South Carolina Motor Vehicle Dealer Bond ($30,000)
The South Carolina Dept. of Motor Vehicles require motor vehicle dealers to secure a surety bond for the penal amount of $30,000. These Surety Bonds must go through underwriting so the amount you will pay will be based on the underwriter’s review which does include the credit rating of the applicant Qualified applicants could pay as little as 1% – 3% while less qualified applicants could expect to pay a little more.
The South Carolina auto dealer surety bonds ensure that auto dealers comply with the provisions of Title 56 of the South Carolina Code of laws which pertains motor vehicle dealers and the sale and transfer of motor vehicles. This bond protects any owner of a motor vehicle from a loss due to the principal’s (auto dealers) actions.
The purpose of the Motor Vehicle Dealer Surety Bond (SCDMV Form DLA-1B) is to make sure the every car dealer or wholesaler applicant complies with South Carolina state rules and regulations.
As per the SCDMV, an applicant must submit their original Surety Bond and Power of Attorney with the Application for a Dealer or Wholesaler License (SCDMV Form DLA-1) at the time of the application. The bond provides security of 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.
The surety bond must be in effect before the SCDMV will grant a dealers 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. The applicant must submit a new surety bond and Power of Attorney to the SCDMV if there is a change in bonding companies. Dealers and Wholesalers should always keep a copy of all documents submitted to SCDMV.
The Surety Bond an applicant will require will be based on whether the applicant wants to be a Dealer or Wholesaler in South Carolina. The penal amount will vary depending on the bond required.
If you need a Surety Bond to start your Auto Dealership or if it is time to renew