How To Sell a Car in South Dakota

Selling a vehicle in South Dakota requires compliance with state rules governing title transfer, ownership documentation, odometer disclosure, sales tax, and registration. The South Dakota Department of Revenue Motor Vehicle Division administers these requirements for all private vehicle transactions.

What You Need To Know Before Selling a Car in South Dakota

Title Law and Ownership Requirements

Under SDCL 32-3, a certificate of title is required for motor vehicles operated on public roadways or waterways. The owner must ensure that the title is accurate, current, and free of liens before transferring ownership to a purchaser. The seller is responsible for delivering a properly signed title to the buyer within the transaction timeline.

Vehicles Exempt From Title Requirements

Most motor vehicles operated on public roadways, highways, or waterways require a South Dakota title. However, SDCL 32-3 provides limited exemptions, including mopeds with motors of 50 cubic centimeters or smaller, which have optional titling. Certain vehicles designed exclusively for off-road use may also be exempt from mandatory titling requirements.

Satisfying an Existing Lien

If a lien is noted on the certificate of title, the lienholder must release the lien before the vehicle can be sold. The lienholder is responsible for executing and delivering a release to the owner within 20 days after final payment is received. Once the lien release is received, the owner may proceed with the sale. When lien notation appears on an existing South Dakota title, the county treasurer may release the lien upon presentation of a satisfaction notice, with no fee assessed.

Inspection and Emissions Requirements

South Dakota does not require a private-party seller to obtain a vehicle safety inspection or emissions test before completing a sale. The buyer, upon taking ownership, must apply for a new title within 45 days of purchase.

Odometer Disclosure Requirements

Under SDCL 32-3-30.1, the seller must accurately complete odometer disclosure information for vehicles less than 20 model years old and weighing less than 16,000 pounds. The odometer reading must be disclosed at the time of transfer and certified on the title application form or a separate disclosure statement. Failure to provide an accurate odometer disclosure may result in federal penalties.

Documents Required To Sell a Car in South Dakota

Certificate of Title

The original certificate of title is the primary legal document establishing ownership. On the reverse side of the title, the seller must complete the assignment section with the following information: the buyer's full legal name and address, the date of sale, the odometer reading if applicable, and the seller's signature exactly as printed on the front of the title. If joint ownership appears on the title with "AND" between the names, both owners must sign. If the names are joined by "OR," only one owner's signature is required.

Bill of Sale

A Bill of Sale (Form 1025) is required by most county licensing officials for all private vehicle transfers. The bill of sale must contain the full names and addresses of both the buyer and seller, the date of sale, the vehicle identification number, make, year, model, body type, purchase price, and signatures of both parties. Both the seller and buyer should retain signed copies for their records.

Odometer Disclosure Statement

For vehicles subject to odometer disclosure requirements, the seller must complete the odometer section on the Application for Motor Vehicle and Boat Title & Registration (Form 1001) or provide a separate written odometer disclosure statement. The disclosure must certify the actual mileage or indicate if the mileage exceeds the vehicle's mechanical limits or if the odometer reading is not the actual mileage. Both the seller and buyer must sign this disclosure.

Seller's Permit

A seller's permit is a free, temporary license that allows the buyer to operate the vehicle for 45 days following the sale while the title transfer is processed. The seller must obtain and provide the Seller's Permit to the buyer at the time of sale. The seller may obtain this permit online through the state portal or at the local county treasurer's office.

How To Transfer a Car Title in South Dakota

Step 1: Review the Title Before the Sale

The seller must verify that the title is in hand and reflects current ownership. If the title has been lost or misplaced, the seller must apply for a duplicate title from the county treasurer's office before proceeding with the sale. Any liens or other notations on the title must be resolved or released prior to sale completion.

Step 2: Complete the Title Assignment

The seller completes the assignment section on the reverse of the original title, entering the buyer's full legal name and address, the date of sale, the odometer reading if required, and the seller's signature exactly as it appears on the front of the title. Care must be taken to ensure all information matches supporting documents precisely, as the Motor Vehicle Division will reject any altered or incorrect title.

Step 3: Prepare Required Disclosure and Sales Documents

The seller and buyer jointly complete the odometer disclosure section on the title or on a separate statement if the vehicle is less than 20 model years old and weighs less than 16,000 pounds. A bill of sale containing all required information is prepared and signed by both parties at the time of transfer. Both the seller and buyer receive signed copies.

Step 4: Obtain the Seller's Permit

The seller obtains a free Seller's Permit online through the my605drive portal or at the county treasurer's office. The permit is valid for 45 days and must be provided to the buyer to allow operation of the vehicle during the title transfer period.

Step 5: Deliver Documents to the Buyer

At the time of sale, the seller delivers to the buyer the properly assigned original certificate of title, a signed copy of the bill of sale, the completed odometer disclosure, and the Seller's Permit. The buyer is then responsible for submitting an Application for Motor Vehicle and Boat Title & Registration (Form 1001) to a county treasurer's office within 45 calendar days of the purchase date.

Step 6: Buyer Applies for New Title Through County Treasurer

The buyer completes the title application and submits it with the assigned title and other required documents to the local county treasurer's office within 45 days. Late applications are subject to interest and penalty fees assessed against the motor vehicle excise tax. If the buyer requires additional time beyond 45 days, a temporary permit may be obtained for $1 per day for up to 15 additional days.

Title Transfer Fee Schedule in South Dakota

South Dakota may collect the following title transfer fees at the time of application:

County treasurers may also assess an administrative fee. Sellers should contact their county treasurer for additional local fees that may apply.

Sales Tax on Private Vehicle Sales

Motor vehicles purchased in South Dakota are subject to a 4% motor vehicle excise tax applied to the purchase price. The buyer pays the excise tax at the time of title and registration application at the county treasurer's office within 45 days of purchase. Interest and penalty charges apply if the title application is submitted after 45 days from the purchase date.

Certain limited categories of vehicles, such as titled vehicles sold by non-dealers that are 11 or more model years old and sold for $2,500 or less, may be exempt from the motor vehicle excise tax under SDCL 32-5B-2. No state sales tax is charged on private vehicle transfers.

What To Do After Selling Your Car in South Dakota

Report the Sale to the Department of Revenue

The seller should report the sale or transfer of the vehicle to the South Dakota Department of Revenue to release liability for the vehicle. A Seller's Report of Sale may be completed and submitted online through the state portal or obtained from the county treasurer's office. This report protects the seller from liability resulting from the operation or movement of the vehicle after the date of sale.

Remove and Handle License Plates

License plates remain the property of the owner and do not transfer with the vehicle. The seller should remove the license plate from the vehicle before completing the sale. The plate may be retained for transfer to a replacement vehicle or voluntarily surrendered to the county treasurer's office.

Cancel Vehicle Insurance

After the sale is finalized, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle or transfer the policy to a replacement vehicle. Continuing insurance coverage on a vehicle no longer owned may result in unnecessary premium charges.

Retain Copies of All Transaction Documents

The seller should retain copies of the completed bill of sale, Seller's Report of Sale, odometer disclosure, and any other transaction documents. These documents may be required to establish proof of sale in the event of future liability disputes or inquiries from the Motor Vehicle Division.

Contact Information

South Dakota Department of Revenue — Motor Vehicle Division
445 East Capitol Avenue, Pierre, SD 57501
Phone: (605) 773-3541
Official Website: South Dakota Motor Vehicle Division