South Carolina Auto Dealer Bond$50,000 — Updated Under Act 51

South Carolina Act 51 of 2023 (S.549, Section 20) increased the bond requirement from $30,000 to $50,000 for all motor vehicle dealers and wholesalers, effective January 1, 2024. Motorcycle-only dealers saw their bond increase from $15,000 to $25,000. The increase was part of broader reforms to dealer licensing, which also changed licenses from annual ($50/year) to 3-year terms ($150 total). Dealers whose bonds were not increased by January 1, 2024 had their licenses expire.

South Carolina auto dealer bonds ($50,000) cost $500-$5,000 annually depending on credit. Excellent credit (750+) typically qualifies for $500-$1,000 per year (1-2%). Good credit (680-749) runs $1,000-$2,500 (2-5%). Fair or challenged credit may cost $2,500-$5,000. The SCDMV now monitors bond amounts electronically through the ALIR (Automobile Liability Insurance Reporting) system, so your bond must stay active at all times.

You need Form DLA-1 (Application for Dealer or Wholesaler License), Form DLA-1B (Motor Vehicle Dealer and Wholesaler Surety Bond), Form DLA-1C (Certification of Vehicles Sold), and Form AD-808A (Affidavit of Eligibility for each owner with 10%+ stake). Each owner also needs a SC Dealer Licensing Background Screen National Criminal Report at $43.01 per person. As of October 2024, renewals are processed online only through SCDMV.

Under Act 51, both retail dealers and wholesaler dealers now require the same $50,000 surety bond on Form DLA-1B. Previously, wholesalers had a lower bond amount. Motorcycle-only dealers need a $25,000 bond. The bond must be signed by the owner, partner, or corporate officer and secured by a corporate surety company authorized to do business in South Carolina.

Since January 1, 2024, SC dealer licenses are valid for 36 months (3 years) from the month of issue, replacing the previous annual renewal cycle. The license fee is $150 for the 3-year term. However, your surety bond must remain active for the entire license period. The SCDMV monitors bond status electronically through the ALIR system and will revoke your license if the bond lapses.

Yes. We work with multiple surety carriers that specialize in higher-risk applicants for South Carolina dealer bonds. Your bond must meet the $50,000 requirement on Form DLA-1B regardless of credit. Even with credit scores below 600, we can often secure approval. Rates will be higher, but we find the most competitive option available for your specific situation.

Under South Carolina law, the bond provides security against loss or damage due to fraud or fraudulent representation in connection with the sale or transfer of a motor vehicle. Any person who suffers a loss can file a claim against your $50,000 bond. The surety investigates and, if the claim is valid, pays up to the bond amount. You must then reimburse the surety for all amounts paid plus legal costs.

As of October 2024, SCDMV processes dealer license renewals exclusively online. You'll need an active $50,000 surety bond on file (monitored electronically via ALIR), current garage liability insurance, and the $150 renewal fee. Ensure your bond is renewed before your license expiration to avoid any gap in licensing. We send reminders 60 days before your bond renewal date.