Getting a used car dealer license in South Carolina
In South Carolina, used-car dealers are licensed by South Carolina DMV Dealer Licensing and Audit.
Before your first retail sale you’ll need a $50,000 surety bond, a pre-licensing course and a business location that meets the state’s rules. The state also inspects the location.
This page gathers what a new independent lot needs, each fact linked to the official source it came from.
At a glance
- License
- Retail motor vehicle dealer, non-franchise dmv.sc.gov (source, opens in a new tab)
- Issued by
- South Carolina DMV Dealer Licensing and Audit dmv.sc.gov (source, opens in a new tab)
- Surety bond
- $50,000 with original power of attorney. dmv.sc.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
- Pre-licensing course
- Eight-hour course: Carolina Dealer Training, CIADA or Better Dealer Training. Original certificate required. dmv.sc.gov (source, opens in a new tab)
- Official fees
- $150 three-year license. dmv.sc.gov (source, opens in a new tab)
- Renewal
- Three-year renewal, $150, since January2024. dmv.sc.gov (source, opens in a new tab)
- Site inspection
- Yes: SCDMV Audit and Compliance Unit. dmv.sc.gov (source, opens in a new tab)
Step by step
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Make sure you need a retail dealer license
South Carolina's DMV Dealer Licensing and Audit section issues the non-franchise retail motor vehicle dealer license. A wholesale license limits you to selling to dealers, and wholesale auction and motorcycle licenses have different bonds and terms. dmv.sc.gov › dealer-licenses (source, opens in a new tab)
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Take the eight-hour course
Complete the eight-hour course with Carolina Dealer Training, CIADA or Better Dealer Training. Keep the original certificate: SCDMV wants originals, not photocopies. dmv.sc.gov › non-franchise-dealers (source, opens in a new tab) dmv.sc.gov › dealer-licenses (source, opens in a new tab)
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Set up the business and local approvals
Get your SCDOR retail license and entity authorization, and a local compliance document, or a letter saying none is required. A residence or temporary quarters doesn't qualify. dmv.sc.gov › dealer-licenses (source, opens in a new tab) dmv.sc.gov › dealers-licensing-and-transaction-laws-are-changing (source, opens in a new tab)
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Set up the site
You need at least 2,000 sq ft of display space, not counting driveways or alleys, and a permanent building open to the public of at least 96 sq ft, with your days and hours posted and business records kept inside. Add a permanent sign readable from the road with 6-inch letters, and draw a diagram of the site for the application. dmv.sc.gov › Dealer and Wholesaler Manual.pdf (source, opens in a new tab) dmv.sc.gov › dealer-licenses (source, opens in a new tab)
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Background checks and the bond
Every owner with 10% or more submits an eligibility affidavit (AD808A) and a national criminal report. The $50,000 bond (DLA1B) needs an original power of attorney. If you want demonstration plates, add garage liability insurance. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. dmv.sc.gov › dealer-licenses (source, opens in a new tab)
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Apply
File form DLA1 with the bond, affidavits, diagram, original course certificate and supporting documents. The license is $150 for three years. dmv.sc.gov › dealer-licenses (source, opens in a new tab) dmv.sc.gov › dealers-licensing-and-transaction-laws-are-changing (source, opens in a new tab)
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Pass the inspection
SCDMV's Audit and Compliance Unit inspects the site before approval. dmv.sc.gov › Dealer and Wholesaler Manual.pdf (source, opens in a new tab) dmv.sc.gov › dealer-licenses (source, opens in a new tab)
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Keep it current
Licenses renew every three years for $150. dmv.sc.gov › dealers-licensing-and-transaction-laws-are-changing (source, opens in a new tab)
The location
- Display lot
- Minimum 2,000 sq ft excluding driveways/alleys. dmv.sc.gov (source, opens in a new tab)
- Office
- Permanent, public-accessible building at least 96 sq ft; posted days/hours and business records inside. dmv.sc.gov (source, opens in a new tab)
- Sign
- Permanent road-legible sign with 6-inch letters. dmv.sc.gov (source, opens in a new tab)
- Zoning and home-based lots
- Local compliance document or written no-document-required letter; no residence or temporary quarters. dmv.sc.gov (source, opens in a new tab)
Before you apply
SCDOR Retail License; entity authorization; AD808A and national criminal report for each owner with at least 10%; garage liability if demonstration plates requested. dmv.sc.gov (source, opens in a new tab)
Forms
DLA1 application; DLA1B bond; AD808A eligibility affidavit; diagram and original course certificate. Direct downloads on primary page. dmv.sc.gov (source, opens in a new tab)
Get the current versions from dmv.sc.gov; we don’t host copies.
Not the license you’re after?
Wholesale restricts customers to dealers; wholesale auction and motorcycle licenses have different bonds/terms. dmv.sc.gov (source, opens in a new tab)
What trips people up
Our read of the requirements above, not official guidance or statistics.
The hardest part: satisfying both site standards and original-document submission.
Easy mistakes:
- Photocopied bond/POA/course certificate or missing 10%-owner background documents.
Questions
How much does a South Carolina dealer license cost?
$150 for a three-year license. The bond premium, the course and the site cost more. dmv.sc.gov › dealers-licensing-and-transaction-laws-are-changing (source, opens in a new tab) dmv.sc.gov › dealer-licenses (source, opens in a new tab)
Can I run a dealership from home in South Carolina?
No. A residence or temporary quarters doesn't qualify. dmv.sc.gov › dealer-licenses (source, opens in a new tab) dmv.sc.gov › dealers-licensing-and-transaction-laws-are-changing (source, opens in a new tab)
How big does the lot have to be?
At least 2,000 sq ft, not counting driveways or alleys. dmv.sc.gov › Dealer and Wholesaler Manual.pdf (source, opens in a new tab)
Sources
- dmv.sc.gov › dealer-licenses
- dmv.sc.gov › non-franchise-dealers
- dmv.sc.gov › Dealer and Wholesaler Manual.pdf
- dmv.sc.gov › dealers-licensing-and-transaction-laws-are-changing
Related
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Not affiliated with the South Carolina DMV. Not legal advice. Requirements change; always confirm with the state.