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Learn more about South Carolina motor vehicle dealer bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.
Like most other states, South Carolina requires motor vehicle dealers to purchase a surety bond as part of the process of obtaining a business license. This bond is known as a motor vehicle dealer bond, or auto dealer bond.
The purpose of these bonds is to ensure that auto dealers abide by all relevant state laws (those contained in Title 56 of the South Carolina Code of Laws) and to protect consumers against financial loss if they don�t.
Bond Penalty Amount: $30,000
Bond Expiration Date: Varies/Yearly
Who Needs Them?
There are two tiers of auto dealer bonds in South Carolina:
Motor Vehicle Wholesale License. Wholesalers, motorcycle dealers, dealers who sell travel trailers, and wholesale auction dealers all must purchase bonds with a required bond amount of $15,000.
Motor Vehicle Dealer�s License. The required bond amount for other motor vehicle dealers is $30,000.
Understanding South Carolina Motor Vehicle Dealer Bonds
Every South Carolina dealer bond is a contract between three parties:
The obligee, the party requiring the bond, is the South Carolina Department of Motor Vehicles
The principal, the party required to be bonded, is the motor vehicle dealer
The surety is the company that underwrites and issues the bond
The terms of the bond specify the actions that can result in a claim against the bond. In the event of a claim, the surety will conduct an investigation to determine whether it is valid. Although the responsibility for paying the claim ultimately belongs to the dealer, the surety will pay the claimant initially and give the dealer some time to repay that amount. It�s not insurance, so the dealer�s signature on the bond agreement means that they are ultimately responsible for repaying any claims.
What Do They Cost?
The premium the dealer pays for an auto dealer bond is only a fraction of the $15,000 or $30,000 bond amount. The most important consideration in the bond underwriting process is the dealer�s personal credit score, supplemented by personal and business financial statements if requested by the surety.
You can expect to pay anywhere between .625% to 5% of the bond penalty amount if you maintain good credit.��For individuals with lower credit ratings, we can still offer the most competitive premiums with financing sometimes being an option. That’s $94-$750 for a $15,000 bond or $188 to $1,500 for a $30,000 bond.
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Frequently Asked Questions
How do I renew my South Carolina auto dealer bond?
To renew your South Carolina auto dealer bond, you need to submit a bond renewal application to the South Carolina Department of Motor Vehicles, along with the required bond amount and any supporting documents.
Can I get a SC auto dealer bond with bad credit?
Yes, you can obtain a South Carolina auto dealer bond even with bad credit, as the most important consideration is your personal credit score, which can be supplemented by personal and business financial statements if requested by the surety.
What is the bond amount required for SC auto dealers?
The bond amount required for South Carolina auto dealers is $15,000 for wholesalers, motorcycle dealers, dealers who sell travel trailers, and wholesale auction dealers.
Who needs a South Carolina auto dealer bond?
Wholesalers, motorcycle dealers, dealers who sell travel trailers, and wholesale auction dealers in South Carolina are required to purchase a $15,000 motor vehicle dealer bond.
What is the purpose of an auto dealer surety bond?
The purpose of an auto dealer surety bond is to provide financial protection for the state motor vehicle department and customers against potential misconduct or violations by the auto dealer.
Can I get a South Carolina surety bond with bad credit?
Yes, you can get a South Carolina surety bond with bad credit, although the premium may be higher compared to those with good credit.
How much does an auto dealer bond typically cost?
The cost of an auto dealer bond typically ranges from 0.625% to 5% of the bond amount, which is $15,000 or $30,000 depending on the state requirements. The premium paid by the dealer is a fraction of the full bond amount.
How long does it take to get a South Carolina surety bond?
The process of obtaining a South Carolina surety bond typically takes 1-2 business days, provided all required information is submitted accurately.
What happens if I violate the terms of my auto dealer bond?
If you violate the terms of your auto dealer bond, the surety company that issued the bond may be required to pay claims against the bond. This could result in the surety seeking reimbursement from you for any payouts made on your behalf.
Can anyone get a South Carolina auto dealer bond?
To get a South Carolina auto dealer bond, individuals must meet certain requirements set by the state, such as maintaining good personal credit and providing financial statements if requested by the surety.
What is the cost of a South Carolina surety bond?
The cost of a South Carolina surety bond typically ranges from 0.625% to 5% of the bond amount, which is $15,000 or $30,000 depending on the type of motor vehicle dealer.
What happens if I violate my SC auto dealer bond?
