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South Dakota Motor Vehicle Dealers Surety Bonds

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If you are a Motor Vehicle Dealer in South Dakota, you need a motor vehicle dealer surety bond. The South Dakota Department of Revenue Division of Motor Vehicles (the Department) has oversight of motor vehicle dealers licensing, consumer complaints and enforces state vehicle dealer laws. The Department is the "obligee" which is the entity that requires the surety bond.

Surety Bond Requirements:

The surety bond amount you may need is based on the type of vehicles that will be sold.

  • New and Used Vehicle Dealers (also known as car dealers or auto dealers) Surety Bond =$25,000
  • Boat Dealers Surety Bond =$20,000
  • Trailer Dealers (Selling trailers over 3,000 pounds) Surety Bond =$10,000
  • Snowmobile Dealers Surety Bond =$5,000
  • Motorcycle Dealers Surety Bond =$5,000
  • Emergency Vehicle Dealers Surety Bond =$10,000
  • Final Stage Manufacturer Surety Bond =$25,000

    • License Requirements:

    1. Dealers must complete a dealer application from the South Dakota Department of Revenue (DOR), Division of Motor Vehicles and pay the applicable license fee
    2. Obtain a surety bond
    3. Must have a principal place of business that includes a telephone with a listed phone number
    4. Have posted business hours
    5. Space to display inventory
    6. Follow local zoning ordinances and building codes
    7. The business can not be a hotel, motel. apartment, etc.
    8. Minimum liability insurance is required and not be less than $300,000 depending on type of inventory offered.

    How Much Will a South Dakota Motor Vehicle Dealer Bond Cost?

    The premium that you pay for a South Dakota Motor Vehicle Dealer Surety Bond is dependent on credit and the bond amount required. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

    Related Links:

    South Dakota Dealer Requirements

    More Surety Bond Questions?

    Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

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