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

To get a used car dealer license in South Dakota, most applicants need a properly zoned business location, a business entity and tax registration, a dealer surety bond and liability insurance, and a completed application with all required fees. Many states also require background checks and, in some cases, pre-licensing education. You should always confirm details with the official South Dakota licensing authority.

South Dakota used car dealer license requirements (2025 overview)

This page outlines the high-level concepts most independent used car dealers consider when applying for a dealer license in South Dakota. It is designed as a structured starting point for research and should always be paired with the latest information from your official state licensing agency.

Important: Rules, fees, bond amounts, and forms change over time. Always confirm details with the official South Dakota dealer licensing authority before applying.

1. Typical regulator for dealer licenses in South Dakota

In most states, used car dealer licenses are handled by a Department of Motor Vehicles (DMV), a Motor Vehicle Division (MVD), a state Department of Revenue, or an independent motor vehicle dealer board. That agency reviews applications, conducts site inspections, issues licenses, and enforces dealer laws and regulations.

2. Common dealer license types

Retail (used) dealer: Sells used vehicles directly to the public from a licensed location.
New (franchise) dealer: Sells new vehicles under a franchise agreement with a manufacturer.
Wholesale dealer: Buys and sells vehicles only with other licensed dealers; no retail sales to the public.
Auction or broker licenses: Some states have separate categories for auction dealers and brokers.

3. Core requirements most states impose

Every state sets its own rules, but dealers typically need to address the following:

A permanent business location and display area that meet local zoning rules.
A business entity registration and federal Employer Identification Number (FEIN).
State sales tax registration if applicable.
A dealer surety bond in an amount set by state law.
Garage liability or commercial auto liability insurance.
Background checks for owners and key personnel, and sometimes fingerprints.
Completed application forms and payment of all required fees.

4. Typical application steps

Plan your business model and choose the correct license type.
Secure a location that meets zoning and display requirements.
Set up your office, signage, and recordkeeping systems.
Obtain a dealer surety bond and required insurance.
Complete all state application forms and gather supporting documents.
Submit your application and fees to the correct state agency.
Complete any required inspections or pre-licensing education.

5. Next steps for South Dakota dealers

Use this overview as a checklist, then locate the official South Dakota dealer licensing website by searching for:

South Dakota motor vehicle dealer license application
South Dakota used car dealer license requirements

Rely on official .gov or clearly identified state agency sites for the final word on forms, fees, and bond amounts.