Indiana Vehicle Title Laws: Requirements, Transfers, and Penalties

Indiana vehicle title laws require every resident who owns a titled or registered vehicle to hold a certificate of title issued by the Indiana Bureau of Motor Vehicles, at a cost of $15 per title.¹ The rules set firm deadlines, spell out what sellers must write on the title, and attach penalties that range from a $30 late fee up to felony charges for fraud. What follows is what you need to know to title a vehicle, transfer one cleanly, or handle a salvage situation without stepping on a violation.

Who Needs an Indiana Title and When

Under Indiana Code 9-17-2-1, every person who owns a vehicle titled or registered in Indiana must hold a certificate of title for it. New residents have 60 days after moving to Indiana to title their vehicles here, and the BMV can ask you to prove when you became a resident, so hold on to a lease, utility bill, or similar document. Operating a vehicle without a certificate of title is a Class C infraction.²

Applying for a Title

You submit a completed Application for Certificate of Title (State Form 205) to any BMV branch, along with proof of ownership and the $15 fee.³ Proof of ownership depends on where the vehicle comes from:

For a new vehicle, the dealer provides a manufacturer’s certificate of origin.
For a used vehicle bought from a private seller, the seller’s properly assigned certificate of title is your proof.
For an out-of-state vehicle, you need the out-of-state title plus a completed Physical Inspection of a Vehicle or Watercraft (State Form 39530). A law enforcement officer or authorized inspector verifies the VIN against the paperwork.⁴

If the vehicle is financed, lender information must appear on the title so the lienholder’s interest is recorded. Bring a Certificate of Gross Retail or Use Tax Exemption (State Form 48841) if the transaction qualifies for a tax exemption.⁵ Otherwise, you owe 7% Indiana sales tax on the purchase price, paid at titling unless a licensed Indiana dealer already collected it and gave you a completed Form ST-108.⁶

Do not sit on this paperwork. A late title application triggers a $30 administrative penalty on top of the $15 fee.¹

Selling a Vehicle: What the Seller Must Do

Indiana Code 9-17-3-3.4 lays out exactly what a seller has to do. You must endorse the certificate of title by assigning it with a warranty of title, disclose all liens or encumbrances on the vehicle, and fill in the buyer’s name, address, and the sale price. You must deliver the title to the buyer at the time of sale, once the buyer has made all agreed-upon payments, including delivery of any trade-in vehicle. Skipping or botching the assignment section is a Class B infraction.⁷ Beyond the fine, an improperly assigned title creates real trouble for the buyer, who may not be able to get a new title issued until you correct the paperwork.

Federal law requires the seller to provide written disclosure of the cumulative mileage shown on the odometer at the time of transfer. If you know the reading is inaccurate, you must state that the actual mileage is unknown. The disclosure goes on the title itself. A buyer purchasing a vehicle for resale cannot accept an incomplete disclosure. New vehicles with fewer than 300 miles are exempt.⁸

Buying a Vehicle: What the Buyer Must Do

Once you have the assigned title, take it to a BMV branch with a completed Form 205, the $15 title fee, and payment of 7% Indiana sales tax on the purchase price.⁶ If you bought from an Indiana dealer, the dealer collects the tax at sale and provides Form ST-108 showing it was paid. If your insurance has changed since your last registration transaction, bring proof of your current insurance.⁹ Waiting too long adds the $30 late penalty.¹

If You Bought From a Dealer

Licensed dealers have their own deadline. Indiana law requires a dealer to deliver the title to the buyer within 31 days of the sale.¹⁰ When the dealer cannot hand over the title at closing, the dealer must provide an affidavit explaining the delay and still meet the 31-day window. The same rule applies to dealer-to-dealer transfers.¹¹ If a dealer misses the deadline, you can file a complaint with the Indiana Secretary of State’s Auto Dealer Services Division.

Salvage and Rebuilt Titles

A salvage title is required for any vehicle manufactured within the last seven model years that falls into one of three categories: an insurance company has declared it uneconomical to repair, the cost to fix it exceeds 70% of its pre-damage fair market value, or it has been damaged by flooding.¹² The 70% threshold applies specifically when the owner is a business that self-insures or someone who acquired the vehicle after the damage occurred. For vehicles older than seven model years, the BMV can issue a salvage title on request, but it is not mandatory.

If an insurance company settles a total loss claim and the owner keeps the vehicle, the owner must apply for a salvage title within 45 days of the settlement.¹³ Knowingly failing to apply for a required salvage title is a Class A infraction, and a vehicle with a salvage title cannot legally be driven on public roads until it earns a rebuilt designation.¹²

Once the vehicle is repaired, the owner applies for a certificate of title with a “rebuilt” designation. A state police officer must inspect the vehicle to verify the VIN and confirm proof of ownership for every major component part used in the restoration, including the source of those parts.¹⁴ The owner must also submit a sworn affidavit from the person who performed the restoration, listing the name, identification number, and source of all component parts, attached to the surrendered salvage title. Police officers performing the inspection may charge up to $5 under a fee set by local ordinance. The “rebuilt” designation stays on the title permanently.

