How to Get a Dealer License in South Carolina
In South Carolina, dealer licensing runs through the South Carolina Department of Motor Vehicles (SCDMV) — Dealer License & Audit Unit. To get a used car dealer license in South Carolina you'll need a registered business, a compliant location, a $50,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the South Carolina auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the South Carolina Department of Motor Vehicles (SCDMV) — Dealer License & Audit Unit's current pages before you file.
- Surety bond
- $50,000
- License term
- 36-month (3-year) term for licenses issued after 12/31/2023, renewed every 3 years. Wholesale auction licenses remain 1 year. Renewal requires Form DLA-1, proof of garage liability insurance, and a National Criminal Report less than 90 days old.
- Sales threshold
- There is no free sales allowance for a business. The commonly cited 'more than 5 vehicles in a calendar year' figure applies only to the personal-use exception (S.C. Code §56-15-10(h)); dealing for profit requires a license from the first vehicle.
- Pre-licensing
- Required — an 8-hour Dealer Pre-licensing Course (original completion certificate required) for non-franchise retail dealers. Franchised dealers, wholesalers, auctions, RV, and motorcycle dealers are exempt. Approved providers: CIADA and Carolina Dealer Training.
License types in South Carolina
| License type | What it covers |
|---|---|
| Motor Vehicle Dealer License | The standard license — sell retail or wholesale used (and new) vehicles from inventory to the public and to other dealers. |
| Motor Vehicle Wholesaler License | Sell only to other licensed dealers/wholesalers — never to the retail public. |
| Motor Vehicle Wholesale Auction License | Operate an auction facility without owning the vehicles; a 1-year term with a lower fee. |
| Motorcycle Dealer / Wholesaler License | Motorcycle-only equivalents with a lower bond requirement. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| License fee | $150 | Per license, per location; wholesale auction license is $50 |
| Surety bond (face amount) | $50,000 | Retail coverage amount; the annual premium you actually pay is a fraction of this, based on credit |
| 8-hour pre-licensing course | ~$100–$175 | State-mandated but privately run (CIADA / Carolina Dealer Training) — price is a provider range, verify with the provider |
| Background report + garage liability insurance | Varies | National Criminal Background Report for each owner ≥10%; garage liability insurance required only if you want dealer/demo plates |
Step by step
- Complete the 8-hour pre-licensing course (non-franchise retail) and get the original certificate.
- Secure a $50,000 surety bond (Form DLA-1B) with original Power of Attorney and obtain an SC Department of Revenue retail sales-tax license.
- Set up your qualifying premises (building with ≥96 sq ft office, ≥2,000 sq ft lot, 6-inch sign).
- Complete Form DLA-1 with employee list and a lot-and-building diagram; each owner ≥10% files Form AD-808A plus a National Criminal Background Report.
- Mail the full package (no fee at submission) to the SCDMV Business License Unit, P.O. Box 1498, Blythewood, SC 29016.
- Pass the on-site inspection by an SCDMV Compliance Auditor, pay the $150 fee, and display the license.
Premises & temp tags
Location: You need a bona fide established place of business — a permanent enclosed building (a mobile home is acceptable) with at least 96 sq ft of office space, not a residence or temporary stand. A permanent sign with lettering at least 6 inches tall and a display lot of at least 2,000 sq ft are required for dealers (not wholesalers). Records must be kept on-site for 4 years, and you must satisfy local zoning and business-license rules.
Temp tags / plates: SCDMV issues traceable temporary license plates at the point of sale through Electronic Vehicle Registration (EVR): one plate per purchaser, valid 45 days for both in-state and out-of-state buyers (the old 30-day out-of-state temp plate ended Jan 18, 2024). Issuing a second temp plate to the same buyer is a violation.
South Carolina-specific things to know
- The bond is $50,000, not $30,000 — anyone relying on older guides will file the wrong bond and be rejected (change effective 1/1/2024).
- One license per location and non-transferable — multi-lot operators need a separate license AND a separate bond for each location.
- The '5 vehicle' rule is widely misquoted: it is only the personal-use exception, not a free allowance for a business.
- Garage liability insurance is only mandatory if you want dealer/demo plates — a dealer can operate without plates and skip it, but then can't use demo plates.
Official South Carolina resources
South Carolina dealer license FAQ
How much does a dealer license cost in South Carolina?+
License fee: $150; Surety bond (face amount): $50,000; 8-hour pre-licensing course: ~$100–$175; Background report + garage liability insurance: Varies. Plus the $50,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in South Carolina?+
South Carolina requires a $50,000 surety bond. Raised from $30,000 to $50,000 effective January 1, 2024 for retail/wholesale/RV dealers. Tiered by type: $50,000 retail/wholesale/RV, $25,000 motorcycle dealers, $15,000 wholesale auto auction. Filed on SCDMV Form DLA-1B with a signed Power of Attorney; the original (not a copy) is required. Codified in S.C. Code Title 56, Chapter 15.
Do you need a physical lot to get a dealer license in South Carolina?+
You need a bona fide established place of business — a permanent enclosed building (a mobile home is acceptable) with at least 96 sq ft of office space, not a residence or temporary stand. A permanent sign with lettering at least 6 inches tall and a display lot of at least 2,000 sq ft are required for dealers (not wholesalers). Records must be kept on-site for 4 years, and you must satisfy local zoning and business-license rules.
How many cars can you sell in South Carolina without a dealer license?+
There is no free sales allowance for a business. The commonly cited 'more than 5 vehicles in a calendar year' figure applies only to the personal-use exception (S.C. Code §56-15-10(h)); dealing for profit requires a license from the first vehicle.
How long is a South Carolina dealer license valid?+
36-month (3-year) term for licenses issued after 12/31/2023, renewed every 3 years. Wholesale auction licenses remain 1 year. Renewal requires Form DLA-1, proof of garage liability insurance, and a National Criminal Report less than 90 days old.
Is dealer training or an exam required in South Carolina?+
Required — an 8-hour Dealer Pre-licensing Course (original completion certificate required) for non-franchise retail dealers. Franchised dealers, wholesalers, auctions, RV, and motorcycle dealers are exempt. Approved providers: CIADA and Carolina Dealer Training.
How do temporary tags work for South Carolina dealers?+
SCDMV issues traceable temporary license plates at the point of sale through Electronic Vehicle Registration (EVR): one plate per purchaser, valid 45 days for both in-state and out-of-state buyers (the old 30-day out-of-state temp plate ended Jan 18, 2024). Issuing a second temp plate to the same buyer is a violation.
Data verified 2026-07-17. Requirements change — confirm with the South Carolina Department of Motor Vehicles (SCDMV) — Dealer License & Audit Unit before filing.
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