Information gathered from dor.sd.gov.
The following steps must be completed if you are selling a vehicle to a private party, whether in-state or out-of-state.
Step 1. Obtain a seller’s permit from your county treasurer’s office or online so that the buyer has a permit to drive on upon the sale of the vehicle. You must have a valid SD ID in order to print the permit from the customer portal. There is no fee for the permit, and the seller's permit is valid for 30 days.
Step 2. Pay off any liens against the vehicle and have the lien(s) properly released through the county. The lienholder must fill out a release-of-lien form within 20 days of receiving the final payment and deliver it to you. It is your responsibility to take the release-of-lien form to your county treasurer so the release can be properly recorded on the title document. If the lienholder has the title, they should forward it and the release-of-lien form to the county. Should the lienholder give you the title and form, this should be submitted to your county treasurer for release of the lien.
Step 3. If the vehicle is less than 10-years-old, complete the odometer section on the back of the title and attach to the application.
Step 4. Complete the seller information section and have the buyer complete the purchaser information on the back of the title. Make sure the buyer information is completed before signing as seller. If the buyer financed the purchase, the lienholder information section must be completed.
Step 5. Complete and give to the buyer a bill of sale containing the following information: complete description of the vehicle (year, make, model, serial number); selling price of the vehicle; date of sale; purchaser information; and signatures of the buyer and seller.
Step 6. It is required that you complete a seller's report of sale (MV2200) and submit it to your county treasurer's office within 15 days of the date of sale. The form is available at your country treasurer or online (SDCARS.org), the Division of Motor Vehicles, or from the forms section of the DMV's website.
Before buying a vehicle from a private party, check the lien section on the title to make sure there are no unreleased liens against it. If there are still outstanding liens, make sure you get a lien release.
Step 1: If the seller needs the money from the sale to pay off a lien, it is recommended that you go with the seller to the lienholder to make sure the money you give them is used for that purpose. A lien release must be attached to the title if the lien is not released by the county treasurer on the title. Buyers may also obtain the lien status of a vehicle by obtaining the VIN number and using VIN Check.
Step 2: If there are plates on the vehicle return them to the previous owner, the seller should provide you with a seller’s permit, which is valid for 30 days for movement of the vehicle. Unattached or specialty plates cannot be attached to a newly acquired plates until the title has been transferred and all associated fees have been paid.
Step 3: Within 45 days of the purchase of the vehicle, complete an application for title and registration. There may be occasions when an application is not required if all of the required information is contained on the title.
Step 4: Attach the vehicle’s title, properly transferred from the seller to you, to the completed application. Make sure both of you have accurately completed all sections under on the back of the title, including the odometer section, if applicable.
Step 5: Attach a bill of sale containing the following items: complete description of vehicle (year, make, model, serial number); selling price of the vehicle; date of sale; purchaser information; and signature of the seller. Or if the information is on the title, make sure it is completed.
Step 6: Submit your completed application along with the other documentation listed above to the treasurer of the county you live in and pay the 4% excise tax (if applicable), title fee and any required license fees to the treasurer.