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All state guides South Carolina dealer license

How to get a used car dealer license in South Carolina

You apply to the SCDMV Business License Unit on Form DLA-1 for a Motor Vehicle Dealer license. A non-franchise dealer needs an eight-hour pre-licensing course, a $50,000 surety bond that is renewed or continued every 12 months, and a passed SCDMV inspection before the $150 license is issued.

  • Sourced to SCDMV
  • Checked October 2026
  • Free
License
Motor Vehicle Dealer license (retail, non-franchise)
Surety bond
$50,000
State fee
$150
Pre-license course
8 hours
Background check
National Criminal Report, 10%+ owners
License term
36 months, $150 renewal
What the state asks for

South Carolina dealer license requirements

The figures a first-time used car dealer needs before applying to SCDMV. Each row shows how well it is supported.

Surety bond
$50,000Official source

Filed on SCDMV Form DLA-1B with the surety's power of attorney, originals only. You must give SCDMV a new bond or a continuation certificate every 12 months, and the license expires at once if the bond lapses.

State license fee
$150Official source

The fee for the 36-month license. Nothing is due when you submit the application. You pay after you pass inspection. Dealer plates are $20 each.

Pre-license education
8 hoursOfficial source

A non-franchise retail dealer must complete an eight-hour pre-licensing course before a license is issued and mail the original certificate with the application. SCDMV lists three course providers.

Background check
National Criminal Report, 10%+ ownersOfficial source

Each owner of 10% or more submits a National Criminal Report, ordered online and delivered by email, plus an Affidavit of Eligibility (SCDMV Form AD-808A). SCDMV lists a minimum cost of $43.01.

Insurance
Garage liability, only for platesOfficial source

A certificate of garage liability insurance is required only if you want dealer demonstration plates. SCDMV does not publish a minimum coverage amount. A personal liability policy is not accepted.

Business location
96 sq ft office, sign, display lotOfficial source

A permanent enclosed building with at least 96 square feet of floor space, a permanent sign with letters at least six inches high, and a display lot. SCDMV's manual treats 2,000 square feet as the minimum display area.

License term and renewal
36 months, $150 renewalOfficial source

The license expires 36 months from the month of issue. Renewal is online only and costs $150. Each 10% owner needs a National Criminal Report no more than 90 days old, and the bond must be current.

Sales allowed without a license
5 per calendar yearOfficial source

Anyone who sells or tries to sell more than five motor vehicles in one calendar year is treated as a dealer or wholesaler and needs a license.

Processing time
Not publishedConfirm with the agency

SCDMV does not publish a processing time. After it processes your application, an agent contacts you to schedule the inspection. The criminal report alone takes at least 3 to 5 business days.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

South Carolina Department of Motor Vehicles, Business License Unit

License you apply for

Motor Vehicle Dealer license (retail, non-franchise)

Official licensing page

The manual sets a lot size the statute does not

State law only asks for a reasonable area or lot to display vehicles. SCDMV's Dealer and Wholesaler Manual (October 2026) defines that as at least 2,000 square feet, excluding alleys and driveways. Ask for a pre-inspection before you commit to a small lot. SCDMV's web page also says to keep records for five years, while the statute and the manual say four.
Step by step

How to get a South Carolina dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Take the eight-hour pre-licensing course

    If you are a non-franchise retail dealer, complete the eight-hour pre-licensing course from one of the three providers SCDMV lists. At least one shareholder named on the application must complete it. Keep the original certificate, because SCDMV does not accept copies.

    S.C. Code 56-15-410

  2. Choose the location and ask for a pre-inspection

    Find a site with a permanent enclosed office of at least 96 square feet, a display lot and a place for a permanent sign. You can request a courtesy pre-inspection from SCDMV before you apply. You must get one before you commit to a building shared with another business.

    Business License Unit: 803-896-2611

  3. Register the business and get local approval

    File with the Secretary of State if you are an LLC or a corporation. Get an SCDOR Retail License (Form SCDOR-111) and the city or county compliance document, such as a business license or zoning permit, or a letter saying none is required for your trade name and location.

    SCDOR-111 retail license

  4. Order criminal reports and buy the bond

    Each owner of 10% or more orders a National Criminal Report and completes an Affidavit of Eligibility. Buy a $50,000 surety bond on SCDMV Form DLA-1B with the surety's power of attorney. Get garage liability insurance if you want dealer demonstration plates.

