South Carolina Motor Vehicle Dealer Surety Bond
A South Carolina motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale or transfer of motor vehicles within the State of South Carolina. The South Carolina Department of Motor Vehicles (SCDMV) requires all dealer and wholesaler license applicants to post a surety bond as part of the licensing process. Bond amounts range from $15,000 to $50,000 depending on the license type. Surety One, Inc. offers quick, no-hassle underwriting for South Carolina motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
South Carolina Code of Laws Title 56, Chapter 15 requires all motor vehicle dealer and wholesaler license applicants to furnish a surety bond. The bond must be filed using SCDMV Form DLA-1B (Motor Vehicle Dealer and Wholesaler Surety Bond) along with an original Power of Attorney. The bond must be executed by a corporate surety company authorized to do business in South Carolina.
The bond provides security against loss or damage due to fraud, fraudulent representation, or violation of Title 56 by a licensed dealer, wholesaler, or their employees in relation to the sale or transfer of a motor vehicle. The bond must be in effect before the SCDMV will grant a license.
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | Motor Vehicle Dealer | Sells motor vehicles (new and/or used) to the general public and other dealers |
| $50,000 | Motor Vehicle Wholesaler | Sells motor vehicles exclusively to other licensed dealers or wholesalers |
| $30,000 | Recreational Vehicle Dealer | Sells recreational vehicles (RVs) to the public |
| $25,000 | Motorcycle Dealer | Sells motorcycles to the public (new and/or used) |
| $25,000 | Wholesale Motorcycle Dealer | Sells motorcycles exclusively to other licensed dealers |
| $15,000 | Wholesale Auto Auction | Conducts wholesale motor vehicle auction sales |
| $15,000 | Travel Trailer Dealer | Sells travel trailers to the public |
Important — 2024 Bond Amount Increases: Effective January 1, 2024, the SCDMV increased bond requirements for several license types. Motor vehicle dealer and wholesaler bonds increased to $50,000, and recreational vehicle dealer bonds increased to $30,000. If your bond was issued before this date, your bond amount must be updated at the next renewal or upon any change. Ensure your bond reflects the current required amount.
Who Needs This Bond?
South Carolina law requires any person, firm, corporation, or business entity that sells motor vehicles to be licensed by the SCDMV. Each license applies to only one dealer at one business location and is not transferable to any other dealer or location. Non-franchise dealers applying for the first time must complete a pre-licensing course before applying.
The bond is required for:
- Motor vehicle dealers (retail — new and used)
- Motor vehicle wholesalers
- Motorcycle dealers (new and used)
- Wholesale motorcycle dealers
- Recreational vehicle dealers
- Travel trailer dealers
- Wholesale auto auction dealers
How Much Does the Bond Cost?
The cost of a South Carolina motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by a number of underwriting factors including your personal credit score, business financial strength, industry experience, and claims history. Because each applicant’s profile is unique, premiums vary and are quoted on an individual basis.
Surety One, Inc. offers competitive rates for all credit profiles, including programs for applicants with challenged credit. Surety bond application review and quoting are free of charge. There is no obligation to purchase. Contact us for your personalized quote.
South Carolina Dealer License Requirements
In addition to the surety bond, the SCDMV requires the following for a dealer or wholesaler license:
- Completed Application for a Dealer or Wholesaler License (SCDMV Form DLA-1)
- Original Motor Vehicle Dealer and Wholesaler Surety Bond (Form DLA-1B) with Power of Attorney — copies are not accepted
- Pre-licensing course completion (non-franchise dealer applicants)
- Hand-drawn or computer-generated diagram of the business showing building structure/layout, vehicle display area, and office space
- City/county compliance documents (business license, zoning permit, or letter confirming none is required)
- Articles of Authorization (if LLC, LLP, Inc., etc.)
- Affidavit of Eligibility (SCDMV Form AD-808A) for each owner with 10%+ interest
- National Criminal Report background check for each owner with 10%+ interest
- Certificate of Insurance for garage liability
- Operational business model description
- Applicable licensing fees and dealer plate fees
Note: The legal name on the surety bond must match exactly the legal name on all other documents submitted with the application, including Form DLA-1. The bond must be signed by the owner, partner, or corporate officer.
Filing, Renewal & Cancellation
The original executed surety bond (Form DLA-1B) and Power of Attorney must be mailed to the SCDMV — copies and faxes are not accepted. After submitting the application and all required documents, the SCDMV will conduct a formal inspection of your business location before issuing the license.
Each South Carolina dealer license is valid for 12 months and applies to one dealer at one location. A new bond or proper continuation certificate must be provided to the SCDMV every twelve months during the license period. A dealer’s license expires immediately upon expiration or termination of the dealer’s bond.
The surety may cancel the bond by providing 30 days’ written notice to the SCDMV. Cancellation does not affect any liability incurred or accrued prior to cancellation. If you change your bonding company, a new original bond and Power of Attorney must be submitted to the SCDMV.
Bond Claims
A claim against the South Carolina motor vehicle dealer surety bond may be filed by any owner of a motor vehicle (or their legal representative) who is aggrieved by fraud, fraudulent representation, or violation of Title 56 of the South Carolina Code of Laws by the dealer, their salespersons, or representatives acting within the scope of employment. The surety company will investigate each claim and compensate valid claims up to the full bond amount. The bonded dealer is then required to reimburse the surety for any amounts paid.
South Carolina Department of Motor Vehicles
Dealer License & Audit Unit
Standard Mail: P.O. Box 1498, Blythewood, SC 29016-0023
Overnight: 10311 Wilson Blvd., Building C, Blythewood, SC 29016-0023
Phone: (803) 737-4000
Web: dmv.sc.gov
Surety One, Inc. is the South Carolina surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates and excellent customer service for South Carolina motor vehicle dealer bonds and all other license bond classes. Need help meeting your SCDMV licensing requirements? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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