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All state guides South Dakota dealer license

How to get a used car dealer license in South Dakota

You apply to the South Dakota Department of Revenue, Motor Vehicle Division, working with your regional dealer agent. You need a $25,000 surety bond, $300,000 in public liability insurance and a commercial building with a display area for five vehicles, which an agent inspects before the license is issued.

  • Sourced to SD DOR
  • Checked October 2026
  • Free
License
Used vehicle dealer's license
Surety bond
$25,000
State fee
$300
Pre-license course
None required
Background check
Signed no-conviction certification
License term
Renew every year, $175
What the state asks for

South Dakota dealer license requirements

The figures a first-time used car dealer needs before applying to SD DOR. Each row shows how well it is supported.

Surety bond
$25,000Official source

A surety bond from a company qualified to do business in South Dakota. It covers the license period and protects customers against title failures, fraud and undisclosed liens.

State license fee
$300Official source

The initial fee for a used vehicle dealer's license, due before the license is issued. Dealer 77 plates are $101 per set. Renewal is $175 a year when you file before the license expires.

Pre-license education
None requiredOfficial source

No course is on SD DOR's list of items to submit with the application. The Motor Vehicle Division offers one-on-one training through its dealer agents.

Background check
Signed no-conviction certificationOfficial source

On the application you certify that no applicant, partner, member, officer or financial backer was convicted of a vehicle theft or fraud crime in the last five years. State law lists no fingerprint step.

Insurance
$300,000 public liabilityOfficial source

You certify that you hold a public liability policy of at least $300,000. SD DOR's Dealer Manual describes the required coverage as commercial liability insurance.

Business location
Commercial building + 5-vehicle lotOfficial source

An enclosed commercial building with a heated, lighted permanent office, open at least 20 hours a week between 8 a.m. and 8 p.m., with an adjoining improved display area for five or more vehicles.

License term and renewal
Renew every year, $175Official source

You renew every year for $175. A late renewal costs the $300 initial fee. SD DOR's web page says the paper license is issued for 5 years, while its May 2025 Dealer Manual says the initial license is valid for 12 months.

Sales allowed without a license
4 in 12 monthsOfficial source

You are exempt if you sell fewer than five vehicles in a 12-month period, unless you are licensed as a dealer in another state or hold yourself out as being in the business of selling vehicles.

Processing time
Not publishedConfirm with the agency

SD DOR does not publish a processing time. Its brochure says any missing document will delay the application.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

South Dakota Department of Revenue, Motor Vehicle Division

License you apply for

Used vehicle dealer's license

Official licensing page

Five-year paper license, yearly renewal

SD DOR's dealer licensing page says the paper license is issued for 5 years, with a renewal notice and fee due every year. Its Dealer Manual (revised May 2025) says the initial license is valid for 12 months and is renewed annually online. Either way you pay a renewal every year. Ask your dealer agent for your exact expiration date and renewal month.
Step by step

How to get a South Dakota dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Contact your regional dealer agent

    SD DOR assigns dealer agents by territory, with offices in Sioux Falls, Rapid City and Aberdeen and the dealer licensing office in Pierre. Call the agent for your area early. The agent answers licensing questions and is the person who inspects your location before a license is issued.

    dealerprogram@state.sd.us

  2. Set up the business

    Form the business and settle the legal name before you sign a lease or buy the bond and insurance, so every document shows the same name and address. The application asks for the owners, partners, officers or members and a list of financial references.

    SDCL 32-6B-6

  3. Qualify the location

    Get a letter from the city or county zoning office approving a vehicle dealership at the address. If you rent, the lease has to state that a vehicle dealership is allowed. The site needs an enclosed commercial building with a permanent office, a display area for five vehicles, a permanent exterior sign, and posted hours and phone number.

    SDCL 32-6B-2

  4. Buy the bond and insurance

    Get a $25,000 surety bond from a surety company qualified to do business in South Dakota and a public liability policy of at least $300,000. Both are submitted with the application.

