SD used dealer bonds.
$187.50 flat.
Also known as the South Dakota auto dealer bond or car dealer bond.
South Dakota requires a licensed motor vehicle dealer to file a $25,000 bond under SDCL 32-6B-7. Ours is $187.50 flat — set by our carrier’s rate book, identical for every dealer. A quick soft credit check may apply, never a hard inquiry, e-signed in 1–2 business days.
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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’s the application — the only extra step is a one-time consent to a soft credit pull.
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.
E-sign & file with the Motor Vehicle Division
Pay online and receive the executed bond ready to file with your dealer license application or renewal. 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’s Motor Vehicle Division and conditions the license on a $25,000 surety bond under SDCL 32-6B-7. The bond is a consumer-and-public-protection guarantee: it stands behind clear title on the vehicles you sell and your compliance with South Dakota’s dealer laws, taxes, and fees.
It’s a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State 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 generally runs concurrent with the license period and is kept in force by a continuation certificate, so dealers who deliver clean title and keep good records treat it as a license formality, not a risk.
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 typically issued within 1–2 business days.
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 Motor Vehicle Division is waiting on one document.
$187.50 flat, short application, e-signed bond in 1–2 business days. Free until issued.