Who must obtain 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
Filing the application 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. Initial/Renewal dealer license fees 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
Principal place of business requirement 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
Obtaining dealer license plates 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. Other requirements 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
Denial, suspension, or revocation of license 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
Out-of-State Dealer Permits 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.