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SOUTH CAROLINA
MOTOR VEHICLE DEALER BOND

South Carolina Motor Vehicle Dealer Bond / South Carolina Motor Vehicle Wholesaler Bond

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Getting a South Carolina motor vehicle dealer bond or South Carolina motor vehicle wholesaler bond is a key step to becoming a licensed car dealer in the state. These motor vehicle dealer bonds serve as an extra guarantee that your dealership will follow all rules and regulations that govern motor vehicle dealers in the state of South Carolina.

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Just like all surety bonds, the South Carolina motor vehicle dealer bonds serve as protection for the general public, and not as insurance for your business. In case you don't follow the rules and your obligations under the bond, a claim can be made against you. If proven to be a legitimate claim, the penal sum of the bond is used to compensate the affected parties. The surety covers the costs of claims up front, which you’ll be required to reimburse in full. This means you should avoided having any claims, as they can cause serious harm to your business and finances.

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South Carolina Motor Vehicle Dealer / South Carolina Motor Vehicle Wholesaler License and Renewal

Applying for a Dealer License

You must apply for a dealer license with the SCDMV before beginning business as a dealer or wholesaler. The licensing requirements may differ depending on the type of license you require and whether or not you have been licensed before.
 
To get any type of dealer or wholesaler license, you must complete all required applications and pass an inspection by the SCDMV.

Applying for the First Time 

If you are applying for the first-time, you must submit the following forms depending on the type of license you are requesting. No fees are required to submit your application.

The Application for a Dealer or Wholesaler License (SCDMV Form DLA-1) is the basic application for your dealer or wholesaler license. You must indicate the type of business you intend to operate, the address of your dealership, and provide information regarding your employees on this application. You must include estimates on the number of vehicles you expect to sell during your first year in business.

Mail your completed application to the appropriate address below:

 Standard Mail Overnight Mail

SCDMV
Attn: Business License Unit
PO Box 1498
Blythewood, SC 29016-0023SCDMV
Attn: Business License Unit
10311 Wilson Boulevard, Building C
Blythewood, SC 29016-0023

The below steps (if applicable to your license type) must be completed before submitting your application:

  1. Attend a Pre-licensing Course (non-franchise motor vehicle dealers only) 

  2. Request a courtesy pre-inspection of business location

  3. File Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  4. Apply and obtain an SCDOR Retail License (Form SCDOR-111)

  5. Obtain city/county compliant document(s)
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of business))

  6. Apply for and obtain the national criminal report

  7. Obtain the surety bond and Power of Attorney (for the appropriate amount) 

Once completed the applicable, above steps, please submit all below documents per your license type.

Required documents for a Retail/Dealer License

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  • Pre-Licensing Course Certificate (original certificate must be mailed; copies are not accepted)

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  • Certificate of Liability/Garage Insurance (if applying for dealer demonstration plates)

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  • Copy of SCDOR Retail License

  • City/county compliance document(s)
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of dealership))

  • Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  • Affidavit of Eligibility (SCDMV Form AD-808A)
    You must submit one for each owner owning 10% or more of the business.

  • The National Criminal Report background check
    You must submit one for each owner owning 10% or more of the business.

Required documents for a Wholesale License

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  • City/county compliance document(s)

  • Owner must provide a signed copy of the lease agreement if not a South Carolina resident
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of dealership))

  • Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  • Affidavit of Eligibility (SCDMV Form AD-808A)
    You must submit one for each owner owning 10% or more of the business.

  • The National Criminal Report background check
    You must submit one for each owner owning 10% or more of the business.    

Required documents for a Wholesale Auction License

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  • City/county compliance document(s)
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of dealership))

  • Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  • Affidavit of Eligibility (SCDMV Form AD-808A)
    You must submit one for each owner owning 10% or more of the business.  

  • The National Criminal Report background check
    You must submit one for each owner owning 10% or more of the business.

Required documents for a Motorcycle Dealer License

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  • Certificate of liability/garage insurance(if applying for dealer demonstration plates)

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  • Copy of SCDOR Retail License

  • City/county compliance document(s)
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of dealership))

  • Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  • Affidavit of Eligibility (SCDMV Form AD-808A)
    You must submit one for each owner owning 10% or more of the business.  

  • The National Criminal Report background check
    You must submit one for each owner owning 10% or more of the business.

Required documents for a Motorcycle Wholesale License   

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  • Owner must provide a signed copy of the lease agreement if not a South Carolina resident

  • City/county compliance document(s)
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of dealership))

  • Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  • Affidavit of Eligibility (SCDMV Form AD-808A)
    You must submit one for each owner owning 10% or more of the business.

  • The National Criminal Report background check
    You must submit one for each owner owning 10% or more of the business.

 Required documents for a Recreational Vehicle Dealer License

On July 1, 2018, the Travel Trailer Dealer's license was replaced by the Recreational Vehicle (RV) Dealer's license. Dealers selling RVs will no longer have a Regular Retail or Travel Trailer Dealer's license. Dealers must apply and exhibit one RV license. This license does not allow dealers to sell other types of motor vehicles at their location(s). Each RV license expires on the last day of the month a year after the date it is issued. The license must be prominently displayed at the dealership. If a dealer decides to sell RVs and additional types of vehicles, the dealer must have a license to sells RVs and a license to sell the other type of vehicle.

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  • Certificate of liability/garage insurance (if applying for dealer demonstration plates)

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  • Copy of SCDOR Retail License

  • City/county compliance document(s)
    (i.e. business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of dealership))

  • Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

  • Affidavit of Eligibility (SCDMV Form AD-808A)
    You must submit one for each owner owning 10% or more of the business.

  • The National Criminal Report background check
    You must submit one for each owner owning 10% or more of the business.

If you are requesting a temporary recreational vehicle (RV) license permit to exhibit and sell travel trailers or motor homes at fairs, recreational or sport shows, vacation shows, or other similar events, you must complete the Application for a Temporary Recreational Vehicle Dealer's License (SCDMV Form 417-C).

Dealers Requesting Additional Demonstration Plates

You will use this process when you have not met your sales volume.

  1. A letter of request, signed by the owner, specifying a) the number of dealer demonstration plates being requested and b) why the plates are being requested

  2. Current Certificate of Liability/Garage Insurance

  3. Listing of Sales:  Certification of Vehicle Sold (SCDMV Form DLA-1C) or a similar printout including all the information recorded on this form

 

 Changes to Your Dealership

You must report any change in the information on your application to the SCDMV within 30 days.

You must complete a new application if you move your dealership to a new location, change the name of the business, change ownership, or change your license type or status from a wholesaler to a dealer.

You must notify the SCDMV within ten days in the event you close your business. You must return your dealer or wholesaler license and any plates issued to you.

SC Code of Laws 56-14-30 et seq.

Whether applying for your first auto dealer license in South Carolina, or renewing an existing one, you have to submit a dealer application form, together with all necessary documents that prove you meet the requirements.

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When you renew your license, you’ll have to renew your South Carolina auto dealer bond as well. As your business finances and personal credit score can change, make sure you work on improving those stats, so that you can reduce your surety bond cost over the years.

Request a FREE Bond or Insurance Quote today!

 

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