How to get a dealer license in South Carolina

You must get a license from SCDMV before doing business as a dealer or wholesaler in South Carolina (S.C. Code 56-15-310). A dealer is any person who sells or attempts to sell any motor vehicle (S.C. Code 56-15-10(h)). People disposing of vehicles they bought and used for their own use in good faith are excluded, but anyone who sells or attempts to sell more than five motor vehicles in one calendar year is considered a dealer or wholesaler. SCDMV says you must have a dealer license if you sell or attempt to sell more than five vehicles in a calendar year.

• Motor Vehicle Dealer license (retail): Selling new or used motor vehicles to the public and to other dealers or wholesalers. Franchised and non-franchised dealers use this license. Non-franchise applicants must take the 8-hour pre-licensing course; franchise, wholesale, recreational vehicle, motorcycle, and wholesale auction applicants are exempt. $50,000 bond.
• Motor Vehicle Wholesaler license: Selling only to licensed motor vehicle dealers or other licensed wholesalers. No display lot or sign is required, and you sign the Wholesale Dealer Agreement (DE-004A). $50,000 bond.
• Motor Vehicle Wholesale Auction license: Running a motor vehicle auction at your place of business for vehicles that other businesses own, buy, or sell. $15,000 bond.
• Motorcycle Dealer license: Selling motorcycles at retail or wholesale to the public and to other dealers or wholesalers. $25,000 bond.
• Motorcycle Wholesaler license: Selling motorcycles only to licensed motorcycle dealers or wholesalers. $25,000 bond.
• Recreational Vehicle Dealer license: Selling motorhomes, travel trailers, fifth-wheel trailers, and folding camping trailers. It does not allow selling other types of vehicles. $50,000 bond.
• Temporary Recreational Vehicle Dealer license: Licensed South Carolina RV dealers selling at fairs, shows, and similar events for up to 10 days. Form 417-C, $20, no more than six a year.
• Transporter permit: Businesses that move vehicles from a manufacturer to a dealer or distributor, from a railroad terminal to storage before delivery to a dealer, or for further construction of cabs or bodies. Form DLA-3, $50 a year, transporter plates $10 each a year.

Surety bond. File the original bond on Form DLA-1B with the surety's original power of attorney; copies are not accepted. The bond is $50,000 for retail, wholesale, and recreational vehicle dealers, $25,000 for motorcycle and motorcycle wholesale dealers, and $15,000 for wholesale auctions, amounts in effect since January 1, 2024. You must file a new bond or a continuation certificate every 12 months, and a dealer's license expires immediately if the bond lapses or drops below $50,000 (S.C. Code 56-15-320). Each location needs its own license and bond.

Insurance. Garage liability insurance is required only if you want dealer demonstration plates. It must be a commercial (garage) policy in the dealership's name and physical address covering all vehicles in inventory; personal policies are not accepted. Without dealer plates, garage insurance is optional, and if the policy is canceled you must surrender the plates. Plates also normally require 15 sales in the prior 12 months, which SCDMV can waive for a business licensed less than a year.

Place of business. You need a bona fide established place of business in a permanent, enclosed building (a permanently installed mobile home counts) with at least 96 square feet of floor space, occupied by you and easily accessible to the public. It cannot be a residence, tent, temporary stand, or other temporary quarters. Selling or exchanging vehicles must be the main business there, and your records must be kept there (S.C. Code 56-15-330). Retail dealers need a permanent sign with letters at least 6 inches high readable from the nearest major avenue of traffic, posted days and hours, and a reasonable area or lot to display vehicles; SCDMV says 2,000 square feet, not counting alleys and driveways, meets the display requirement. A shared building requires a pre-inspection. You may also use adjacent property or property within sight that shows the same sign. You must show city or county compliance (business license, zoning permit, or a letter saying none is required), send a diagram of the building, office, and display area, and pass an SCDMV inspection before the license is issued.

Background check. Each person who owns or controls 10% or more of the business must submit a National Criminal Report, ordered through the vendor SCDMV links to and no more than 90 days old, plus Form AD-808A, an affidavit used to verify lawful presence. SCDMV says the report takes at least three to five business days and costs at least $43.01. Under S.C. Code 56-15-350, SCDMV may deny a license for title, VIN, or odometer violations, dealer law violations, fraud in vehicle sales, a prior dealer license revocation, and convictions or pleas within the past 10 years for violent crimes, drug crimes other than simple marijuana possession, tax evasion or failure to pay taxes, weapons crimes, identity theft, larceny, embezzlement, false statements or falsified documents, and criminal sexual conduct. Pardoned or expunged crimes do not count.

Pre-license education. Required (8 hours). Approved courses and details.

1. If you will be a non-franchise retail dealer, complete an approved 8-hour pre-licensing course and keep the original certificate to send with your application.
2. Find a permanent building with at least 96 square feet of floor space, room for a sign with 6-inch letters, and a display area (2,000 square feet meets it), and request a courtesy pre-inspection. A pre-inspection is required for a shared building.
3. File your LLC or corporation with the SC Secretary of State, get an SCDOR retail license, and get your city or county business license, zoning permit, or a letter saying none is needed.
4. Order a National Criminal Report and complete Form AD-808A for each person who owns or controls 10% or more of the business.
5. Buy a $50,000 surety bond on Form DLA-1B with the original power of attorney, and get garage liability insurance if you want dealer plates.
6. Complete Form DLA-1 with your employee list, draw a diagram of the building, office, and display area, and mail everything to SCDMV Business License Unit, PO Box 1498, Blythewood, SC 29016-0023. No fee is due with the application.
7. Pass the SCDMV compliance auditor's inspection, then follow the auditor's approval letter to pay the $150 license fee and $20 for each dealer plate.

Official forms:

• Application for a Dealer or Wholesaler License (Rev. 10/2026), DLA-1
• Requirements for Obtaining a Motor Vehicle Dealer or Wholesaler License (DLA-1A)
• Motor Vehicle Dealer and Wholesaler Surety Bond (DLA-1B)
• Affidavit of Eligibility (AD-808A)
• Wholesale Dealer Agreement (DE-004A)
• Certification of Vehicles Sold by a Dealer (DLA-1C)
• Application for a Temporary Recreational Vehicle Dealer's License (417-C)
• Dealer and Wholesaler Manual (October 2026)

Yes, as a wholesaler. Wholesalers, who may sell only to licensed dealers and wholesalers, need no display lot or sign, but they still need a permanent enclosed building of at least 96 square feet where records are kept and a $50,000 bond. Retail dealers must have a display area, and SCDMV says 2,000 square feet meets that requirement.

Dealer-only auctions require a dealer license. South Carolina licenses auction operators separately, with a Motor Vehicle Wholesale Auction license and a $15,000 bond. AuctionACCESS (auctionaccess.com) limits membership to licensed, credentialed vehicle dealers and their authorized representatives.

Licenses expire 36 months from the month of issue (S.C. Code 56-15-310). Renewals are online only through SCDMV Online, where you upload a bond continuation certificate or new bond and, if you have plates, proof of garage liability insurance. Each owner with 10% or more needs a National Criminal Report no more than 90 days old, which is checked during the online renewal. You must also file a new bond or continuation certificate every 12 months, and demonstration plates are renewed each year at $20 per plate. A license expired more than 90 days needs a new application and an inspection.

This is general information, not legal advice. Rules and fees change, so confirm the details with the South Carolina Department of Motor Vehicles (SCDMV), Business License Unit before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in South Carolina.