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SouTH CAROLINA AUTO DEALER LICENSE: STEP-BY-STEP GUIDE
STEPS
DETERMINE WHICH TYPE OF LICENSE YOU NEED:
Motor Vehicle Dealer license: A motor vehicle dealer license, the most commonly issued license, allows you to sell retail or wholesale motor vehicles. Vehicles may be sold to the general public and any other dealer or wholesaler. As a licensed dealer, you are not required to sell a specific number of vehicles to maintain your license. However, you must have a dealer license if you sell or attempt to sell more than five vehicles in a calendar year.
Motor Vehicle Wholesaler license: Licensed motor vehicle wholesalers differ from dealers. Wholesalers are limited to whom they can sell motor vehicles. As a licensed wholesaler, you may only sell vehicles to licensed motor vehicle dealers or other licensed wholesalers. There are no limitations or requirements for the number of vehicles that you sell in a calendar year. However, you must have a wholesaler license if you attempt to sell more than five vehicles in a calendar year.
Motorcycle Dealer license: As a motorcycle dealer, you are licensed to sell retail or wholesale motorcycles to the general public or any other dealer or wholesaler. Like motor vehicle dealers, you must have a motorcycle dealer license if you sell or attempt to sell more than five motorcycles in a calendar year.
Motorcycle Wholesaler license: Licensed motorcycle wholesalers differ from dealers. Wholesalers are limited to whom they can sell motorcycles. As a licensed motorcycle wholesaler, you may only sell motorcycles to licensed motorcycle dealers or other licensed motorcycle wholesalers. There are no limitations or requirements for the number of motorcycles that you sell in a calendar year. However, you must have a motorcycle wholesaler license if you attempt to sell more than five motorcycles in a calendar year.
Recreational Vehicle Dealer license: Individuals who affect or attempt to affect the sale of more than five recreational vehicles (RV) to the retail public in a calendar year is considered a dealer or wholesaler. An RV includes a motorhome, travel trailer, fifth-wheel trailer, or folding camping trailer designed to provide temporary living quarters for recreational, camping, or travel use. The sale of utility and other trailers does not require a dealer's license.
Temporary Recreational Vehicle Dealer license: You must be a licensed SC recreational vehicle (RV) dealer to apply for a temporary RV dealer license. This temporary license allows you to exhibit and sell travel trailers or motor homes at fairs, recreational or sports shows, vacation shows, or other similar events. Dealers may not purchase more than six temporary licenses in one year. This license applies to only one dealer operating in one location and is not transferable to any other dealer or location. The Temporary Recreational Vehicle Dealer License is valid for 10 consecutive days and the fee is $20 per license. You must complete the Application for a Temporary Recreational Vehicle Dealer's License (SCDMV Form 417-C) to receive this license.
TO QUALIFY AS A MOTOR VEHICLE DEALER, YOU MUST MEET THE FOLLOWING CRITERIA:
The below actions CANNOT be completed at a Branch Office; These actions require a new application with supporting documents (see requirements 3 - 10 below) to be MAILED to SCDMV Dealer Licensing and Audit Unit, P.O. Box 1498, Blythewood, SC 29016-0023 or for overnight delivery, to the physical address of 10311 Wilson Boulevard, Blythewood, SC 29016-0023. (Supplemental bond instructions are in parenthesis).
1. ATTEND A PRE-LICENSING COURSE (NON-FRANCHISE MOTOR VEHICLE DEALERS ONLY)
Applicants for a non-franchise automobile dealer license must attend an eight-hour pre-licensing course. An original or a certified true copy of the original certificate of completion of the course must accompany the application.
The pre-licensing course requirement does not apply to:
A non-franchise automobile dealer owned and operated by a franchised automobile dealer
A non-franchise automobile dealer whose primary business is salvage
A non-franchise automobile dealer whose primary business objective and substantial business activity is the rental of motor vehicles
An existing non-franchise automobile dealer moving to a new location
2. OBTAIN A PERMANENT BUSINESS LOCATION & CALL FOR A COURTESY PRE-INSPECTION OF LOCATION
*Motor Vehicle Dealers” must maintain a bona fide place of business consisting of a permanent structure containing at least 96 square feet of floor space, occupied by the applicant and easily accessible to the public. A bona fide place of business does not mean a residence, tent, temporary stand, or other temporary quarters. The selling or exchanging of motor vehicles must be the principal business conducted from the building. IMPORTANT: There are substantial restrictions on licensing a building that contains more than one business or entity. IF YOU ARE CONSIDERING LICENSING A BUILDING THAT IS SHARED BY OTHER BUSINESSES OR ENTITIES, A PRE-INSPECTION IS REQUIRED. Contact the Dealer Licensing and Audit Unit at (803) 896-2611 to obtain information for a dealer agent to schedule a pre-inspection prior to making any commitment on a shared building. Click here to see the related DMV Policy
Building Requirements Permanent enclosed structure or building
Your office area must have at least 96 square feet of floor space. The structure cannot be a residence, tent, temporary stand, or other temporary quarters. The building must also be easily accessible to the public.
Occupancy: The building must be occupied by you, the dealer, the principle business conducted in the building must be the selling or exchanging of vehicles. The public must be able to contact the owner or operator of your facility at all reasonable times. Your records, files and books should also be maintained and housed in this structure.
Sign: Your business location must display a permanent sign with lettering that is at least six inches tall & Your sign must clearly identify your business and be readable from the nearest street. The sign must clearly identify the licensed business.
