If you want to be licensed to sell vehicles in South Carolina, you must post an auto dealer bond with the South Carolina Department of Motor Vehicles. This surety bond helps protect buyers and the state by ensuring dealers follow South Carolina law, disclose key information in each transaction, and properly remit all taxes and fees they collect. Maintaining an active bond is required to keep your dealer license in good standing.
South Carolina Auto Dealer Bond at a Glance
- Purpose: Protect consumers and the state from financial loss if a dealer breaks South Carolina law, misrepresents a sale, or fails to forward owed taxes and registration fees.
- Who needs it: All licensed motor vehicle dealers, including new and used dealers, wholesalers and wholesale auction dealers, motorcycle dealers and wholesalers, and recreational and temporary RV dealers.
- Regulating authority: South Carolina Department of Motor Vehicles — Business License Unit (formerly the Dealer License Unit)
- Bond amount: $15,000–$50,000, depending on license type.
- Bond term: Annual. Even though most dealer licenses now run 36 months, the bond itself must be renewed or continued every 12 months.
- Premium rate: Often 1%–3% for well-qualified applicants; exact pricing depends on credit, financial strength, and experience in vehicle sales.
The South Carolina auto dealer bond applies to several license types:
- Motor vehicle dealer – Sells more than five vehicles a year to consumers, dealers, or distributors.
- Motor vehicle wholesaler – Sells more than five vehicles a year to licensed dealers or distributors only.
- Motor vehicle wholesale auction – Runs an auction facility where others buy and sell vehicles on the premises.
- Motorcycle dealer – Sells more than five motorcycles a year to the public or other dealers.
- Motorcycle wholesaler – Sells more than five motorcycles a year to licensed dealers or distributors only.
- Recreational vehicle (RV) dealer – Sells more than five RVs a year (motorhomes, travel trailers, fifth wheels, folding campers, etc.).
- Temporary RV dealer – Licensed RV dealer selling motorhomes or travel trailers at temporary events such as shows or fairs.
Bryant Surety Bonds is authorized under license #1910749760 to provide South Carolina auto dealer bonds. By partnering with leading sureties, we offer highly competitive rates, so you can start your online application and receive a free, no-obligation quote.
How Much Does a South Carolina Auto Dealer Bond Cost?
In South Carolina, bond amounts are set by the SCDMV and depend on your license type:
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| Motor vehicle dealer | $50,000 | Starts at $500 |
| Motor vehicle wholesaler | $50,000 | Starts at $500 |
| Motorcycle dealer | $25,000 | Starts at $250 |
| Motorcycle wholesaler | $25,000 | Starts at $250 |
| Motor vehicle wholesale auction | $15,000 | Starts at $150 |
| Recreational Vehicle Dealer | $50,000 | Starts at $500 |
When you purchase a surety bond, you don’t pay the full bond amount - you pay a bond premium, which is just a small percentage of it. That percentage is based on how risky you appear to the surety. To determine this, underwriters look at your overall financial health, your business’s assets and debts, your credit history, and your experience running an auto dealership.
Dealers with strong finances and a solid record of managing credit typically qualify for the lowest rates, often in the 1%–3% range. Those with average or mixed credit usually see premiums around 3%–5%, which are still affordable for most businesses.
If you’ve had credit challenges or other financial setbacks, your premium may be higher, sometimes up to 10% of the bond amount. In these cases, Bryant Surety Bonds can help through our Bad Credit Surety Bond Program, which works with reputable surety underwriters to find realistic premium options so you can still secure the bond you need to operate legally.
Whether your credit is strong or still in progress, our Surety Bond Cost Calculator gives you a direct look at potential premiums. Enter your bond type, credit score, state, and bond amount to find out your estimated rate immediately.
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How to Get a South Carolina Auto Dealer Bond
The path to getting your bond is simple and follows just three easy steps:
- Give us the basics through a short online form - your name, contact details, and the bond amount you plan to secure.
- Get a quote from us. You will receive a no-obligation estimate, typically on the very same business day.
- Make your bond official. Once you approve your quote and the payment clears, we will send you your bond ready for filing.
How to Get a South Carolina Motor Vehicle Dealer License
To complete your application with the SCDMV, you’ll typically need:
- Surety bond in the required amount with Power of Attorney
- Articles of organization/incorporation (for LLC, LLP, corporation, etc.)
- City/county compliance: business license, zoning approval, or a letter stating they’re not required
- Affidavit of Eligibility for each owner with 10%+ ownership
- National Criminal Report background check for each owner with 10%+ ownership
- Garage liability insurance (if requesting dealer demonstration plates)
- Lot/office diagram showing the building, office, and vehicle display area
- Copy of SCDOR retail license
- Original Pre-Licensing Course Certificate (motor vehicle dealers only)
- $150 first-time application fee (dealer plate fee of $20 each is separate and is not required at time of application submission)
- Facility inspection — retail dealers must request and pass a courtesy pre-inspection of the business location once the SCDMV has processed the application
Note: as of January 1, 2024, most dealer licenses are issued for a three-year term (wholesale auction dealer licenses are still issued annually).
