Any person or business entity who sells or deals in 5 or more motor vehicles in a 12-month period (or 3 or more trailers). Required when: Required before a motor vehicle dealer license is issued. Exemptions: Persons selling fewer than 5 vehicles in a 12-month period; financial institutions; receivers; public officers;…
Overview
What it is.
Any person or business entity who sells or deals in 5 or more motor vehicles in a 12-month period (or 3 or more trailers). Required when: Required before a motor vehicle dealer license is issued. Exemptions: Persons selling fewer than 5 vehicles in a 12-month period; financial institutions; receivers; public officers;…
Who usually needs it
Any person or business entity who sells or deals in 5 or more motor vehicles in a 12-month period (or 3 or more trailers).
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateSDBond amount$25,000Term lengthContinuousObligeeSouth Dakota Department of Revenue, Motor Vehicle DivisionRenewalThe bond must be maintained continuously. Dealers verify possession of the bond on the annual renewal license notice sent by the Department of Revenue.Bond classLicense BondCategoryMotor VehicleBondMotor Vehicle Dealer BondStatutory referenceSDCL 32-6B-7JurisdictionState