Lot: As a dealer, you must provide a reasonable area or lot to properly display motor vehicles. (2,000 square feet meets the display area requirement).
3. FILE ARTICLES OF AUTHORIZATION FOR LLC, LLP, INC., ETC.
File Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)
4. OBTAIN PROOF OF LIABILITY INSURANCE
Certificate of Liability/Garage Insurance (if applying for dealer demonstration plates)
If requesting demonstration plates, an applicant must provide proof of liability insurance in the dealership’s name and location (physical address), covering all vehicles in the dealer’s inventory (typically called “Garage Liability Insurance”). Personal liability insurance policies are not accepted.
5. APPLY AND OBTAIN A SC DOR RETAIL LICENSE
All retail dealers (motor vehicle, motorcycle, or recreational vehicle) must include a copy of SCDOR Form ST-1 Retail License for the trade name (dba) and location with each initial application or application that involves an address or name change.
6. APPLY AND OBTAIN THE NATIONAL CRIMINAL REPORT
Apply for and Obtain The National Criminal Report
Provide an S2Verify Instant National Criminal Search document to any Branch Office if a dealer renewing its license—on any individual who owns or controls 10% or more of the business. The report cannot be more than 90 days old and can be obtained online at S2Verify Instant National Criminal Search or on the SCDMV website (under the Dealer Licenses tab >> Quick Links). Please contact (855) 671-1933 with any questions regarding obtaining an S2Verify document.
7. FILL OUT AN AFFIDAVIT OF ELIGIBILITY
Fill out an (SCDMV Form AD-808A) Affidavit of Eligibility for EACH owner owning 10% or more of the business.
*If hold an out of state DL or home address, please submit a front and back copy of your out of state Driver’s License
*If not a U.S. citizen or a legal permanent resident, but am lawfully present in the U.S., please submit a photocopy of your alien registration card or I-94 Number.
8. BACKGROUND SCREENING ON STATE APPROVED SITE S2VERIFY
All dealers (motor vehicle, motorcycles, recreational vehicle, auction, or wholesale) must provide proof that city or county requirements have been met for each initial dealer license application or any application that involves a name or address change. (Examples include: a zoning permit, business license, business registration, or letter from the city or county stating there are no requirements for the trade name (dba) and location of dealership.)
9. OBTAIN YOUR AUTO DEALER SURETY BOND
*The Motor Vehicle Dealer and Wholesaler Surety Bond (SCDMV Form DLA-1B) ensures that every dealer or wholesaler applicant furnishes a surety bond in the amount required by South Carolina law.
*You must submit your original Surety Bond and Power of Attorney with your Application for a Dealer or Wholesaler License (SCDMV Form DLA-1) at the time of your application. 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.
*Your bond must be in effect before the SCDMV will grant you a license. The owner, partner, or corporate officer of the dealership must sign the surety bond. A corporate surety company authorized to do business in SC must secure the bond. You must submit a new surety bond and Power of Attorney to the SCDMV if you change your bonding company. Dealers should always keep a copy of all documents submitted to this agency.
10. SUBMIT YOUR DEALER APPLICATION WITH A HAND DRAWN OR COMPUTER-GENERATED DIAGRAM
Initial applications or applications for re-licensing at a new location must include a diagram on regular letter size paper (8½” x 11”) that indicates:
Structure/layout of the building lot with dimensions detailing the office space
Vehicle display lot with dimensions detailing the surface area of the display area.
Notate location and names of all businesses in the building
Display area of the vehicles
Display area of the office space
ONCE YOU’VE COMPLETED EACH REQUIREMENT AND HAVE THE DOCUMENTS TO ATTACH TO YOUR COMPLETED APPLICATION, MAIL EVERYTHING TO:
South Carolina Department of Motor Vehicles
Dealer Licensing and Audit Unit
Post Office Box 1498
Blythewood, SC 29016-0023
License Fees: $150.00
Dealer Plate Fee: $20.00 per plate
NOTE*** IF YOU PLAN ON (1) CHARGING A DEALER FEE AND/OR OFFERING BANK FINANCING OR BHPH YOU NEED TO FILE ADDITIONAL FORMS WITH SC
Submit Additional Forms for Dealers Charging Dealer Fees and/or Financing to SC Dept of Consumer Affairs
A motor vehicle dealer must file its proposed closing fee and pay the registration fee before January 31st of each year.
If the maximum amount the dealer intends to charge is $225 or less:
Complete and submit the Notice of Closing Fee Form and pay the registration fee
The proposed fee will automatically be considered reasonable
The dealer can begin charging it after posting the Certificate issued by the Department
Notice of Closing Fee Form (PDF) (Revised 01/17)
Notice of Closing Fee Addendum (PDF) (Revised 11/16)
The Consumer Protection Code Revision Act of 1982 requires all creditors who wish to charge an Annual Percentage Rate (APR) in excess of 18% to file a Maximum Rate Schedule (MRS) with the Department. APR may be in excess of 18% requiring a Maximum Rate Schedule to be filed because of but not limited to:(1) financing that is offered at your place of business, (2) all paper work related to the sale is completed in your office at the time the sale takes place and the contract is assigned to another business, and (3) the sale is offered on credit but the credit price differs from the cash price because of a finance charge. A Maximum Rate Schedule must also be posted in the creditor's place of business. The filing fee is $40 per location.
Initial Maximum Rate Schedule Form (PDF)
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Each license is valid for 3 years and should be displayed prominently in your place of business. Each license applies to only one dealer at one business location and is not transferable to any other dealer or location. Each license costs $150.