If you sell five or more vehicles per year in South Carolina, you’ll need to be licensed with the SC Department of Motor Vehicles (SCDMV). This guide will break down the license types, application requirements and expected costs.
Which License Do I Need?
Before applying, you’ll need to decide what type of license best fits your business.
| License Type | Description |
|---|---|
| Motor Vehicle Dealer | Sells vehicles to the public and other dealers/wholesalers |
| Motor Vehicle Wholesaler | Only sells vehicles to licensed dealers and other wholesalers |
| Motor Vehicle Wholesale Auction | Conducts vehicle auctions at your place of business |
| Motorcycle Dealer | Sells retail or wholesale motorcycles |
| Motorcycle Wholesaler | Only sells motorcycles to licensed dealers and other wholesalers |
| Recreational Vehicle Dealer | Sells recreational vehicles (RVs) to the public. This doesn’t include trailers |
| Temporary Recreational Vehicle Dealer | Allows you to sell travel trailers or motor homes at shows and events. You must also have an RV dealer license |
How Do I Get a Motor Vehicle Dealer or Wholesaler License in South Carolina?
To get a South Carolina dealer or wholesaler license, follow these five steps.
Step 1: Establish your business
First, select a business structure and register your company with the state. You’ll also need to get any city or county compliance documents, such as a zoning permit or business license.
Note that if you’re a non-franchise retail dealer, you’ll also need to attend a pre-licensing course.
Step 2: Get a background check
Anyone with 10% or more ownership must submit a National Criminal Report background check. The fee is $49.50 per person, and processing takes 3–5 business days.
Step 3: Purchase a surety bond
Next, get a surety bond in the required amount for your license type.
- Wholesale Auto Auction: $15,000
- Motorcycle-Only Dealers & Motorcycle Wholesalers: $25,000
- All Other Vehicle Dealers and Wholesalers: $50,000
You can apply for a free quote online, with rates starting at less than 1% of the bond amount.
The SCDMV requires you to mail the original bond form with your application.
Step 4: Submit your application
To apply for your license, gather the following supporting materials:
- Application for a dealer or wholesaler license (SCDMV Form DLA-1)
- Wholesale Dealer Agreement (SCDMV Form DE-004A) (if applicable)
- Diagram of the building and lot
- Surety bond (SCDMV Form DLA-1B)
- Pre-licensing course certificate (if applicable)
- Certificate of liability/garage Insurance (if applying for dealer demonstration plates)
- Copy of SCDOR retail license
- City/county compliance document(s)
- Articles of authorization
- Affidavit of eligibility (SCDMV Form AD-808A) for each owner
- National Criminal Report background check for each owner
There’s no fee to apply. Mail all documents to the SCDMV:
Standard Mail
SCDMV Attn: Business License Unit, PO Box 1498, Blythewood, SC 29016-0023
Overnight Mail
SCDMV Attn: Business License Unit, 10311 Wilson Boulevard, Building C, Blythewood, SC 29016-0023
Step 5: Schedule an inspection
Once the SCDMV receives your application, a representative will contact you to set up a site inspection. Your location requirements will depend on whether you’re a dealer or a wholesaler.
How Do I Renew My License?
Most South Carolina vehicle dealer licenses expire every three years. However, wholesale auction licenses expire annually.
Renewals can only be completed online. You’ll need to upload the following materials:
- Updated background check
- Bond continuation certificate
- EVR sales volume verification letter
- List of at least 15 transactions with both vehicle and buyer information
You’ll need to submit additional forms to request dealer plates. If you’re adding more than 20 people to your employee and sales manager lists, contact the Business License Unit.
Do I Need Another Inspection at Renewal?
The SCDMV might require another site inspection if you meet any of the following criteria:
- Your license has expired for more than 90 days
- You changed your business type from a wholesaler to a dealer, or vice versa
- Your name or address has changed
- The dealership’s ownership or location has changed
How Much Does It Cost to Get a Dealer License in SC?
While there’s no application fee, you’ll need to consider these costs when getting a dealer license:
| Fee | Amount |
|---|---|
| Surety Bond | $150+ |
| 3-Year Dealer License | $150 |
| 1-Year Wholesale Auction License | $50 |
| Dealer Plates | $20 + $1 registration fee each |
| Garage Liability Insurance | Varies by location and dealership size |
| 10-Day Temporary RV Dealer License | $20 |
South Carolina Vehicle Dealer and Wholesaler License FAQs
Can I get a dealer license without a lot?
No, all retail dealers must have a physical lot to operate. Only wholesalers don’t need a traditional display area, but you still need to have a dedicated office space where you keep your records.
What are the site requirements?
Your dealership must meet the following criteria:
- Be a permanently enclosed building
- Have at least 96 square feet of floor space
- Hold all records, files and books on-site
- Have a dedicated display lot (retail dealers only)
You cannot work out of your home or a temporary structure. If you’re planning on sharing your space with another business, you’ll need to request a pre-inspection before signing the lease.
Retail dealers also need to meet certain signage requirements:
- Permanent sign
- Lettering at least six inches tall
- Clearly identifies your business
- Readable from the nearest street
Do I need liability insurance?
You only need garage liability insurance if you’re applying for dealer demonstration plates. Your exact coverage amount will vary based on your dealership’s operations and the number of plates you need.
How do I get dealer plates?
Dealer (demonstration) plates cost $21 and expire at the same time as your license. You’ll need to meet the following requirements to be eligible for two plates:
- Valid dealer or wholesaler license
- Garage liability insurance
- Sold 15 vehicles in the past 12 months (unless applying for heavy duty truck dealer plates)
If you’ve been licensed for less than one year, the SCDMV can waive the sale criteria.
You can purchase additional plates if you meet these requirements:
| License Type | Vehicles Beyond 20 |
|---|---|
| Dealers | 1 plate for every 15 additional vehicles |
| Auto Auction | 1 plate for every 50 additional vehicles, up to 75 plates |
| Heavy Duty Truck Dealers | No limit, as long as you only sell heavy-duty trucks |
Note: If you loan a vehicle to a school’s driver education program, the SCDMV will waive the $20 plate fee. However, you’ll need to return the plate when the vehicle isn’t being used for educational purposes.
What if I move my dealership location?
If you change your dealership location, you’ll need to reapply for your license with the SCDMV.
You can typically make any license changes at renewal through the online portal. In some cases, you may also need to pass another inspection.
Do I need to complete a training course?
Only non-franchise retail dealers need to complete a pre-licensing course. This doesn’t apply if your primary business is salvage or rental vehicles.
You must register for the eight-hour class with one of the following approved providers:
- Better Dealer Training
- Carolina Dealer Training
- Carolina Independent Automobile Dealer Association (CIADA)
You can also complete optional title and registration training through the SCDMV’s free webinars or self-paced materials.
Last Updated: July 30, 2026
