South Carolina Motor Vehicle Dealer & Wholesaler Bond
Overview
South Carolina attaches an unusually sharp consequence to its dealer bond: if the bond drops below the required amount, the license expires on the spot. Under S.C. Code section 56-15-320(B), every motor vehicle dealer and wholesaler must furnish a surety bond in the penal amount of $50,000 before a license is issued, and the statute provides that the license expires immediately if the bond amount falls below $50,000 — whether from cancellation or a paid claim that isn't restored. Annual license continuation requires proof the bond remains in force.
Who Needs This Bond?
Applicants for a South Carolina motor vehicle dealer or wholesaler license furnish this bond to the state before the license issues — retail dealers selling to the public and wholesale dealers moving vehicles between licensees alike. Section 56-15-320(B) makes the $50,000 bond a condition for both license classes, so whichever side of the business you operate, the same statutory bond stands behind your license.
What is this Bond For?
The bond gives South Carolina vehicle buyers and the state a financial remedy when a licensed dealer's or wholesaler's unlawful conduct causes a loss — failures like not delivering good title or violating chapter 15's dealer provisions. A harmed party can recover against the bond up to its $50,000 penal amount, and because the statute keys license validity to the bond staying at full value, a paid claim puts real pressure on the dealer to restore coverage immediately.
When is it Required?
The bond must be furnished before the license is issued, and South Carolina's continuation rule keeps it front of mind every year: annual license continuation requires showing the bond remains in force, and the statute expires the license immediately if the bond amount drops below $50,000. That makes continuous, full-value coverage a live licensing condition, not a one-time filing.
Where Does it Apply?
This is a statewide South Carolina requirement under Title 56, Chapter 15 of the South Carolina Code, administered through the state's dealer licensing program. It applies to licensed dealers and wholesalers in every South Carolina county, because the requirement comes from the state code rather than any local ordinance.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed South Carolina dealer bond is ready to file with the state as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the South Carolina Code in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond to you in time for your licensing filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- $50,000 penal amount surety bond required before dealer or wholesaler license issuance; license expires immediately if bond drops below the required amount; bond verified at annual continuation: South Carolina Code §56-15-320 (verified July 16, 2026)