Not in South Dakota? Motor vehicle dealer bonds in other states
South Dakota motor vehicle dealer bonds.
$175 flat.
Also known as the South Dakota auto dealer bond or car dealer bond.
South Dakota requires every new motor vehicle dealer to file a $25,000 bond with the Department of Revenue under SDCL 32-6B. Ours is $175 flat — set by our carrier's rate book, identical for every dealer. One soft credit pull that never affects your score; the bond is issued when you pay.
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Three steps to licensed.
Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:
Apply once, online
Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.
Approved
Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.
E-sign & file with the Department of Revenue
Pay online and receive the executed bond ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the bond actually guarantees
South Dakota licenses motor vehicle dealers through the Department of Revenue under SDCL Chapter 32-6B, and conditions a new vehicle dealer license on a $25,000 surety bond. The bond is a consumer-and-public-protection guarantee: it stands behind your compliance with the dealer license law and your payment of the taxes and fees you owe the state.
It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of South Dakota together with harmed buyers (the protected parties). If a dealer fails to deliver clear title, misapplies a customer's money, or otherwise violates dealer law, the harmed party can recover against the bond.
It is not insurance for you — if the surety pays a claim, you repay the surety. The bond runs concurrent with your license period and is kept in force by delivering a continuation certificate to the Department at the start of each period (SDCL 32-6B-7), so you generally do not file a brand-new bond each year. Dealers who deliver clean title and keep good records treat it as a license formality.
You need this bond if you're
One application, issued instantly.
These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other South Dakota motor vehicle dealer bonds.
Not sure this is the one your license calls for? These are the other motor vehicle dealer bonds we write in South Dakota. Each has its own statute and bond amount.
Other South Dakota bonds.
The Department of Revenue is waiting on one document.
$175 flat, short application, bond issued when you pay. Free until issued.