Who requires it
South Dakota Department of Revenue — Motor Vehicle Division
License & permit · South Dakota
South Dakota Motor Vehicle Dealer Bond
South Dakota vehicle and specialty dealers file a surety bond with the Department of Revenue Motor Vehicle Division before the matching dealer license issues. Amounts are $25,000 for vehicle, used-vehicle, or manufactured/mobile-home licenses; $20,000 for boat; $10,000 for emergency-vehicle or for trailers over 3,000 pounds; and $5,000 for motorcycle/off-road or snowmobile. Boat dealers may use one bond for several dealer licenses if the amount covers every license. The bond protects customers if the dealer fails on title, commits fraud, or breaks a lien warranty. Keep a current bond for each license period. If a claim is paid after a judgment, bring the bond back to the required amount. The surety must notify the department in writing of paid claims or cancellations.
Common bond amount
$5,000–$25,000
$25k vehicle / used / manufactured-mobile home; $20k boat; $10k trailer (>3,000 lbs) or emergency; $5k motorcycle/ORV or snowmobile.
How you file
File the original bond with the Motor Vehicle Division application packet
Renewal
Keep a current bond for each license period. If a claim is paid after a judgment, bring the bond back to the required amount.
Who requires it
Applicants for and holders of South Dakota vehicle, used-vehicle, motorcycle and off-road, trailer, emergency-vehicle, snowmobile, manufactured/mobile home, or boat dealer licenses filing with the Department of Revenue Motor Vehicle Division.
How much is required
Match the Title 32 chapter and license class: $25,000 for vehicle, used-vehicle, or manufactured/mobile home; $20,000 for boat; $10,000 for emergency vehicle or for trailers over 3,000 pounds; $5,000 for motorcycle/ORV or snowmobile. Multi-license boat applicants may use one bond only if it covers every license’s required amount.
How to get and file it
Confirm the dealer class and amount, arrange a South Dakota–qualified surety bond in the exact dealership legal name, and file the original with the county treasurer application packet that the Motor Vehicle Division reviews. Keep a current bond for each license period. If the surety cancels or a claim is paid, the department must get written notice. If a claim is paid after a judgment, bring the bond back to the required amount.
Cost note
The class amount is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Vehicle or used-vehicle dealer
- $25,000 (SDCL 32-6B-7)
- Motorcycle / off-road vehicle dealer
- $5,000 (SDCL 32-6B-7)
- Trailer dealer (trailers > 3,000 lbs)
- $10,000 (SDCL 32-6B-7)
- Emergency vehicle dealer
- $10,000 (SDCL 32-6B-7)
- Snowmobile dealer
- $5,000 (SDCL 32-6C-4)
- Manufactured / mobile home dealer
- $25,000 (SDCL 32-7A-5)
- Boat dealer
- $20,000 (SDCL 32-7B-6); one bond may cover multiple licenses if sized for each
Official sources
Related resources
Frequently asked questions
Do motorcycle dealers use the $25,000 vehicle bond?
No. Motorcycle and off-road vehicle dealer licenses use the $5,000 amount under SDCL 32-6B-7. A full vehicle dealer license that already authorizes motorcycle sales follows the $25,000 vehicle amount for that license.
Can one bond cover cars and boats?
SDCL 32-7B-6 allows one bond to cover multiple dealer licenses if the amount covers bonding requirements under each license. Confirm the combined amount with Motor Vehicle Division before relying on a single bond.
Related South Dakota bond guides
Mortgage Lender / Broker Bond
$25,000–$50,000
South Dakota mortgage lenders, brokerages, brokers, and originators must keep a surety bond under SDCL 54-14-24. That statute sets a $25,000 floor and requires an amount that reflects loan volume. ARSD 20:07:19:07 provides the current schedule: $25,000 when prior-year South Dakota originated, brokered, or serviced volume is under $25 million; $35,000 from $25 million through $100 million; and $50,000 above $100 million. An employed or exclusive-agent originator or broker may be covered by the employer’s bond. Keep the bond active while licensed. The surety may cancel on 30 days’ notice to you and the director. If a claim is paid, file a replacement right away.
Money Lender Bond
≤ $10,000 + $2,500 per additional license
South Dakota money lenders—including payday and title lenders licensed under chapter 54-4—must file a surety bond with the license application. SDCL 54-4-42 caps the amount at $10,000 for the first license and $2,500 for each additional license. That is a statutory maximum, not a figure we have verified as the amount Banking currently requires in every case. Confirm the exact amount with the Division of Banking for your location count before filing. The bond protects the state and people with claims under chapter 54-4. Some nonprofit and development entities must still be licensed but are exempt from the bond.
Money Transmitter Bond
$100,000–$500,000
Every South Dakota money transmitter must keep security on file with the Division of Banking. SDCL 51A-17-100 sets the amount as the greater of $100,000 or 100% of average daily South Dakota transmission liability for the latest three-month window, capped at $500,000. Firms whose tangible net worth is more than 10% of total assets post a flat $100,000 instead. With the director’s approval, a deposit can replace the bond. File through NMLS and keep the security active for the license year ending December 31. If you already post $500,000, you do not have to keep recalculating average daily liability.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a South Dakota application
South Dakota will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-12. This guide is based on verified educational content and official sources.
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