How much does an auto dealer bond cost in South Dakota?
The South Dakota Department of Revenue and Regulation’s Division of Motor Vehicles requires motor vehicle dealers to post surety bonds in varying amounts prior to conducting business within the state. The required bond amount varies based on the type of vehicles the dealer plans to handle. Applicants should verify their required bond amount with the state prior to bonding.
These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. Bad credit? Don’t worry! SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of all applicants for the bonds they need quickly, easily and affordably.
|Bond Type||Bond Amount||Cost*|
|$25,000 Motor Vehicle Dealer Bond Motor Vehicle Dealer, Mobile or Manufactured Home Dealer, or Final State Manufacturer||$25,000||Starts at $175||GET A QUOTE|
|$20,000 Motor Vehicle Dealer Bond Boat Dealer||$20,000||Starts at $200||GET A QUOTE|
|$10,000 Motor Vehicle Dealer Bond Emergency Vehicle Dealer or Trailer Dealer||$10,000||Starts at $100||GET A QUOTE|
|$5,000 Motor Vehicle Dealer Bond Motorcycle or Snowmobile Dealer||$5,000||Starts at $100||GET A QUOTE|
Why do I need this bond?
Motor vehicle dealer surety bonds in South Dakota are put in place to ensure that principals (vehicle dealers) conduct all business in accordance with the laws of the state. Specifically, these bonds ensure that principals pay all losses, damages and expenses that occur as a result of the principal’s failure to title any motor vehicle, breach of warranty or otherwise fraudulent actions.
If the principal fails to adhere to the letter of the law and the terms of the surety bond contract, the bond protects any purchaser or holder of a lien noted on the certificate of title up to the full penal sum of the bond. The principal must reimburse the surety for any damages paid out.
What’s the fine print?
South Dakota motor vehicle dealer bonds remain in full force and effect until canceled. The bond can be canceled by the surety if the surety gives written notice of cancellation to the Department of Revenue and to the principal. Cancellation becomes effective 30 days after the mailing of said notice.
To produce this bond, surety underwriting companies must know the type of vehicle(s) the applicant plans to handle.
How to become a motor vehicle dealer in South Dakota
To become licensed as a motor vehicle dealer in South Dakota, applicants must complete the following tasks:
- Complete and submit the South Dakota Dealer License Application
- Submit a surety bond in the proper amount
- Submit an insurance certificate
- Submit zoning approval
- Submit a lease agreement, if applicable
More licensing information can be accessed from the Additional Resources section of this page.