How to Renew Dealer License in South Carolina | Dealer License Renewal

ACV facts & figures

No items found.

Being a South Carolina auto dealer involves acquiring a dealer license and renewing it periodically to remain compliant with state regulations. Providing the state with specific documentation and paying the required fees ensures your business is operating legally. Even if you’ve been in the business for years, the renewal process can seem complicated. This guide is designed to help dealers throughout South Carolina maintain their licenses and keep their businesses up and running.

Why Do I Need to Renew My Dealer License?

As of January 1, 2024, the South Carolina Department of Motor Vehicles (SCDMV) changed the renewal rules¹. Licenses now need to be renewed every three years instead of annually. If you’re renewing your license in 2025, you won’t have to go through the process again until 2028. This also means the fee is now $150 rather than $50 to account for the longer licensing period.

However, there is an important exemption: Wholesale auction dealer licenses still need to be renewed yearly, but they aren’t on the hook for the increased surety bond amount or the licensing fees.

While the three-year period has benefits, it also makes renewing much easier to forget. Operating without a dealership license in South Carolina comes with extensive penalties². They include:

A fine between $50 and $200 or up to 30 days in jail for the first offense
A fine between $200 and $1,000 or up to 6 months in jail, or both for the second offense
A fine between $1,000 and $10,000 or up to 2 years in jail, or both for subsequent offenses

What Are the Steps to Renewing My Dealership License In South Carolina?

The renewal process for all types of dealers, including used car dealers, new car dealers, salvage dealers, auction dealers, and wholesalers, has changed significantly in the last 12 months. For example, as of January 1, 2024, every dealer needed to increase the surety bond amount from $30,000 to $50,000 for each licensed dealership; in turn, motorcycle dealers increased their bond amount from $15,000 to $25,000¹. As previously mentioned, wholesale auction dealers are exempt from the surety bond changes.

However, the biggest change occurred on October 15, 2024. As of this date, the Electronic Dealer Renewal Project (EDRP) went into effect, making online license renewal mandatory³. No more snail mail or in-person visits to a SCDMV branch office. The entire process is done online, and you can take the first steps by clicking this link.

For user safety, the system will time out after 20 minutes of inactivity, which may mean you’ll have to start the process all over again. You can save yourself time by preparing the necessary documents, including:

A Bond Continuation Certificate or evidence of a new bond
A Certificate of Liability Insurance or Garage Insurance

If you also conducted any dealer-to-dealer or out-of-state sales, list them on one of the following documents:

A completed Certification of Vehicles Sold by a Dealer (SCDMV Form DLA-1C)
An EVR Sales Volume Verification Letter
A letter-sized document listing at least 15 transactions

If you are providing a document listing at least 15 transactions, each entry must include:

The transaction number
The date of sale
Full name and address of the buyer
The make and year of the vehicle
The Vehicle Identification Number (VIN)

Requesting dealer demonstration plates with your license renewal follows a similar process, but there are specific sales requirements. The number of demonstration plates you can receive depends on your sales volume, with your first two plates requiring at least 15 vehicle sales in the previous 12 months.

It should also be noted that each additional plate requires another 15 sales. The SCDMV system automatically calculates your eligible plates based on your South Carolina retail sales. If you need additional plates but don’t have enough sales, don’t worry. You can supplement your total by providing documentation of out-of-state sales or dealer-to-dealer transactions.

Does South Carolina Require Licensing Courses for Renewals?

Unlike some states, South Carolina does not require continuing education courses for license renewal. Currently, the SCDMV only requires an 8-hour pre-licensing course for new non-franchise dealers⁴. However, it’s wise to review the department’s website regularly for any changes in requirements that could affect your next license renewal.

Keep Your Business Running Smoothly With ACV Auctions

Renewing your license is an important part of keeping your business running smoothly. The less time you have to spend on administrative tasks, the more time you can spend on acquiring inventory and providing excellent customer service. Partner with ACV Auctions to find the best selection of used cars, trucks, and SUVs. Our digital wholesale auction platform is supported by transparent bidding and detailed vehicle condition reports. Thinking about streamlining your sourcing strategy? We’re ready when you are, so join us today.

This site is provided for informational purposes only and should not be construed as legal advice. ACV is not liable for reliance on the information provided herein. We do not endorse, nor are we responsible for, the privacy practices or the content of the sites linked in this blog.

Sources