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Does a South Carolina Motor Vehicle Dealer Have a Surety Bond Requirement?

A South Carolina Motor Vehicle Dealer shakes hands with customers

The South Carolina Department of Motor Vehicles oversees the licensing of Motor Vehicle Dealers in the state. This includes motor vehicle dealers (also known as car dealers or auto dealers), retail dealers, travel trailer dealers, motorcycle dealers, auto auction dealers, wholesale dealers, and wholesale motorcycle dealers.

Applicants must complete the two-page application and pay the applicable fees for licensure and dealer plates. Dealers that are applying for a non-franchise dealer license will need to complete the pre-licensing course.

Complete an Affidavit of Eligibility (form AD-808A) for each owner having a 10% or more share of the business and each owner must be able to pass a criminal background check.

Provide a copy of garage liability insurance (if applying for dealer plates).

Provide a copy of your retail license obtained from the SC Department of Revenue and a local business license. If a business license is not required, obtain a letter from the city or county stating this.

Surety bonds are required for the following dealer licenses:

Retail Dealer =$30,000 surety bond amount
Wholesale Dealer =$30,000 surety bond amount
Recreational Vehicle Dealer =$15,000 surety bond amount (effective November 19, 2017 bond amount increases to $30,000)
Wholesale Auto Auction =$15,000 surety bond amount
Travel Trailer Dealer =$15,000 surety bond amount
Motorcycle Dealer =$15,000 surety bond amount
Wholesale Motorcycle Dealer =$15,000 surety bond amount

A surety bond must be in effect before the Department of Motor Vehicles will issue a license, and the legal name on the surety bond must match exactly the legal name used in the application.

Dealers need to provide a diagram of the dealership including the display area and building. Wholesale dealers need to provide a diagram of the structure and office space where records will be kept.

How Much Will This Bond Cost?

The premium that you pay for a South Carolina Motor Vehicle Dealer Surety Bond will depend on credit, the bond amount needed and experience in the vehicle industry.

Did You Know?

That a DMV agent must inspect the business location to ensure that it meets state requirements.

Have Questions?

Contact our Surety Bond Specialists at:

Phone: 1‑844‑432‑6637
Fax:     404-351-3237
Hours: 8:00-5:00 CST, Monday through Friday

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