For wholesale or motorcycle wholesale licenses, you must also submit a Wholesale Dealer Agreement (Form DE-004A), an operational business model, and a signed lease for any non-resident owner.
Applications and supporting documents must be mailed to:
Overnight mail:
SCDMV Attn: Business License Unit
10311 Wilson Boulevard, Building C
Blythewood, SC 29016-0023
Standard mail:
SCDMV Attn: Business License Unit
PO Box 1498
Blythewood, SC 29016-0023
For more information about getting your dealer license, visit our dedicated South Carolina Dealer License Guide.
South Carolina Auto Dealer Bond Renewal
In South Carolina, most dealer licenses are now valid for 36 months and renew for $150. Wholesale auction dealer licenses must still be renewed every year under separate SCDMV rules.
When renewing, dealers must keep their surety bond active and submit:
- National Criminal Report for each owner with 10%+ ownership
- Garage liability insurance or certificate of liability (if using dealer demo plates)
- Record of Out-of-State or Dealer-to-Dealer sales, when applicable, provided as:
- A typed list of at least 15 sales (VIN, make, year, buyer name/address, sale date), or
- EVR sales volume verification letter, or
- Certification of vehicles sold by the dealer
As of October 15, 2024, the SCDMV’s Electronic Dealer Renewal Project (EDRP) made online renewal mandatory for SC dealer licenses. Renewals can no longer be completed by mail or in person at a branch office.
The bond is renewed separately from the license. Even though the dealer license now runs for 36 months, the SCDMV bond form (DLA-1B) requires a new bond or continuation certificate every 12 months during the license period. If the bond lapses, the dealer license expires immediately. The surety may cancel only by giving 30 days’ written notice to the SCDMV.
FAQs
Does each dealership location need a separate bond?
Yes. If you operate from more than one location, you must obtain a separate license and bond for each dealership location.
How long does it take to get a South Carolina auto dealer bond?
Usually within a single business day. Most applicants are quoted on the day they apply, and once you accept the terms and complete payment, your South Carolina dealer bond is typically issued within 24 hours, so you can file it with the SCDMV Business License Unit as part of your initial application or your online EDRP renewal.
Does obtaining an auto dealer bond quote affect my credit score?
No. Sureties evaluate your application using a soft credit inquiry, which has no impact on your credit score and does not appear on the credit report lenders pull when you finance inventory or apply for other business credit.
Can I get a South Carolina auto dealer bond if I have bad credit or past financial issues?
Yes, in most cases. Bryant Surety Bonds’ Bad Credit Surety Bond Program is built for applicants with low credit scores, prior bankruptcies, tax liens, or other financial setbacks that traditional sureties tend to decline. Premiums in this program typically run 5%–10% of the bond amount rather than the standard 1%–3%, but most higher-risk applicants are still able to secure the bond they need to obtain or renew an SC dealer license.
Can I transfer my South Carolina auto dealer bond to a new business owner?
Not directly — the right paperwork depends on the type of change. For a true ownership change (a sale, merger, or restructuring into a different legal entity), the bond cannot be reassigned. The new owner must apply for a new SCDMV dealer license and file a fresh surety bond in the new entity's name. For a simpler change, such as a business name update, an address change, or a corporate restructuring where the underlying legal entity stays the same, the surety can usually issue a bond rider that amends the existing bond instead of replacing it. Riders are faster and less expensive than a new bond, but only work when the principal on the bond hasn't actually changed. Contact us first so we can confirm whether a rider or a new bond is required, and coordinate the timing with the SCDMV Business License Unit so there's no coverage gap.
Does my South Carolina auto dealer bond cover all the vehicle types I sell?
Generally, yes — the same $30,000 bond covers motor vehicle dealer activity across passenger cars, trucks, and motorcycles sold under a standard SCDMV dealer license. However, certain specialized dealer categories operate under their own licensing frameworks with their own bond requirements: wholesale-only dealers, dealers who sell only manufactured homes or RVs, and salvage pool operators may face different requirements depending on the specific license type they hold. If your inventory mix spans multiple categories, confirm with the SCDMV Business License Unit before assuming a single bond covers all of your operations.
Can my South Carolina auto dealer bond be canceled mid-term, and what happens to my license if it is?
Yes. Either you or your surety can initiate cancellation, but the surety must provide advance written notice to the SCDMV — typically 30 days — before cancellation takes effect. During that notice period, your license remains active, and you have time to file a replacement bond. If a replacement bond is not on file with the SCDMV before the cancellation effective date, your dealer license will be suspended or revoked, and you'll be unable to legally sell vehicles or use dealer plates until coverage is restored. The bond also remains liable for claims tied to violations that occurred during the period it was in force, even after cancellation.
