South Dakota Motor Vehicle Dealer Bond

A motor vehicle dealer bond in South Dakota costs between $100 and $2,500. The required bond amount is $25,000. Additional bond amounts apply to trailer, motorcycle, snowmobile, motorcycle, off-road vehicle and boat dealers. The cost of these bonds ranges from $100 to $2,000.

For more than a decade, our surety company has been providing dealer bonds to South Dakota customers. Bonds rates are 1% to 10% of the required bond amount. Your dealer bond rate is based on a review of your credit rating, business credentials and financial assets. 

We offer South Dakota surety bonds for most credit scores. The premium rate is 1% to 3% for a 700 or higher credit score. The rate is 3% to 5% for a credit score between 600 and 699. A 5% to 10% rate is offered to applicants with a 599 credit score or lower. 

1. Apply for Your South Dakota Motor Vehicle Dealer Bond

It only takes a few minutes to apply for your South Dakota motor vehicle dealer bond. With our online application, you can apply at your convenience. If you have questions about the application, our bond experts are happy to assist you. 

Joe planned to open an off-road vehicle dealership, and he contacted us for his bond. We appreciated getting an instant quote after applying, and he got friendly assistance from our team when he reached out for clarification about the quote. Soon, he was licensed and opened his business. 

2. Review Your Motor Vehicle Dealer Bond Quote

You can review your instant quote after applying for the auto dealer bond online. Some applications are more complex and require more time to review. In these situations, a quote is available within 48 hours.

3. Pay the Bond Premium Online

Paying for your motor vehicle dealer bond is easy to do. After completing your premium payment, you will quickly see your new bond in your inbox. A mailed copy of your South Dakota motor vehicle dealer bond is also available upon request. 

We are proud to be your trusted surety company in South Dakota, and we are available to support you as you set up your new bond. Please contact us or call us at (877) 514-5146 if you have questions or require assistance.

Motor vehicle dealer licensing is the responsibility of the South Dakota Department of Revenue. The state requires those who are in the business of selling vehicles, boats, motorcycles, snowmobiles and off-road vehicles to hold a license.

This applies to those who sell five or more vehicles within a 12-month period or three or more trailers. In addition, a license is required for auctions, conversions, manufacturing, leasing and other activities. 

Those who conduct business activities without a license are subject to a Class 2 misdemeanor. Additional violations are a Class 1 misdemeanor. These penalties are outlined in SDCL 32-6.

The surety bond is a continuous document. Unless the principal’s business name changes or the bond is canceled, the dealer does not need to provide another bond to the state when renewing its license.

While you only need to provide your surety bond to the Department of Revenue at the time of application, the premium needs to be paid annually. If the premium is not paid, the bond may be canceled. This can result in the suspension of your dealer license.

We support our customers with the maintenance of their surety bonds. Prior to your surety bond’s renewal date, we will be in touch with payment instructions.

If someone files a claim against your business in South Dakota, they must do so directly to your surety company. Upon receiving the claim, the surety company will investigate the matter. If the claim is not supported by the investigation, it is denied. 

If the claim is supported, the claimant will receive a payout against your bond. The payout is limited to the bond’s penal sum. You are then liable for compensating the surety company for the amount of the payout.

The South Dakota Department of Revenue manages motor vehicle dealer licensing and applications. You can get more information about licensing through the South Dakota dealer license guide. Several items are required to apply for a dealer license, including: 

• Application
• An approved business location
• A copy of the property rental agreement, if leasing
• Liability insurance
• Surety bond
• Franchise agreement, if applicable
• A zoning letter
• New license fees:

For additional information and to submit the required motor vehicle dealer licensing documentation, contact:

South Dakota Department of Revenue
445 E. Capitol Avenue
Pierre, SD 57501
Phone: (800) 829-9188