A South Dakota motor vehicle dealer bond is required of all parties that make a living by negotiating the exchange of motor vehicles. The state statute defines a dealer as any person who, for commission or with intent to make a profit or gain, sells, exchanges, rents with option to purchase, offers or attempts to negotiate a sale or exchange of new, or new and used vehicles, or who is engaged wholly or in part in the business of selling new, or new and used vehicles (32-6B-1). The South Dakota motor vehicle dealer bond must be delivered to the Department of Motor Vehicles executed by the applicant as principal and by a surety company qualified to do business in the state before a license will be issued. The South Dakota auto dealer bond must be for an amount based upon the type of license applied for, as follows: (1) Vehicle dealer’s license–$25,000 surety bond; (2) Used vehicle dealer’s license–$25,000 surety bond; (3) Motorcycle dealer’s license–$5,000 surety bond; (4) Trailer dealer’s license–$10,000 surety bond for trailers weighing more than 3,000 pounds; or (5) Emergency vehicle dealer’s license–$10,000 surety bond. The South Dakota motor vehicle dealer bond obligation guarantees that the dealer will pay all loss, damages and expense that are occasioned by reason of the failure of any title of any motor vehicle or by reason of any fraudulent misrepresentation or breach of warranty as to freedom of liens of any motor vehicle. The bond shall be for the license period. A new bond or a proper continuation certificate must be delivered to the department at the beginning of each license period. South Dakota surety leader, Surety One, Inc. offers motor vehicle dealer bonds in all states where they are required. Our special programs allow us to offer you bonding regardless of your credit and financial condition. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a South Dakota motor vehicle dealer bond application or for information on any surety bond need.
