Dealer Surety Bond in South Dakota: $10,000–$100,000 Requirement
South Dakota requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in South Dakota
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in South Dakota
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
South Dakota-Specific Note
South Dakota-Specific Facts for Dealer Surety Bond
South Dakota Vehicle transfer fees and requirements
In South Dakota, the title transfer fee is $10 and registration costs Based on vehicle weight and age; $36 - $144+. Vehicle sales are subject to 4% motor vehicle excise tax plus municipal taxes. South Dakota does not require notarization for private-party vehicle transfers. South Dakota does not require emission testing for private-party vehicle sales.
- 4% motor vehicle excise tax on purchase price
- Wheel tax varies by municipality
- Title transfer at county treasurer office within 30 days
South Dakota sales tax on vehicle purchases
South Dakota has a 4% state sales tax rate. 4% motor vehicle excise tax plus municipal taxes. Private-party vehicle sales in South Dakota are subject to sales tax. Motor vehicle excise tax applies to all sales. The title transfer fee is $10.
South Dakota bill of sale statistics
BillOfSaleNow has generated 223 bill of sale documents for South Dakota transactions, with 6 generated this month alone. The most popular vehicle type is car.
More South Dakota Vehicle Guides
- GAP Insurance Claim in South Dakota
- Government Surplus Vehicle in South Dakota
- Hit-and-Run Vehicle Claim in South Dakota
- Hold Harmless Vehicle Sale in South Dakota
- Insurance Required to Register in South Dakota
- Junk Title Conversion in South Dakota
Each guide is written specifically for South Dakota laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in South Dakota?
South Dakota requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in South Dakota?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in South Dakota?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a South Dakota dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in South Dakota?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.