Get Your Dealer License in South Carolina

Step 1: Attend Pre-Licensing Course

Applying for an independent motor vehicle dealer license requires an approved 8-hour pre-licensing course. Here are two authorized providers for the course: CIADA ($375) and CDT ($325).

Step 2: Location -  (typically need 1st and last month to secure)

For your permanent business location to be approved for your license, you must meet the following requirements:

• A permanent enclosed structure
• An office of at least 96 square feet
• A permanent sign with letters at least six inches in height (not required for wholesalers)
• Enough space to display a reasonable amount of motor vehicles
• Hand drawn or computer-generated diagram (indicating the: 1) structure/layout of the building and lot, 2) display area of the vehicles, and 3) office space)

To find your location, the following resources may be helpful: commercial real estate section on Craigslist, real estate agents experienced in commercial property & zoning and other auto dealers. Here is how you find out where other dealers have leased space.

• Step 1: Search cars for sale on Craigslist by dealers.
• Step 2: Take the phone number from the Craigslist listing and search it on the internet.
• Step 3: Take the address of the dealer and search to find the office complex or warehouse that allows auto dealers.
• Step 4: Last step is to contact the landlord for any vacancies. 

Step 3: Bond - $30,000

I describe a Bond as an insurance policy for your customers. You only pay a percentage of the Bond amount. That percentage is based on your credit score with the most favorable rates for those with 680 score or higher in my experience. 

All dealers must purchase a bond to be licensed. The bond must be in effect at the time of application.

Step 4: Proof of Liability Insurance

To purchase dealer plates from the South Carolina DMV, you are required to obtain and maintain garage liability insurance. Proof of insurance must be included with your application.

Step 5: Request a Pre-Inspection of Business Location

For Retail Dealers only, contact our Dealer Licensing and Audit Unit at 803-896-2611 to receive your Dealer Agent's contact

Step 6: Incorporation & EIN - $135

File Articles of Authorization (if applicable: LLC, LLP, Inc., etc.)

A CL-1 Form must be included with the Articles of Incorporation. You must submit a total payment of $135 which includes the $25 fee for the CL-1 Form and $110 for the Articles of Incorporation.

To apply for your Employer Identification Number (EIN), visit the IRS website. It's FREE to apply.

You may need these numbers: NAICS Code for Used Car Dealers 441120 and SIC Code 5521.

Step 7: Obtain a Retail License

Apply and Obtain a SC DOR Retail License (Form SCDOR-111)

Step 8: Obtain City/County Compliance Document

Business license/zoning permit/business registration, etc. or a letter from city/county stating a compliance document is not required for the trade name (DBA and location of business)

Step 9: Obtain a Criminal History Report

Apply for and Obtain The National Criminal Report

Step 10: Submit Application

If you are applying for the first-time, you must submit the following forms depending on the type of license you are requesting. No fees are required to submit your application.

The Application for a Dealer or Wholesaler License (SCDMV Form DLA-1) is the basic application for your dealer or wholesaler license. You must indicate the type of business you intend to operate, the address of your dealership, and provide information regarding your employees on this application. You must include estimates on the number of vehicles you expect to sell during your first year in business.

Mail your completed application to the appropriate address below:

Standard Mail

SCDMV
Attn: Dealer Licensing and Audit Unit
PO Box 1498
Blythewood, SC 29016-0023

Overnight Mail:

SCDMV
Attn: Dealer Licensing and Audit Unit
10311 Wilson Boulevard, Building C
Blythewood, SC 29016-0023

Step 11: Get a Mentor!

The learning curve is 2 years. Take the shortcut and be profitable faster.

You can have knowledge and experience at your side to give you that 20/20 hindsight vision. Go to the Auto Dealer Business School to learn how you can level up with a mentor.

NOTE: If any links give you trouble, report them to me...lol.. Email me at [email protected]