Surety bonds • South Dakota
South Dakota Auto Dealer Bond: $25,000 Requirement and Cost
Under SDCL 32-6B-7, South Dakota vehicle and used vehicle dealers must file a $25,000 surety bond before a license is issued. Motorcycle and off-road dealers need $5,000, and trailer and emergency vehicle dealers need $10,000. Published prices for the $25,000 bond start around $175 a year.
This guide covers bond amounts, who the bond protects, and cost. Blake Insurance Group is an independent agency, and a licensed agent can help with your bond and dealer insurance.
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Bond amounts
| Dealer type | Bond amount |
|---|---|
| Vehicle and used vehicle dealer | $25,000 |
| Motorcycle and off-road dealer | $5,000 |
| Trailer dealer (trailers over 3,000 pounds) | $10,000 |
| Emergency vehicle dealer | $10,000 |
Source: SDCL 32-6B-7.
Who the bond protects
- The bond protects any customer who suffers a loss from failure to deliver title, fraudulent misrepresentation, or breach of warranty against liens.
- The bond covers the license period, with a new bond or continuation certificate due each period.
- Members of an incorporated dealers association may pool assets to meet the bond requirement.
Source: SDCL 32-6B-7.
How much a South Dakota dealer bond costs
| Bond | Published price |
|---|---|
| $25,000 vehicle dealer | From $175 |
| $10,000 trailer or emergency vehicle | From $100 |
| $5,000 motorcycle | From $50 |
Prices published by SuretyBonds.com; rates depend on credit.
Bond vs. dealer insurance
The bond protects customers, not the dealership. Dealers usually also carry garage liability, dealer’s open lot, and commercial auto insurance. See our surety bond vs. insurance guide.
South Dakota auto dealer bond FAQs
How much is a South Dakota dealer bond?
$25,000 for vehicle and used vehicle dealers. Published prices start around $175 a year.
How much is a South Dakota motorcycle dealer bond?
$5,000.
Who does the South Dakota dealer bond protect?
Customers who suffer losses from title failures, fraud, or lien problems.
Related guides
Important information
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Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your dealership, and a licensed agent will help with your South Dakota dealer bond, or start a bond quote online with our partner.
