services Division”, Indiana Secretary of State Diego Morales, 2025, https://www.in.gov/sos/dealer/