The State of South Carolina requires individuals who sell, or attempt to sell, more than five vehicles in a calendar year be licensed as a motor vehicle dealer. An important step in obtaining a dealer license is submitting and maintaining a surety bond with the South Carolina Department of Motor Vehicles (SCDMV). The bond provides security or protection against loss or damage due to fraud or fraudulent representation in relation to a sale or transfer of a motor vehicle by a licensed dealer, wholesaler or their employees. It also ensures that the principal (vehicle dealer) complies with all of the provisions of Title 56 of the South Carolina Code relating to motor vehicle dealers and the sale and transfer of motor vehicles.
The surety bond amount will vary and is based on the type of license needed:
- All dealers, wholesalers or travel trailer dealers
- Wholesale Auto Auction, Motorcycle Dealer and Motor Cycle Wholesalers
South Carolina Motor Vehicle Dealer bonds have a continuous term and remain in effect until the surety cancels the bond.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.