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Dealer License by State
South Carolina dealer license overview
Unofficial summary – verify with SCDMV

South Carolina Motor Vehicle Dealer License Requirements – 2025 Overview

Anyone who sells motor vehicles to the public as a business in South Carolina must obtain a dealer license from the South Carolina Department of Motor Vehicles (SCDMV). This page focuses on independent (non-franchise) dealers, with notes that also apply to other license types.

Important: This is an unofficial summary for convenience only. Always review the latest instructions, forms, and statutes directly from the SCDMV before applying.

1. Who regulates dealers in South Carolina?

South Carolina dealer licenses are issued by the SCDMV. The agency provides separate pages for dealer requirements and dealer license types.

2. Dealer license types in South Carolina

SCDMV issues different dealer license types. For most independent operations, the key categories are:

  • Motor Vehicle Dealer – sells vehicles at retail to the public.
  • Wholesaler – sells only to other licensed dealers.
  • Franchise Dealer – sells new vehicles under a manufacturer franchise agreement.

The application packet and SCDMV site explain which forms apply to each license type and whether pre-licensing education is required based on your business model.

3. Pre-licensing course and background checks

South Carolina requires most non-franchise dealer applicants to complete an SCDMV-approved pre-licensing education course. Industry associations such as the Carolinas Independent Automobile Dealers Association (CIADA) provide these courses.

  • Complete a state-approved pre-licensing course before submitting your SCDMV dealer application.
  • Retain the course completion certificate and include it with your application if required.
  • Be prepared for SCDMV and other agencies to run background checks as part of the review process.

4. Business location and facility standards

You must have an established place of business that meets South Carolina’s minimum standards for a dealership.

  • A permanent business location with an office where you can meet customers and keep records.
  • A display area or lot where vehicles offered for sale are kept.
  • A permanent business sign visible from the roadway with the dealership name.
  • Zoning compliance and any required local approvals from your city or county.
  • Readiness for an SCDMV site inspection as part of the licensing process.

5. Business setup, bond, and insurance

5.1 Entity and tax registration

  • Form your business entity (sole proprietorship, LLC, corporation, partnership, etc.).
  • Register with the South Carolina Department of Revenue for sales and use tax.
  • Obtain a Federal Employer Identification Number (FEIN) if required.

5.2 Surety bond

South Carolina motor vehicle dealers must provide a surety bond as part of the license application. Current guidance for many motor vehicle dealers references a $30,000 dealer bond, but bond amounts and categories can change. Always confirm the exact bond requirement with SCDMV or your bonding company before applying.

5.3 Insurance

  • Garage or blanket liability insurance covering dealer-owned vehicles is required.
  • Minimum limits and proof requirements are specified in SCDMV’s dealer instructions.

6. South Carolina dealer application process

The high-level steps to obtain a South Carolina dealer license typically include:

  1. Determine the correct license type for your business (motor vehicle, wholesale, franchise, etc.).
  2. Complete the required SCDMV-approved pre-licensing course (for non-franchise dealers).
  3. Secure a compliant business location and ensure zoning and local requirements are satisfied.
  4. Form your entity, obtain tax registrations, and prepare your FEIN.
  5. Obtain the required dealer surety bond and garage liability insurance.
  6. Complete all SCDMV dealer license application forms and gather supporting documents.
  7. Submit your application and fees to SCDMV and prepare for the site inspection.

7. After approval: ongoing South Carolina dealer compliance

  • Renew your dealer license, bond, and insurance before they expire.
  • Maintain your place of business, including your sign, lot, and office, in compliant condition.
  • Follow SCDMV rules for temporary tags, title transfers, and record-keeping.
  • Keep copies of all sales and title transactions for the period required by law.