The Move to Electronic Titles

Indiana has been rolling out a statewide Electronic Title and Lien System under IC 9-17-5-6.¹⁵ The rollout has run in stages:

Electronic lien processing became voluntary on July 1, 2022, and mandatory after June 30, 2023.
Electronic title processing became voluntary on July 1, 2025, and is mandatory after June 30, 2026.

For owners, the practical benefit is faster lien releases when a loan is paid off and quicker access to a clear title. After mid-2026, all title processing runs through electronic channels.

Penalties for Title Violations

The consequences scale with what went wrong.

Late filing. New residents who miss the 60-day deadline and buyers who delay their title applications face the $30 administrative penalty on top of the $15 fee.¹⁶

Driving without a title. Class C infraction.²

Improper title assignment by a seller. Class B infraction.⁷

Failing to apply for a required salvage title. Class A infraction.¹²

Title forgery. Making, using, or possessing a forged written instrument with intent to defraud is a Level 6 felony under Indiana’s forgery statute, carrying up to two and a half years of incarceration and a fine of up to $10,000. Even without intent to defraud, counterfeiting a written instrument is also a Level 6 felony.¹⁷

Odometer fraud. A person who violates Indiana’s odometer requirements with intent to defraud commits a felony.¹⁸ Federal law adds up to three years in prison for a knowing and willful violation of the odometer disclosure requirements, plus civil penalties of up to $10,000 per violation, capped at $1,000,000 for a related series.¹⁹

Intent matters. Both odometer fraud and forgery require knowledge or intent depending on the charge, so an honest clerical error is not the same as a fraudulent one. Prosecutors need to prove the person knowingly or intentionally made the false entry, not just that the entry was wrong.

Active-Duty Military Protection Against Repossession

The Servicemembers Civil Relief Act shields active-duty military members from vehicle repossession without a court order, as long as the servicemember signed the loan and made at least one payment before entering service.²⁰ A lender who knowingly repossesses in violation faces criminal penalties, including up to one year of imprisonment. When a lender does petition, the judge can suspend the repossession for at least 90 days, require the lender to refund prior payments, or order the lender to pay the servicemember the equity difference between the vehicle’s value and the remaining loan balance. A servicemember can waive these protections, but only in a separate written document signed during or after military service. Waivers buried in the original loan agreement are not valid.

1
Indiana Bureau of Motor Vehicles. Fee Chart
2
Indiana General Assembly. Indiana Code 9-17-2-1 – Vehicles Requiring Certificates of Title; Proof of Residency; Violation
3
Bureau of Motor Vehicles. Indiana Bureau of Motor Vehicles – Title Forms
4
Indiana Bureau of Motor Vehicles. Buying and Selling a Vehicle
5
Indiana Bureau of Motor Vehicles. Vehicle Title and Registration Checklist
6
Indiana Department of Revenue. Sales Tax Information Bulletin 28S – Sales of Motor Vehicles and Trailers
7
Indiana General Assembly. Indiana Code 9-17-3-3.4 – Sale or Transfer of Ownership of Vehicle
8
Office of the Law Revision Counsel. 49 U.S. Code 32705 – Disclosure Requirements on Transfer of Motor Vehicles
9
Indiana Bureau of Motor Vehicles. Indiana Bureau of Motor Vehicles – Vehicle Registrations
10
Indiana Secretary of State. Auto Dealer Services Division – Title Delivery
11
Indiana General Assembly. Indiana Code 9-32-4-1 – Dealer Certificate of Title Obligations
12
Indiana General Assembly. Indiana Code 9-22-3-3 – Certificate of Salvage Title Required
13
Indiana Bureau of Motor Vehicles. Salvage Motor Vehicle Title Application Checklist
14
Indiana General Assembly. Indiana Code 9-22-3-15 – Rebuilt Salvage Motor Vehicles; Issuance of Certificate of Title; Inspection Fee
15
Indiana General Assembly. Indiana Code 9-17-5-6 – Statewide Electronic Lien and Title System
16
Indiana Bureau of Motor Vehicles. New Indiana Resident Packet
17
Indiana General Assembly. Indiana Code 35-43-5-2 – Counterfeiting; Forgery
18
National Highway Traffic Safety Administration. Odometer Fraud
19
Office of the Law Revision Counsel. 49 USC 32709 – Penalties and Enforcement
20
Office of the Law Revision Counsel. 50 USC 3952 – Protection Under Installment Contracts for Purchase or Lease