South Dakota Car Dealer Bonds2019-07-03T00:53:58+00:00

South Dakota Car Dealer Bonds

A dealer bond is used as a type of guarantee that a dealer will not violate the rules established by the State. It protects the public by paying the amount of financial loss suffered by a customer from a dealer’s illegal actions. Bonds are enforced by the South Dakota Motor Vehicle Division.

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south dakota auto dealer bond

Bond Amounts Required in South Dakota.

Several factors play into the equation of what you will pay to receive your bond. Things like personal credit and years in business will affect your cost, as well as the bond amount required for your dealer license.

Taking all of these aspects into account, Jet searches to find you the best cost for your situation. We offer the best rates, allowing you to choose from either a yearly or a month-by-month option to keep costs low at first.

Price Tier* $25,000 Used
Dealer Bond
$15,000 Wholesale
Dealer Bond
$5,000 Motorcycle
Dealer Bond
$10,000 Trailer
Dealer Bond
Monthly | Annual Monthly | Annual Monthly | Annual Monthly | Annual
Preferred     $13 | $150     $10 | $100     $10 | $100     $10 | $100
Standard     $27 | $325     $17 | $195     $10 | $100     $12 | $130
Credit Repair     $47 | $500     $25 | $300     $10 | $100     $19 | $200

*Pricing for dealer bonds is based on many factors such as, personal credit, license history, and number of years as a licensed dealer. Not all available price tiers are reflected, are subject to change, and are not guaranteed.

Licensing Requirements.

When applying for your dealer license, you will have to submit several documents along with your application. Specifically, these documents must be included:

  • Applicable fees
    • Vehicle dealer/used vehicle dealer – $300/initial, $175/renewal
    • Mobile home dealer – $300/initial, $150/renewal
    • Motorcycle/Off-Road Vehicle Dealer – $250/initial, $150/renewal
    • Snowmobile Dealer – $150/initial, $125/renewal
    • Trailer Dealer – $125/initial, $100/renewal
    • Boat Dealer – $250/initial, $175/renewal
  • Original Surety Bond in the required amount (see chart below)
  • Certificate of public liability insurance in the amount of $300,000; required for the following
    • Vehicle dealer
    • Motorcycle/Off-Road Dealer
    • Dealer Car Auction Agency
    • Emergency Vehicle Dealer
    • Final Stage Manufacturer
  • Conformance with land use ordinances, building codes, and zoning from the city/county (written proof mandatory)
  • For new vehicle dealers, any franchise agreements

Bond Amounts Required in South Dakota.

Bonding requirements are different in each state and even among dealers in the same state. South Dakota has five bond amounts that match up to specific dealers. The graph below shows which amount dealers must be bonded in. Additionally, not all dealers need a bond. Dealers selling trailers that weigh less than 3,000 pounds are exempt from carrying a bond.

Who It Applies To Bond Amount
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New and Used Vehicle and Mobile Home Dealers $25,000
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Boat Dealers $20,000
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Dealers of Trailers over 3,000 lbs. and Emergency Vehicles $10,000
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Motorcycle, Off-Road Vehicle, and Snowmobile Dealers $5,000