How to get a used car dealer license in South Carolina

This guide is informational and does not replace official South Carolina requirements. Always verify with the SCDMV Business License Unit before applying.

Step-by-step process

1. 1

   Find a building that passes

   You need a permanent structure with at least 96 square feet of floor space, open to the public, where car sales are the main business. Retail dealers also need a display area (2,000 square feet meets it) and a sign with 6-inch letters. If the building is shared with other businesses, SCDMV requires a pre-inspection. Call the Business License Unit at (803) 896-2611 before you commit to a shared building.

2. 2

   Set up the business and local approvals

   Register your LLC or corporation if you're using one. SCDMV wants the articles with your application. Get an SCDOR retail license for the trade name and address. Then get proof that the city or county is satisfied: a zoning permit, business license, or a letter saying nothing is required.

3. 3

   Take the 8-hour pre-licensing course

   Non-franchise retail dealers must complete an 8-hour pre-licensing course. Send the original certificate (or a certified true copy) with the application. SCDMV lists CIADA, Carolina Dealer Training and Better Dealer Training as course providers. Wholesalers, auctions, motorcycle and RV dealers are exempt.

4. 4

   Buy the $50,000 bond

   Motor vehicle dealers and wholesalers furnish an original $50,000 surety bond on form DLA-1B with its power of attorney. Mail the original. SCDMV doesn't accept copies. Garage liability insurance is only required if you want dealer demonstration plates.

5. 5

   Pick an EVR provider

   Since January 18, 2024, every SC dealer transaction runs through an Electronic Vehicle Registration (EVR) provider, including 45-day temporary tags. Applicants must name an EVR provider, and SCDMV issues the license only after the signed provider contract is submitted.

6. 6

   Mail the DLA-1 packet and pass the inspection

   Mail the DLA-1 application with the bond, course certificate, SCDOR retail license, local approval, AD-808A and criminal report for each 10% owner, and a letter-size diagram of the building, office and display area with dimensions. Send it to SCDMV Business License Unit, P.O. Box 1498, Blythewood, SC 29016-0023. You must pass an SCDMV inspection before the license is issued.

Can you get an SC dealer license without a lot?

Not a retail license. SCDMV's requirements sheet (DLA-1A) says a retail dealer's place of business must have a reasonable area or lot to display vehicles, and 2,000 square feet meets that. You also need the 96-square-foot permanent building and the sign. A residence doesn't qualify.

A wholesale license is the closest thing to no-lot. Wholesalers must meet the same requirements except the sign and display area, the SCDOR retail license and the course. You still need a permanent building of at least 96 square feet, the bond and an inspection. Your diagram shows the office and where you store records instead of a display area.

• Wholesalers who aren't SC residents must provide a signed lease.
• Shared buildings face substantial restrictions and need a pre-inspection.
• Each license covers one dealer at one location and can't be transferred (S.C. Code 56-15-310).
• Off-site sales are prohibited. You may display up to 10 vehicles at a non-selling temporary event lasting no more than 10 days (S.C. Code 56-15-315).

Using your SC dealer license at car auctions

Dealer-only auctions are why a lot of people look into a license. A dealer or wholesaler license lets you buy and sell as a dealer. Each auction sets its own registration rules, so ask what it needs before your first sale. Expect to show your license.

If you only want to buy at auction and resell to other dealers, look at the wholesaler license. It skips the display lot and the course. You can't sell to the public on it.

The license follows the volume. Sell or try to sell more than five vehicles in a calendar year and you're a dealer or wholesaler under S.C. Code 56-15-10, lot or no lot. Selling without a license is a misdemeanor, and each sale counts as a separate offense. A third offense carries a $2,000 to $10,000 fine, up to two years in prison, or both (S.C. Code 56-15-310).

Once you're licensed: your first SC deals

Since January 1, 2024, SC dealers must title and register a sold vehicle within 45 days. SCDMV recommends mailing the paperwork within 35. Your core form is the Form 400 title application. Every titled sale also needs the federal odometer disclosure.

DealerVLO fills the official SC Form 400 from the deal you've already entered, so you're not retyping the buyer, VIN and mileage. Walkthroughs: how to fill out SC Form 400 and the odometer disclosure statement.

• Dealer plates are $20 each. You generally need 15 sales in the prior 12 months to get two plates. SCDMV may waive that for a company licensed less than a year.
• Report changes to your application within 30 days. A move, name change or ownership change means a new application.

The South Carolina auto dealer bond: $50,000

South Carolina requires every used-vehicle dealer to post a $50,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.

You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-7% (industry estimate) of the bond's face value. Your actual premium depends on personal credit and business history.

S.C. Code 56-15-320 sets the dealer bond at $50,000, and it must be renewed or continued every 12 months. Act 51 of 2023 raised it from $30,000 on January 1, 2024. Wholesalers post the same $50,000. Wholesale auctions post $15,000 and motorcycle dealers $25,000. File the original bond (DLA-1B) and its power of attorney. Moving locations needs a new bond or a bond rider. The 1–7% premium range is our estimate, not a state figure.

Common questions