All Retail, Wholesale and Recreational Vehicle Dealers ($50,000) Bond - Statewide in South Carolina
Table of Contents
Brief Summary
South Carolina dealer licenses run 36 months, but the $50,000 bond behind them has to be renewed every year, and the license expires the moment the bond lapses. We write the bond on SCDMV form DLA-1B with the power of attorney SCDMV asks for, so it goes in with your DLA-1 application in one package.
South Carolina Code 56-15-320 requires every applicant for a dealer or wholesaler license to furnish a $50,000 surety bond on a form prescribed by the SCDMV. The SCDMV applies the $50,000 amount to retail dealers, wholesalers and recreational vehicle dealers. The bond protects vehicle owners against fraud or fraudulent representation in the sale or transfer of a motor vehicle.
We can help with all South Carolina bonds!
How to Apply for an All Retail, Wholesale and Recreational Vehicle Dealers ($50,000) Bond:
- Confirm your license type, since retail, wholesale and recreational vehicle dealers post $50,000 and other license types post less.
- Dealership legal name and business location exactly as shown on SCDMV form DLA-1.
- Owner, partner or officer details for the surety's underwriting review.
- Bond executed on SCDMV form DLA-1B and signed by an owner, partner or corporate officer.
- Original bond and power of attorney submitted with the DLA-1 application.
- New bond or continuation certificate filed every year.
Detailed Information About the South Carolina All Retail, Wholesale and Recreational Vehicle Dealers ($50,000) Bond:
The bond renews every year, the license does not
This is the detail dealers miss most. Under S.C. Code 56-15-310 a dealer or wholesaler license expires 36 months from the month of issue and costs $150. Section 56-15-320 separately requires a new bond or a continuation certificate every year. A dealer's license expires immediately if the bond expires, is terminated or drops below $50,000.
Which amount applies to you
The SCDMV dealer license page and form DLA-1B set the bond by license type:
- Motor vehicle dealer (retail): $50,000
- Motor vehicle wholesaler: $50,000
- Recreational vehicle dealer: $50,000
- Motorcycle dealer and motorcycle wholesaler: $25,000
- Motor vehicle wholesale auction: $15,000
This page covers the $50,000 bond for retail, wholesale and recreational vehicle dealers.
What the bond covers
Section 56-15-320 conditions the bond on the licensee complying with the licensing statutes and indemnifying a vehicle owner, or the owner's legal representative, for loss caused by fraud or fraudulent representation in the sale or transfer of a motor vehicle. The surety's aggregate liability is limited to $50,000 on each bond and to the actual loss. The surety can end its liability by giving the SCDMV 30 days written notice.
Filing with the SCDMV
Use the Motor Vehicle Dealer and Wholesaler Surety Bond, SCDMV form DLA-1B. The SCDMV requires the original bond and power of attorney with the Application for a Dealer or Wholesaler License, form DLA-1. An owner, partner or corporate officer must sign the bond, and the surety must be authorized to do business in South Carolina. If you change bonding companies, a new bond and power of attorney go to the SCDMV.
Who counts as a dealer
Under Section 56-15-10, anyone who sells or attempts to sell more than five motor vehicles in a calendar year is considered a dealer or wholesaler. The definition excludes manufacturers and distributors, court appointed receivers, trustees, executors and guardians, public officers performing official duties, and finance companies or insurers selling repossessed or insurance claim vehicles they own.
Eligibility and Requirements for a South Carolina All Retail, Wholesale and Recreational Vehicle Dealers ($50,000) Bond:
- Corporate surety authorized to do business in South Carolina.
- Bond amount of $50,000 for retail dealer, wholesaler and recreational vehicle dealer licenses.
- Bond on the form prescribed by the SCDMV.
- Bond kept continuously in force, since the license expires immediately if it lapses.
- Dealer license fee of $150 for a 36 month license period.
South Carolina All Retail, Wholesale and Recreational Vehicle Dealers ($50,000) Bond FAQs:
No. S.C. Code 56-15-320 requires a new bond or continuation certificate every year, even though the license itself runs 36 months from the month of issue.
Your dealer license expires immediately when the bond expires, is terminated or falls below $50,000. The surety must give the SCDMV 30 days written notice before cancelling.
Yes. The SCDMV lists $50,000 for retail dealers, wholesalers and recreational vehicle dealers. Motorcycle dealers and wholesalers post $25,000 and wholesale auctions post $15,000.
Under S.C. Code 56-15-10, anyone who sells or attempts to sell more than five motor vehicles in a calendar year is considered a dealer or wholesaler.
The original DLA-1B bond and the surety's power of attorney, submitted with your Application for a Dealer or Wholesaler License, form DLA-1.
