South Dakota Auto Dealer Bond

Depending on the type of South Dakota dealer license that you would like to get, you will be asked to post a bond between $5,000 and $50,000.

This sum represents the surety bond amount. It is the largest possible amount that affected parties can get if there is a proven claim against you.

To get bonded, however, you need to pay only a fraction of the bond amount. This is called the bond premium and represents your actual surety bond cost.

The usual percentages for standard market bonding are between 1% and 3%. Thus, for a $25,000 South Dakota auto dealer bond, you can expect to pay between $250 and $750.

Your surety sets your bond rate by thoroughly examining your personal and business finances. Your personal credit score is especially important in this assessment. Assets and liquidity, and your professional experience, are also considered. The better your overall business and financial situation is, the lower your bond premium will be.

Our surety bond cost page is a good starting point for understanding how your South Dakota car dealer bond price is set.

Getting a South Dakota motor vehicle dealer bond if you have troubled finances can be tough. Here at Lance Surety Bonds we know that, so we operate our Bad Credit Program to assist dealers with past tax liens, civil judgments, bankruptcies, or bad credit.

You can expect bond premiums of about 5% to 10%, which are slightly higher than the regular bonding rates. The higher costs mitigate the increased risk of bad credit bonding.

Still, you can be sure that with Lance Surety Bonds, you’re getting the best rate on the market. Our excellent relationships with numerous A-rated, T-listed surety companies give us the opportunity to shop around and find the right bonding program for your case.

You can start your bonding today in a few easy steps. First, apply online to get a free, no-obligations South Dakota auto dealer bond quote.

Then submit your complete application, together with all required documents. You’ll get your bond price in no time.

For any questions, you can always reach us at (877) 514-5146. Our bonding expert team is here to help you out with your bonding application.

Make sure to check out our How to Get Bonded page to get the complete picture how bonding works.

Your South Dakota auto dealer bond has to be renewed together with your South Dakota dealer license on a yearly basis.

You will receive a reminder about the license renewal from the South Dakota Department of Revenue. Getting bonded with Lance Surety Bonds means that you’ll never need to worry about missing a bond renewal deadline. We will send you a renewal reminder a few months in advance. This will be followed up via mail, fax and email, if required. You’ll have enough time and plenty of opportunities to renew your South Dakota auto dealer bond, so you can keep your license and stay in operation.

Every time you renew your bond, you could decrease your surety bond cost. Since your finances can change with time, if you have the opportunity to improve them, your bond price will go down from year to year.

Besides obtaining a South Dakota auto dealer bond, you need to complete a few other steps in order to get your South Dakota dealer license.

You have to prepare all documents required in the South Dakota Dealer License Application. These include– among others– proper zoning papers, a certificate of public liability insurance policy, and franchise papers, if applicable. The initial license fee is $300. The license is renewed annually and the renewal fee is $175.

When getting bonded, it’s important to remember that your South Dakota auto dealer bond is not the same as your insurance. The bond protects your clients and not your business.

If you fail to follow the applicable state rules, you can face a claim on your bond. Affected individuals or entities can be compensated up to the penal sum of the bond if the claim is proven. Initially your surety will pay the claim, but you are required to repay it soon after.

The wisest course of action is to avoid claims. They are potentially very harmful for your dealership’s finances, as well as for your business reputation. After having a claim, it can be also difficult to obtain bonds, and therefore to continue operation in the field.