South Dakota Motor Vehicle Dealer Bond Overview
- Purpose: To protect the state and public from losses resulting from a dealer's wrongdoing
- Who Needs It: Motor vehicle, boat, trailer, motorcycle, snowmobile, emergency vehicle, and mobile home dealers
- Regulating Body: The South Dakota Division of Motor Vehicles
- Bond Amount: $25,000 for standard auto dealers, $5,000–$20,000 for other dealer licenses
- Minimum Price: $175 for $25k coverage, or 0.7–1% of the bond amount
What Is a South Dakota Motor Vehicle Dealer Bond?
South Dakota vehicle dealer bonds hold dealers financially responsible for following state laws. Under South Dakota Codified Law 32-6B-7, all dealers who sell more than five vehicles per year need to file a surety bond and hold a business license.
Bond Coverage Requirements for South Dakota Vehicle Dealers
The amount of surety bond coverage you’ll need will depend on the type of dealer license for which you’re applying. For example, standard car dealers need $25,000 bonds, but motorcycle dealers only need $5,000 bonds.
| Dealer License Type | Bond Requirement |
|---|---|
| Motorcycle or Snowmobile Dealer | $5,000 |
| Trailer or Emergency Vehicle Dealer | $10,000 |
| Boat Dealer | $20,000 |
| Motor Vehicle, Final State Manufacturer, or Mobile/Manufactured | $25,000 |
How Much Do Motor Vehicle Dealer Bonds Cost?
South Dakota dealer bonds typically cost 0.7% to 2% for qualified applicants. For example, if you have excellent personal credit, you can expect to pay $175 for the $25,000 motor vehicle dealer bond. Apply to get your free, personalized quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Surety Bond for a Dealership Work?
A Kentucky motor vehicle dealer bond creates a financial contract between three parties.
- Principal: The motor vehicle dealer filing the bond
- Obligee: The South Dakota Division of Motor Vehicles
- Surety: The surety provider issuing the bond
As the bonded principal, you promise the DMV that you'll uphold all license regulations, financial requirements, and state laws. If not, you become liable for bond claims.
How Do I Get a Motor Vehicle Dealer Bond in South Dakota?
You can apply for your free South Dakota motor vehicle dealer bond quote online 24/7. Simply choose which license type you need and provide your:
- Dealer/dealership name
- Dealer license number, if available
Once you checkout, we’ll email your official bond documents in minutes.
How Fast Can I Get My Bond?
SuretyBonds.com offers free quotes and delivers South Dakota vehicle dealer bonds faster than any other provider. Orders placed by 4 PM CST Monday-Friday are typically processed and emailed the same day.
Can I Get Bonded With Bad Credit?
Having lower personal credit as a vehicle dealer may impact your premium rate, but it doesn’t always disqualify you from getting a bond. We work with a variety of markets to approve 99% of applicants.
When Do I Need to Renew?
A South Dakota dealer license is valid for 5 years; however, you must submit a renewal application and pay a renewal fee each year.
You’ll need to renew your dealer bond each year to extend its coverage. We’ll send reminders. All you need to do is pay the renewal invoice on time and your bond will stay active.
Can I Edit My Bond Form?
If the state requires your surety bond to be updated for any reason, contact your surety provider. The most common changes for these bonds include the car dealership's name or address.
Current Customers: Please email [email protected] outlining the change request.
How to Get a Motor Vehicle Dealer License in South Dakota
The South Dakota Department of Revenue Division of Motor Vehicles enforces licensing regulations for vehicle dealers in the state, including surety bond requirements.
Find step-by-step instructions and lists of required documents for each license type on the SCDMV website. Then, mail everything to the DMV at the following address:
SCDMV
Attn: Business License Unit
PO Box 1498
Blythewood, SC 29016-0023
How Much Does It Cost to Get a Dealer License?
The South Dakota DMV’s dealer licensing fees vary based on the dealership type:
- $300 for vehicle, used vehicle, emergency, and mobile/manufactured home dealers
- $250 for motorcycle and boat dealers
- $150 for snowmobile dealers
- $125 for trailer dealers
You’ll also need to pay for dealer plates.
