Dealer Licenses
Who must obtain
Filing the application
Initial/Renewal dealer license fees
Principal place of
business requirement
Obtaining dealer
license plates
Other requirements
Denial, suspension, or revocation of license
Out-of-state dealer
permits
- No person may engage in the business, either exclusively or in
addition to any other occupation, of selling, or may offer to sell,
display, or advertise the sale of new or used vehicles or boats, without a
license. A violation is a Class 1 misdemeanor. A second or
subsequent violation is a Class 6 felony.
No person may act as, offer to act as, or hold himself or herself out to
be a broker. A violation is a Class 2 misdemeanor.
- Exceptions:
- Any receiver, trustee, administrator, executor,
guardian, or other person appointed by or acting under the judgment or
order of any court.
- Any public officer while performing the officer's
official duties.
- Any employee of any person licensed as a dealer if
engaged in the specific performance of the employee's duties.
- Any person not engaged in the sale of vehicles as a
business who operates fleets of vehicles is disposing of vehicles used
in the person's business, if the same were acquired and used in good
faith and not for the purpose of avoiding the provisions of this
chapter.
- Any regulated lenders as that term is defined in
§
54-3-14, any insurance company authorized to do business in this state
or any financing institution as defined in and license pursuant to
chapter 54-7 that acquires vehicles/boats as an incident to its regular
business.
- Any financial institution chartered or licensed in any
other jurisdiction that acquires vehicles/boats as an incident to its
regular business and sells such vehicles/boats to dealers licensed under
this chapter.
- Any vehicle rental and leasing company that sells its
used vehicles to dealers licensed under this chapter.
- Any nonprofit automobile club if selling automobiles
twenty years old or older under the provisions of Chapter 32-3.
- Any person engaged in the business of manufacturing or
converting new vehicles/boats if selling such vehicles/boats to a
licensed dealer holding a franchise from the original manufacturer of
the vehicle/boat.
- Any person who sells less than five vehicles/boats in a
twelve-month period, unless the person is licensed as a dealer in
another state or holds himself or herself out as being in the business
of selling vehicles/boats. However, if the vehicles are travel
trailers, any person who sells less than three travel trailers in a
twelve-month period.
- Any person acting as an auctioneer if auctioning South
Dakota titled vehicles for a licensed dealer or a person who is exempt
from the provisions of this chapter.
- Any towing agency that acquires and sells a vehicle
which has been towed at the request of a private landowner under the
provision of chapter 32-36 or at the request of a law enforcement
officer, if no vehicle is sold for an amount over two hundred dollars.
- Any person not engaged in the sale of vehicles/boats as
a business and is disposing of vehicles/boats used solely for personal
use if the vehicles/boats were acquired and used in good faith and not
for the purpose of avoiding the provisions of this chapter.
Return to
top
- Application must be made to the office of the county treasurer of the
county in which such dealership is located. Dealers may not legally
operate until such time as the current license has been issued.
- The initial/renewal dealer license fees are:
- Vehicle dealer/used vehicle dealer -- $250/initial,
$100/renewal
- Mobile home dealer -- $250/initial, $75/renewal
- Motorcycle dealer -- $200/initial, $75/renewal
- Trailer dealer -- $75/initial, $50/renewal
- Boat dealer -- $200/initial, $100/renewal
- Before a dealer's license may be issued to any person, firm, or
corporation engaged in the business of selling motor vehicles,
motorcycles, house trailers, trailers, snowmobiles, or boats, the
following must be submitted with the application for dealer license:
- A corporate bond, issued by a corporate surety which has
been authorized to do business in this state, in the amount of $25,000
for new and used motor vehicles and mobile homes;
$10,000 for trailers (2,000 pounds and
over); $20,000 for boats; and $5,000 for motorcycles and snowmobiles, for the
use and benefit of any purchaser or holder of lien and conditioned to
pay all loss, damages and expenses that may result because of failure to
title, or because of any fraudulent misrepresentation or breaches of
warranty as to freedom of liens. Any such dealer renewing
his South Dakota dealer license, and who has already filed such surety
bond with the department, need not file any further bond; unless the
dealership name changes.
- A public liability insurance policy of not less than
$300,000 for vehicle dealers, used vehicle dealers and motorcycle
dealers. This is not required of trailer dealers, snowmobile
dealers, mobile home dealers, and boat dealers.
Return to
top
- Principle place of business.
- All applicants and existing dealerships must have a
principal place of business that conforms to the laws and rules under
dealer licensing. For vehicle, used vehicle, motorcycle, trailer,
and boat dealers, this requires an enclosed permanent structure located
within the state, easily accessible and open to the public at all
reasonable times. There must be an improved area adjoining the
building that is large enough to display five or more vehicles/boats of
the type the dealer is licensed to sell.
- The principle place of business location must accord to
all applicable land use ordinances, building codes and zoning. It
is the location that all books, records and files necessary to conduct
business are kept and maintained. In no event may rooms in a
hotel, motel, apartment house, or any part of a single or multiple unit
dwelling house be considered a "principal place of business", unless the
entire ground floor is devoted principally to, and occupied for,
commercial purposes.
- The principal place of business must have separate
office space for conducting business if more than one business occupies
the structure.
- The licensed dealer must be open for business on a
continuing basis, with normal business hours posted in a place visible
for viewing by the public.
- The dealership must maintain a telephone and telephone
number in the name of the business.
- In the event the principal place of business is in a
structure which houses more than one business, the dealer's office must
be separate from the other business.
- A dealer inspector must inspect all principal places of
business and certify they are in accordance with the law before a dealer
license is issued.
- Principal place of business for mobile/manufactured homes.
