What is the South Dakota Motor Vehicle Dealer Bond?
The South Dakota Motor Vehicle Dealer Bond is a strong guarantee required by the South Dakota Department of Revenue and Regulation’s Division of Motor Vehicles from individuals who have serious intent on becoming motor vehicle dealers within the state of South Dakota.
This bond is required before conducting any business operations within the state. The said bond is likewise a tangible pledge that nobody engages in the business — either wholly or in addition to any other type of employment — of selling, offering to sell, or displaying of new or used vehicles, trailers, motorcycles, boats, mobile/manufactured homes or snowmobiles without a license as provided in the South Dakota Codified Laws 32-6B-12, 32-6C-5, 32-7A-9 and 32-7B-3.
Why do you need the South Dakota Motor Vehicle Dealer Bond?
You need the South Dakota Motor Vehicle Dealer Bond because you want to be regarded as a business owner of prudence and respectability. Simultaneously, this bond is an indispensable method of earning potential clients’ interest in your business and gain existing customers’ loyalty. Owning this bond makes you a trustworthy motor vehicle dealer who deserves a highly regarded niche within the motor vehicle dealership industry.
More details about the South Dakota Motor Vehicle Dealer Bond
Before obtaining the South Dakota Motor Vehicle Dealer Bond, you must have a 1) filled up Original Application for Three Year Vehicle Dealer Certificate as a Dealer or Rebuilder of Vehicles, 2) a liability insurance certification, and 3) education certificate from an approved provider or DMV’s Education Requirements Certificate of Exemption Form and your fee payments.
What is the cost of a South Dakota Motor Vehicle Dealer Bond?
The South Dakota Motor Vehicle Dealer Bond amount is dependent on the type of vehicles the dealer plans to handle.
- Vehicle Dealer – $25,000
- Used Vehicle Dealer – $25,000
- Mobile/Manufactured Home Dealer – $25,000
- Motorcycle Dealer – $5,000
- Trailer Dealer – $10,000 for trailers weighing more than 3,000 pounds
- Snowmobile Dealer – $5,000
- Boat Dealer – $20,000
- Emergency Vehicle Dealer – $10,000
- Final Stage Manufacturer Dealer – $25,000
Premium payments for this bond are reliant on the motor vehicle’s credit history, current credit score, and present-day financial status. If a motor vehicle dealer has an excellent credit mark and decent business performance, a lower premium rate can be availed of.
How do I get the South Dakota Motor Vehicle Dealer Bond?
Getting a South Dakota Motor Vehicle Dealer Bond is simple. Contact a genuine surety bond practitioner for rapid processing and be afforded professional treatment. Choose the one who can provide you prompt and efficient service.