    $25,000 bond, $300,000 liability

  5. Apply in the dealer system and pay the fee

    File the dealer license application in SD DOR's online dealer system at my605drive.sd.gov with the zoning letter, lease, bond and insurance. The initial fee for a used vehicle dealer's license is $300. Missing documents delay processing.

    $300 initial fee

  6. Pass the dealer agent inspection

    A dealer agent inspects the proposed location and confirms it meets the principal place of business rules before the license is issued. The department also verifies the facts in every first-time application. Do not make any sales until you are licensed.

    Inspection before issuance

  7. Order plates and set up your records

    Dealer 77 plates cost $101 per set. Keep a ledger of every vehicle you buy and sell, with titles and sale documents, at the principal place of business. Records must be available for inspection during business hours and kept for 5 years after the date of sale.

    Dealer 77 plates: $101 per set

Practical advice

Call your dealer agent before you sign a lease and ask the agent to look over the building, display area and sign plan, because the location is inspected before a license is issued. Make sure the lease says a vehicle dealership is allowed, since SD DOR asks for that wording. The under-five-sales exemption does not cover you if you buy vehicles to resell them or present yourself as a dealer.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

South Dakota dealer location requirements

What the state checks at the business address.

  • An enclosed commercial structure in South Dakota, easily accessible and open to the public at least 20 hours a week between 8 a.m. and 8 p.m.
  • An improved display area immediately adjoining the building, large enough for five or more vehicles.
  • An enclosed permanent office on site that is adequately heated and lighted. It cannot be your residence.
  • Office hours and a working phone number posted at or near the main entrance to the office.
  • An exterior sign with the business name, permanently fixed to the land or building and legible from the public right-of-way.
  • Books, records and files kept at the location. A room in a house, apartment, hotel or motel does not qualify.
  • A city or county zoning letter approving a vehicle dealership and, if you rent, a lease stating that a vehicle dealership is allowed.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a South Dakota dealer license

Renewal and ongoing duties

Renew every year before the license expires. The renewal fee is $175, and a late renewal costs the $300 initial fee. Keep the bond, the $300,000 liability policy and the principal place of business in place, and stay open at least 20 hours a week. A dealer agent may inspect the dealership each year or after a complaint. Give 30 days' written notice before a move in the county.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

South Dakota dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in South Dakota?

Contact your regional SD DOR dealer agent, then apply in the department's online dealer system. Submit a city or county zoning letter, your lease, a $25,000 surety bond and proof of at least $300,000 in public liability insurance, and pay the $300 initial fee. A dealer agent inspects the location before the license is issued.

How much is the dealer bond in South Dakota?

$25,000 for a used vehicle dealer's license, the same amount as for a new vehicle dealer. The bond comes from a surety company qualified to do business in South Dakota and protects customers against title failures, fraudulent misrepresentation and undisclosed liens.

How much does a South Dakota dealer license cost?

The initial license fee is $300 and renewal is $175 a year. If you renew after the license expires you pay the $300 initial fee again. Dealer 77 plates are $101 per set. You also pay for the $25,000 bond and a public liability policy of at least $300,000.

Do I need a pre-licensing course in South Dakota?

No. SD DOR does not list a pre-licensing course among the items to submit with a dealer application. The Motor Vehicle Division offers one-on-one training through its dealer agents.

Can I get a South Dakota dealer license without a car lot?

No. State law requires a principal place of business: an enclosed commercial building with a permanent office, open to the public at least 20 hours a week, with an adjoining improved display area for five or more vehicles and a permanent exterior sign. Your residence does not qualify.

How many cars can I sell in South Dakota without a dealer license?

Four. A person who sells fewer than five vehicles in a 12-month period is exempt, unless that person is licensed as a dealer in another state or holds themselves out as being in the business of selling vehicles. SD DOR's brochure adds that if you acquire a vehicle intending to sell it, you need a license.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with SD DOR or your attorney before you sign a lease or pay a fee.

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