- The place of business for mobile/manufactured home
dealers may not be a tent, temporary stand or other temporary quarters,
nor permanent quarters occupied pursuant to any temporary arrangement.
- The license may use unimproved lots and premises for
sale, storage and display of mobile homes and manufactured homes.
- A licensee may use a residence located within or
adjacent to his mobile home park or a manufactured home park as a
principal place of business, unless prohibited by local zoning.
- Snowmobile dealers do not have a principal place of business
requirement.
- Any applicant who is moving his dealership to a new location must
obtain permission from the DRR.
Return to
top
- Licensed motor vehicle dealers may purchase special dealer license
plates for use on their vehicles. Each set of dealer license plates
shall cost $42. Licensed motorcycle dealers, trailer dealers, and
mobile home dealers may purchase dealer metal number plates. The fee
for each plate is $10. Licensed boat dealers may purchase dealer
plates. The fee for each set of plates is $20.
A new or used vehicle dealer may purchase special commercial dealer
license plates for use on their vehicles. The fees for each set of
plates is based on the commercial/declared gross weight fee schedule.
- Application for dealer license plates and license fees are to be
submitted to the county treasurer.
- Dealers must have a valid dealer's license for the year
of dealer license plates they are wishing to obtain before such dealer
license plates can be issued.
- Dealer license plates are to be used only on
vehicles/boats owned by the dealer.
- Dealer license plates shall not be used for lease, hire,
wreckers, tow cars, or service trucks.
- Dealer license plates shall not be loaned or left
attached to any vehicle/boat sold by dealer.
- Dealer license plates may be transferred from one
vehicle/boat to another when owned by the dealer.
- Commercial dealer plates:
- May only be used to transport inventory
replacement vehicles.
- May be transferred from one vehicle owned by the
dealer to another.
- The vehicle must comply with all provisions
pertaining to overweight operators.
- The maximum license gross weight may not exceed
26,000lbs.
- All dealer license fees, dealer license plate fees, and appropriate
application forms shall be invoiced daily into the department on the
noncommercial daily invoice.
- Any seller of a motor vehicle/boat shall, on demand by the Secretary
of Revenue, make available all books, records and memoranda that relate to
the sale of a motor vehicle/boat. The Secretary, in the event of any
failure or refusal to produce such records, may conduct or cause to be
conducted an audit of the books and records of any licensed dealer.
- All books, records, and memoranda that relate to the sale of a motor
vehicle/boat shall be retained for five years.
Return to
top
- Grounds for denial, suspension or revocation of license. The
department may deny any application, or suspend or revoke any license
issued for a violation of any of the following:
- Commission of fraud or willful misrepresentation in the
application for or in obtaining a license.
- Conviction of a felony involving vehicle/boat theft or
vehicle odometer fraud in the last five years.
- Second or subsequent violation of any law of this state
which relates to dealing in vehicles/boats.
- Repeated failure to comply with any administrative rule
promulgated by the department.
- Willful failure to allow department inspections,
including initial and annual inspections, complaint investigations and
necessary follow-up inspections.
- Willful misrepresentation through false, deceptive or
misleading statements with regard to the sale or financing of
vehicles/boats which a dealer has, or causes to have, advertised,
printed, displayed, published, distributed, broadcast, televised or made
in any manner with regard to the sale or financing of vehicles.
- Refusal to comply with licensee's responsibility under
the terms of the new vehicle/boat warranty issued by its respective
manufacturer, unless such refusal is at the direction of the
manufacturer.
- Repeated failure to provide customers or purchasers with
a vehicle odometer disclosure statement.
- Willful failure to comply with the terms of any bona
fide written, executed agreement pursuant to the sale of a vehicle/boat.
- Inability to obtain or renew surety bond or to
participate in a dealer asset pool.
- Failure to maintain and continuously occupy a principal
place of business.
- Failure to obtain or renew a public liability insurance
policy of not less than three hundred thousand dollars.
- The department may serve written notice upon a licensee that has
violated provisions contained in section "15" above. The notice will
state that the DRR intends to revoke or cancel the license 30 days after
the notice is sent by certified mail or hand delivered and informs the
licensee that he/she is entitled to a hearing if the licensee submits a
written request prior to the effective date of the revocation.
The notice may contain the requirements the licensee must meet to correct
the violation or to come into compliance.
Return to
top
- Types of permits available:
|
Type of Permit |
Issue Period |
Fee |
| Motorcycle Manufacturer - Display Only |
10 Days |
$150; $100 if purchased 5 days before event |
| Motorcycle Customizer - Display Only |
10 Days |
$150; $100 if purchased 5 days before event |
| Trailer Manufacturer - Display Only |
10 Days |
$75; $50 if purchased 5 days before event |
| Motorcycle Dealer (NEW) -
Sell * |
10 Days |
$300; $200 if purchased 5 days before event |
| Motorcycle Dealer Selling USED
Motorcycles Only - Sell |
10 Days |
$300; $200 if purchased 5 days before event |
| Boat and Boat Trailer Dealer (NEW OR USED) -
Sell |
10 Days |
$200 |
| Trailer Dealer (NEW) - Sell * |
10 Days |
$225; $150 if purchased 5 days before event |
| Trailer Dealer (NEW) - Display Only
** |
10 Days |
$225; $150 if purchased 5 days before event |
| Trailer Dealer Selling USED Trailers
Only - Sell |
10 Days |
$225; $150 if purchased 5 days before event |
* The permit can only be issued if the motorcycles or
trailers being sold are not franchised in South Dakota.
|
** Allows for the DISPLAY ONLY of a new trailer(s)
already franchised in South Dakota.
|
-
Application for Temporary
Manufacturer, Customizer or Dealer Permit (PDF)
Return to top
Return to
State Index Page
Return to Motor Vehicle Page |