To obtain a license to sell motor vehicles in the State of South Dakota, a surety bond must be submitted to the South Dakota Department of Revenue (SDDOR). The amount of the bond varies and is based on the license type the principal is applying for:
$25,000 Bond
- New / Used Vehicle Dealer and Mobile Home Dealer
$20,000 Bond
- Boat Dealer
$10,000 Bond
- Trailer Dealer (Over 3,000 Pounds)
$5,000 Bond
- Motorcycle Dealer, Off-Road Vehicle Dealer and Snowmobile Dealer
South Dakota motor vehicle dealer bonds ensure that the principal (vehicle dealer) conducts business in an ethical manner and adheres to all laws of the state that pertain to motor vehicle dealers. The bond protects any purchaser from fraudulent acts committed by the principal and will pay damages up to the full penal sum of the bond. The principal must reimburse the surety for any damages paid out.
Dealer bonds in South Dakota are continuous and remain in full force and effect until canceled by the surety.
Pacific Surety is proud to offer industry low rates and quick turnaround time for quoting of South Dakota Motor Vehicle Dealer Bonds. Feel free to complete our simple application to obtain an approval within hours.