Along with auto dealers, several vehicle-related businesses need surety bonds filed with the South Dakota Department of Revenue to be licensed. Fill out the application to get your bond in minutes!
Have questions? Give us a call at 855-296-2663 and we will be happy to assist.
The cost of the bond is dependent on a few primary factors: the bond limit, years of experience, and the personal credit of the applicant. For the $25,000 Vehicle Dealer Bond, the prices start at $15 a month or $150 for one year. Additional bond types and limits are shown in the chart below with the lowest rate available.
|Bond Type||Bond Limit||Monthly||1 Year||2 Years|
|Motor Vehicle Dealer Bond||$25,000||$15||$150||$263|
|Boat Dealer Bond||$20,000||$12||$120||$210|
|Trailer Dealer Bond||$10,000||$10||$100||$175|
|Motorcycle Dealer Bond||$5,000||$10||$100||$175|
|Snowmobile Dealer Bond||$5,000||$10||$100||$175|
|Dealer Car Auction Agency Bond||$50,000||$30||$300||$525|
|Final Stage Manufacturer Bond||$25,000||$15||$150||$263|
|Emergency Vehicle Dealer Bond||$10,000||$10||$100||$175|
|Manufactured Home Dealer Bond||$25,000||$25||$250||$438|
If you have great credit as a new vehicle dealer applicant, your bond cost will go down the longer you’re in business as long as your credit remains in good standing.
Along with Jet’s convenient monthly payments or discounted annual rates, multi-year rates are available.
License regulations and classification details can be found on the Dealer Vehicle Licenses webpage.
South Dakota isn’t alone in its surety bond requirement for vehicle dealers—every single state across the U.S. has a similar requirement for auto dealers and several other vehicle-related businesses, such as trailer dealers, motorcycle/off-road dealers, etc. There is an inherent risk to the public when they are purchasing vehicles from a dealership, and the state that regulates the dealer has the responsibility of protecting its citizens.
This is where the South Dakota Department of Revenue (DOR) comes in for motor vehicle dealers operating in the state. The DOR ensures dealers, manufacturers, and auctions are in compliance with South Dakota Codified Laws Title 32.
The surety bond is just one tool used to protect the public by guaranteeing reimbursement when a dealer has caused monetary loss through misrepresentation or misconduct, such as failing to provide a vehicle’s title. The State can also receive compensation from a bond if a dealer fails to remit fees, taxes, etc.
No need to wait for a quote—after you’ve filled in the necessary information, Jet’s system delivers several price options and allows you to pay for the bond right there. Your bond form is ready for download immediately after.
Jet can file the bond for you! But if you prefer to file it alongside other paperwork, you can do so at the following address:
South Dakota Department of Revenue
445 East Capitol Avenue
Pierre, SD 57501