Violating the terms of your South Carolina auto dealer bond can result in claims being filed against the bond, for which you as the principal are ultimately responsible for repaying.
How do I file a South Carolina surety bond claim?
To file a claim on a South Carolina surety bond, contact the surety company that issued the bond and follow their claims process. Provide documentation supporting the claim against the bond.
How long does it take to get approved for an auto dealer bond?
The time it takes to get approved for an auto dealer bond typically ranges from 1-5 business days, depending on the speed of the application process and the surety company's review.
What is the purpose of a South Carolina auto dealer bond?
The purpose of a South Carolina auto dealer bond is to provide financial protection for the state Department of Motor Vehicles and consumers against any unlawful or unethical practices by the motor vehicle dealer.
Who issues South Carolina surety bonds?
South Carolina surety bonds are issued by surety companies, which are specialized insurance providers that guarantee the performance of a principal (the bond purchaser) to an obligee (the party requiring the bond).
What types of surety bonds are required in South Carolina?
South Carolina requires surety bonds for motor vehicle dealers, including wholesalers, motorcycle dealers, dealers who sell travel trailers, and wholesale auction dealers. The required bond amount is $15,000.
Can I get an auto dealer bond with bad credit?
Even with bad credit, you can still obtain an auto dealer bond, although you may have to pay a higher premium based on your credit score.
What is a South Carolina surety bond used for?
A South Carolina surety bond is used to guarantee that motor vehicle dealers in the state will comply with all relevant laws and regulations.
Who requires South Carolina auto dealers to be bonded?
The South Carolina Department of Motor Vehicles requires South Carolina auto dealers to be bonded.
What is the bond amount required for auto dealers?
The bond amount required for auto dealers in South Carolina is $15,000 for wholesalers, motorcycle dealers, dealers who sell travel trailers, and wholesale auction dealers.
What is the process for getting a SC auto dealer bond?
The process for getting a South Carolina auto dealer bond involves purchasing a bond with a required bond amount of $15,000, which is a contract between the dealer, the South Carolina Department of Motor Vehicles, and the surety company that issues the bond.
Who requires auto dealers to obtain a surety bond?
The South Carolina Department of Motor Vehicles requires auto dealers to obtain a surety bond.
How long does it take to get a SC auto dealer bond?
The process of obtaining a South Carolina auto dealer bond typically takes 1-3 business days, depending on the surety company and the applicant's creditworthiness.
How do I apply for an auto dealer bond?
To apply for an auto dealer bond, you can use the convenient online application or contact the provider for more information. The process typically involves providing personal and business financial information for the bond underwriting.
How much does a SC auto dealer bond typically cost?
The cost of a South Carolina auto dealer bond typically ranges from $94 to $1,500, depending on the bond amount and the dealer's personal credit score.
What is an auto dealer bond, and why is it necessary?
An auto dealer bond is a surety bond required by the South Carolina Department of Motor Vehicles for all motor vehicle dealers. It serves as a guarantee that the dealer will comply with state laws and regulations governing their business activities.
What documents are needed for a SC auto dealer bond?
The documents needed for a South Carolina auto dealer bond include the completed bond application, a power of attorney, and the $15,000 or $30,000 bond amount, which must be filed with the South Carolina Department of Motor Vehicles Dealer Licensing and Audit Unit.
Are there penalties for not having a dealer bond?
Failure to obtain a required dealer bond in South Carolina can result in penalties, including fines and the potential revocation of the dealer's license.
How often do I need to renew my dealer bond?
The renewal period for a South Carolina motor vehicle dealer bond is typically annual. Dealers must renew their bond each year to maintain their license and continue operating their business.
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Required Bond Amounts
Wholesalers, motorcycle dealers, dealers who sell travel trailers, and wholesale auction dealers all must purchase bonds with a required bond amount of $15,000. The terms of the bond specify the actions that can result in a claim against the bond.
The premium the dealer pays for an auto dealer bond is only a fraction of the $15,000 or $30,000 bond amount. The most important consideration in the bond underwriting process is the dealer's personal credit score, supplemented by personal and business financial statements if requested by the surety.
Purchasing the Bond
After you receive your vehicle dealer bond from Single Source Surety, you will need to file it along with the attached power of attorney with the South Carolina Department of Motor Vehicles Dealer Licensing and Audit Unit.
You can expect to pay anywhere between .625% to 5% of the bond penalty amount if you maintain good credit. For individuals with lower credit ratings, financing may be an option.
