How to get a dealer license in South Dakota

Anyone who engages in the business of selling vehicles, whether full time or along with another occupation, must be licensed before any sales (SDCL 32-6B-4). SDCL 32-6B-5 exempts 'any person who sells less than five vehicles 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.' The Department says that if you acquire a vehicle with the intention to sell it, you need a license. A first violation is a Class 2 misdemeanor, and a second or later violation is a Class 1 misdemeanor.

• Used vehicle dealer: Sells used vehicles only.
• Vehicle dealer: Sells new, or new and used, vehicles under a manufacturer contract or franchise. The Dealer Manual says this license also covers motorcycles, off-road vehicles, trailers of any weight and low speed vehicles.
• Motorcycle and off-road vehicle dealer: Sells motorcycles and off-road vehicles. Needs a $5,000 bond.
• Trailer dealer: Sells trailers, semitrailers or travel trailers. Needs a $10,000 bond for trailers over 3,000 pounds.
• Emergency vehicle dealer: Sells emergency vehicles. Needs a $10,000 bond and is exempt from having its principal place of business in South Dakota.
• Final stage manufacturer: Final stage manufacturers of vehicles (SDCL 32-6B-12).
• Boat dealer: Sells boats and boat trailers (SDCL 32-7B).
• Snowmobile dealer: Sells snowmobiles (SDCL 32-6C).
• Manufactured home dealer: Sells mobile and manufactured homes (SDCL 32-7A).
• Dealer's car auction agency: Auctions only dealer-owned vehicles to dealers licensed in South Dakota or another state (SDCL 32-6B-34 and 32-6B-36).

Surety bond. SDCL 32-6B-7 requires a $25,000 bond for a vehicle dealer or used vehicle dealer, $5,000 for a motorcycle and off-road vehicle dealer, $10,000 for a trailer dealer selling trailers over 3,000 pounds, and $10,000 for an emergency vehicle dealer. The bond must come from a surety company qualified to do business in South Dakota and cover the license period, with a new bond or continuation certificate each period. Members of an incorporated automobile dealers association may form an asset pool instead (SDCL 32-6B-7.1). New vehicle dealers also need a $50,000 warranty bond unless they have a repair facility and qualified staff in the county (SDCL 32-6B-9).

Insurance. Commercial public liability insurance of at least $300,000 (SDCL 32-6B-6; Department of Revenue dealer requirements brochure).

Place of business. SDCL 32-6B-2 requires an enclosed commercial structure in South Dakota, open to the public at least 20 hours a week between 8 a.m. and 8 p.m., with an improved display area right next to the building large enough for five or more vehicles. The site must meet zoning and building codes and have an enclosed permanent office that is heated and lighted, with hours and a phone number posted at the entrance. An exterior sign with the business name must be permanently attached and legible from the public road, and the dealer's records must be kept there. Hotel rooms, apartments and homes do not qualify unless the entire ground floor is used for commercial purposes. The Department also asks for a zoning letter, a lease that allows a dealership, and a computer with internet access. A Dealer Agent inspects the site before the license is issued, and each county needs a separate license.

Background check. Applicants certify that no applicant, partner, member, officer or financial supporter has been convicted of a crime involving vehicle theft or fraud in the last 5 years (SDCL 32-6B-6). The Department may deny a license for a felony involving vehicle theft or odometer fraud within 5 years (SDCL 32-6B-41). We found no fingerprinting requirement.

Pre-license education. South Dakota does not require a pre-license course for this license.

1. Contact the Dealer Agent for your area (see the Department's territory map) to review the requirements.
2. Set up a site that meets SDCL 32-6B-2: an enclosed commercial building with a heated office, a display area for five or more vehicles, posted hours of at least 20 a week, a permanent sign, and a zoning letter.
3. Buy a $25,000 surety bond from a surety company qualified to do business in South Dakota.
4. Get commercial liability insurance of at least $300,000.
5. Apply online in the 605 Drive dealer portal with your lease, zoning letter, bond and insurance, and pay the $300 license fee.
6. Have a Dealer Agent inspect your location before the license is issued.
7. Order dealer plates at $101 per set per year, and renew the license online every year for $175.

Official forms:

• Dealer license application (online, 605 Drive)
• 45-day Title Delivery Extension Request (1403)
• Dealer Authorized Signer (1409)
• Dealer's Report of Sale (1402)

No. Every South Dakota dealer needs a principal place of business with an improved display area next to the building large enough for five or more vehicles (SDCL 32-6B-2), and we found no wholesale-only license.

A South Dakota dealer's car auction agency sells only dealer-owned vehicles to licensed dealers from South Dakota or another state, so you need a dealer license to buy there (SDCL 32-6B-34 and 32-6B-36). AuctionACCESS (auctionaccess.com), which provides credentialing for over 400 auction marketplaces and online channels across North America, limits membership to licensed vehicle dealers and their authorized representatives.

Renew every year online in the DMV Dealer System for $175. The Department posts an electronic notice on the dealer's online account 90 days before the license expires, and dealer plates bought through the Department are renewed at the same time. A new bond or continuation certificate is due each license period, and a late renewal costs the initial license fee.

This is general information, not legal advice. Rules and fees change, so confirm the details with the South Dakota Department of Revenue, Motor Vehicle Division, Dealer Licensing before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in South Dakota.