The South Dakota House of Representatives is considering a bill (S.B.
98) that would increase the damage disclosure threshold for the sale of
motor vehicles and boats. The minimum would change from $5,000 to 40
percent of the vehicle’s value or $8,000, whichever value is lower.

The bill’s proponents, including representatives from the insurance
industry and the South Dakota Auto Body Association (SDABA), believe
that increased prices for new cars, parts and labor warrant the
increase.

“It doesn’t take a whole lot to get to $5,000,” Peter Stemper of the SDABA noted at a hearing for the bill.

However, the bill’s opponents say that $8,000 is too high of a value
and that the 40 percent provision could complicate matters, as it may
be difficult to find a vehicle’s value if damage occurred several years
ago.

Rod Woelfel, treasurer of the South Dakota Independent Auto Dealers
Association (SDIADA), told the Argus Leader that he’s worried the
increased threshold could entice people from other states to bring
damaged vehicles to South Dakota to sell.

“It opens it up for unscrupulous people to come in and take advantage of the system,” he said.