SD motor vehicle dealer bonds.
$750 flat. Soft pull.

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 $750 flat — 3% of the bond amount, identical for every dealer. One soft credit pull, e-signed in 1–2 business days.

Required for your SD new vehicle dealer license — through the Department of Revenue under SDCL 32-6B
Fixed amount, fixed price — $25,000 bond, $750, no quote theater
Soft credit pull only — never affects your score, and the rate stays 3% either way
A-ratedA.M. Best carriers1–2 daystypical issuance1–3 yrterms available
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Three steps to licensed.

Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · 5 MINUTES

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.

WITHIN 48 HOURS

Reviewed & approved

Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

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.

The whole pricing page.

$25,000 bond × 3% = $750, one-time per term. Fixed amount, fixed price, multi-year if you want it.

1-year term
$750
2-year term
$1,500
3-year term
$2,250
About this bond

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.

SDCL Chapter 32-6B (Department of Revenue)South Dakota motor vehicle dealers are licensed by the Department of Revenue under SDCL Chapter 32-6B, which conditions a new vehicle dealer license on a $25,000 surety bond. Used and certain other dealers may qualify at lower bond amounts ($5,000, $10,000, or $20,000) depending on dealer type — verify the amount on your application or send it to us and we'll confirm. Under SDCL 32-6B-7 the bond runs concurrent with the license period and is continued by a continuation certificate filed at the start of each period.

You need this bond if you're

Applying for a SD new vehicle dealer license — the $25,000 bond is filed with your application
Renewing your dealer license and your current bond is expiring or non-renewing
Switching to a new vehicle franchise that moves you into the $25,000 bond tier
Moving to South Dakota from another state and getting licensed here

Five minutes. The whole thing.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

Do I pay the $25,000? +
No. You pay $750 — the flat 3% of the bond amount. The $25,000 is the surety's maximum liability to the state and harmed buyers; it's not a deposit, and nobody holds your money.
Who requires this bond? +
The South Dakota Department of Revenue requires it as a condition of a motor vehicle dealer license, under SDCL Chapter 32-6B. New vehicle dealers post the full $25,000 bond. No active bond, no license.
What does the bond guarantee? +
That you follow South Dakota dealer law, deliver clear title on the vehicles you sell, handle customer funds properly, and pay the taxes and fees you owe the state. If you fail to and someone is harmed, they can claim against the bond — and if the surety pays, you repay the surety.
Is there a credit check? +
Yes — one soft credit pull, which never affects your score. It's the only extra step beyond the application, and it informs approval, not price. The rate is a flat 3% either way: credit can affect whether we approve the bond, never what it costs.
When does it renew? +
The bond runs concurrent with your license period and is continued by a continuation certificate filed with the Department of Revenue at the start of each period (SDCL 32-6B-7). You can buy a 1, 2, or 3-year term; we send renewal notices 60 and 30 days out, with autopay available, so your license never lapses over a missed email.
Related bonds

Other New York bonds.

The Department of Revenue is waiting on one document.

$750 flat, five-minute application, e-signed bond in 1–2 business days. Free until issued.

Your premium @ 3%$750
Apply now →