Who Needs A License
Generally, no person may engage in the business of selling or advertising the sale of new or used vehicles or boats, without a dealer 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.
The actual (paper) dealer license is issued for a 5-year period, unless canceled or revoked for cause by the Division of Motor Vehicles; however, each year, a License Renewal Notice and Billing is sent out by the division approximately 3 months before the expiration of the license.
The initial dealer and renewal license fees are:
Vehicle dealer/used vehicle dealer - $300/initial, $175/renewal
Mobile home dealer - $300/initial, $150/renewal
Motorcycle dealer - $250/initial, $150/renewal
Trailer dealer - $125/initial, $100/renewal
Boat dealer - $250/initial, $175/renewal
Click here for license renewal information.
Before a dealer's license may be issued, the following must be submitted with the application for dealer license:
A surety bond issued by a bonding company qualified to do business in South Dakota. Any 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.
New and used vehicle, mobile homes - $25,000
Trailers (over 3,000 pounds) - $10,000
Boats - $20,000
Motorcycles and snowmobiles - $5,000
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.
Dealer Licensing Office - Provides information on licensing/renewal requirements, principal place of business requirements, bonding and insurance requirements, fees, dealer plates and permits, title and registration, recordkeeping requirements, violation penalty provisions, etc
445 E. Capitol Avenue, Pierre, SD 57501 | Phone: 605-773-4416 | Fax: 605-773-2549
Motor Vehicle Information Section - For general motor vehicle questions, titling and registration.
445 E. Capitol Avenue, Pierre, SD 57501 | Phone: 605-773-3541 | Fax: 605-773-2550
Dealer Inspector - Answers dealer business questions, provides training and instruction on compliance and procedures, enforces laws and regulations, investigates complaints and violations, conducts inspections, etc
South Dakota Department of Revenue
445 East Capitol Avenue
Pierre, SD 57501-3185
E-Mail Address: email@example.com
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