South Carolina Motor Vehicle Dealer and Wholesaler Surety Bonds
South Carolina Motor Vehicle Dealer and Wholesaler Bond Information
Motor vehicle dealers and wholesalers in the state are required to post surety bonds by the South Carolina Department of Motor Vehicles. A surety bond in the amount of $15,000 must be posted by wholesale auto auction, travel trailer and/or motorcycle dealers or wholesalers. A surety bond in the amount of $30,000 bond must be posted by all other dealers and/or wholesalers.
Update to bond amounts!
Effective January 1, 2024, dealers must increase their bonds from $30,000 to $50,000 and motorcycle dealers must increase their bonds from $15,000 to $25,000. If you already have a bond, you will need a bond rider to ammend your bond and increase the bond amount. You will pay a pro-rata amount for the increase based on the amount of time left on your existing bond.
How Much Does a Motor Vehicle Dealer Bond Cost in South Carolina?
What Does a Motor Vehicle Dealer Bond Protect Against?
The surety bond ensures motor vehicle and wholesalers dealers comply with the provisions of Title 56 of the South Carolina Code of Laws relating to the sale and transfer of motor vehicle dealers in the state. Potential violations include by fraud, fraudulent representation or non-compliance with the provisions of Title 56 of the South Carolina Code of Laws. Any party who is harmed by the actions of the bonded principal, its salespeople, or representatives acting on its behalf may file a claim against the bond.
The bond is continuous in nature and does not automatically expire without a written cancelation notice to the Department of Motor Vehicles. In order to effect cancelation, a 30 day written notice is required by the surety company.
Getting Your South Carolina Business License or Registration
The following is an overview of key South Carolina motor vehicle dealer licensing requirements.
- Form DLA-1 Application for a Dealer or Wholesaler License
- Diagram of your location to include building and display area (if applicable)
- Form DLA-1b Motor Vehicle Dealer and Wholesaler Surety Bond with Power of Attorney in the amount of $15,000 or $30,000 (Surety Bonds Direct provides the power of attorney with your bond)
- Current proof of garage liability insurance (if applying for dealer demonstration plates)
- Copy of SC Department of Revenue Retail License (if applicable)
- Form AD-020 Affidavit of Eligibility for each owner owning 10% or more of the business
- SLED Criminal History report for each owner owning 10% or more of the business. Report cannot be more than 90 days old
- Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.