    Forms DLA-1B and AD-808A

  5. Mail the application to SCDMV

    Complete Form DLA-1 and mail it to the Business License Unit in Blythewood with a diagram of the building, lot, display area and office. Include the original bond and power of attorney, the original course certificate, a copy of your retail license, the local compliance documents and the background reports. No fee is due at this stage.

    SCDMV Form DLA-1

  6. Pass the SCDMV inspection

    After SCDMV processes the application, an agent contacts you to schedule an inspection of the building, sign, lot and your procedures. If you do not pass, fix the problems and ask to be reinspected. When you pass, you get an approval letter that explains how to buy the license.

    SCDMV Form DLA-8 checklist

  7. Pay for the license and plates

    Pay the $150 license fee for the 36-month license and $20 for each dealer plate. Display the license prominently at your place of business. Put a completed Buyers Guide in the window of every used vehicle you offer for sale.

    $150 license, $20 per plate

Practical advice

Put the bond anniversary on your calendar separately from the license expiration, because the bond comes due every 12 months and the license every 36. Ask your surety to confirm that SCDMV has the continuation on file, not only that you paid the premium. Request the courtesy pre-inspection before you sign a lease, especially for a small lot or a shared building.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

South Carolina dealer location requirements

What the state checks at the business address.

  • A permanent enclosed building or structure with at least 96 square feet of floor space. A permanently installed mobile home can qualify.
  • Not a residence, tent, temporary stand or other temporary quarters.
  • Occupied by you and easy for the public to reach, with vehicle sales as the principal business at that fixed location.
  • A permanent sign with letters at least six inches high that identifies the business and can be read from the nearest major avenue of traffic.
  • A reasonable lot to display vehicles. The SCDMV manual defines that as at least 2,000 square feet, excluding alleys and driveways.
  • Days and hours of operation posted, and your books, records and files kept in the building.
  • A pre-inspection before you commit to a building that is shared with another business.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a South Carolina dealer license

Renewal and ongoing duties

Give SCDMV a new bond or a continuation certificate every 12 months. The license expires immediately if the bond lapses or drops below $50,000. Report any change to your application within 30 days. Renew online before the 36-month license expires, with new criminal reports for 10% owners. Keep transaction records for at least four years.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

South Carolina dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in South Carolina?

Take the eight-hour pre-licensing course, set up a location with a 96 square foot office, a sign and a display lot, and get your SCDOR retail license and local approval. Mail Form DLA-1 to the SCDMV Business License Unit with a $50,000 bond and a National Criminal Report for each 10% owner. Pass the SCDMV inspection, then pay the $150 license fee.

How much is the dealer bond in South Carolina?

$50,000 for a motor vehicle dealer or wholesaler. It is filed on SCDMV Form DLA-1B with the surety's power of attorney. You must provide a new bond or a continuation certificate every 12 months during the license period, and the license expires immediately if the bond expires, is terminated or falls below $50,000.

How much does a South Carolina dealer license cost?

The license fee is $150 for a 36-month license, and dealer plates are $20 each. No fee is due when you submit the application. You also pay for the bond premium, the pre-licensing course and a National Criminal Report for each 10% owner, which SCDMV says costs at least $43.01.

Do I need a pre-licensing course in South Carolina?

Yes, if you are a non-franchise retail dealer. State law requires at least eight hours of pre-licensing education before the license is issued, and the original certificate goes in with your application. Franchise, wholesale, motorcycle, recreational vehicle and wholesale auction dealers are exempt.

Can I get a South Carolina dealer license without a car lot?

Not as a retail dealer. You need a permanent enclosed building with at least 96 square feet of floor space, a permanent sign and a reasonable lot to display vehicles. A residence does not qualify. Wholesalers, who sell only to other dealers and wholesalers, do not need a display lot or a sign.

How many cars can I sell in South Carolina without a dealer license?

Five. Anyone who sells or attempts to sell more than five motor vehicles in one calendar year is considered a dealer or wholesaler and must be licensed. The exemption covers people disposing of vehicles they acquired for their own use in good faith.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with SCDMV or your attorney before you sign a lease or pay a fee.

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