South Dakota 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; the bond is issued when you pay.
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How much does a South Dakota used dealer bond cost?
$187.50 at the $25,000 amount, the same for every applicant.
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.
Approved
Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.
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
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
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 sets the price
The premium is fixed at $187.50 at the $25,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
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 same bond in nearby states.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
The Motor Vehicle Division is waiting on one document.
$187.50 flat, short application, bond issued when you pay. Free until issued.