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

Act 51 of 2023 (S.549, Section 20) was a comprehensive reform of South Carolina dealer licensing effective January 1, 2024. It increased the bond from $30,000 to $50,000 for all dealers and wholesalers (motorcycle-only dealers went from $15,000 to $25,000). It also changed dealer licenses from annual ($50/year) to 3-year terms ($150 total). Dealers whose bonds were not updated by January 1, 2024 had their licenses expire. The SCDMV now monitors bond compliance electronically via the ALIR system.

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. Note that even though the license is now 3 years, the bond premium is still paid annually. The SCDMV monitors bond status electronically through the ALIR system.

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 and motorcycle wholesalers 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 -- bond premiums are still paid annually. The SCDMV monitors bond status electronically through the ALIR system and will revoke your license if the bond lapses.

ALIR stands for Automobile Liability Insurance Reporting. The SCDMV uses this electronic system to monitor both insurance and bond compliance in real time. If your bond lapses or is cancelled, the ALIR system automatically flags your dealer license. This makes it critical to renew your bond before the expiration date -- there is no grace period when monitoring is electronic.

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.

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.

Licensed South Carolina motor vehicle dealers. It is required by the South Carolina Department of Motor Vehicles (Act 51 of 2023), as part of the dealer license. The bond amount is $50,000 (raised from $30,000 effective January 2024).

Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.

We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.

Up to five. South Carolina requires a motor vehicle dealer license once you sell or attempt to sell more than five vehicles in a calendar year; the same five-vehicle line applies to motorcycles under a motorcycle dealer license. Count by calendar year; the sixth sale is where the license is required. The rule reads the same way for motorcycles. If Spanish is easier for you, Eric speaks it and can walk through this with you.

Source: South Carolina DMV: Dealer licenses

A licensed wholesaler is not required to have a display lot or sign, because wholesalers cannot sell to individuals; a South Carolina motor vehicle dealer license, by contrast, requires a display lot and a diagram of the building and lot. If you need to sell to the public, South Carolina expects a display lot; the wholesaler route avoids the lot but limits you to dealer-to-dealer and wholesale sales. Either way, all dealers must house their records at the licensed location.

Sources: South Carolina DMV: Dealer requirements · South Carolina DMV: Dealer licenses