Motor Vehicle Dealer and Wholesaler Bond (SCDMV Form DLA-1B) ensures that all wholesalers, motorcycles, travel trailers, and wholesale auction dealers must furnish a surety bond in the amount of ($15,000) by South Carolina law. This bond provides security or protection against loss or damage due to fraud or fraudulent representation about a sale or transfer of a motor vehicle by a licensed dealer, wholesaler, or employee.
Understanding Motorcycle Bonds
Motorcycle dealers in South Carolina must obtain a bond from an authorized surety company as mandated by the SCDMV. This security measure protects consumers and ensures that all applicable state laws are followed, assuring trustworthiness with each purchase.
The motorcycle dealer is obligated to provide $15,000 for their Foothills Motorsports Bond; this solidifies confidence in the buying process being both transparent and fair.
These bonds give customers peace of mind knowing they’re protected should any deceptive or fraudulent activities occur during business operations within South Carolina’s borders.
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The General Assembly recently passed, and Governor McMaster signed Senate Bill 549, now Act #51 of 2023, which modernizes the relationship between dealerships and the SCDMV, among other actions.
Act Now to Remain a Licensed South Carolina Dealer
To remain licensed on and after January 1, 2024, you must increase your bond.
Each dealer, besides those holding only a motorcycle dealer license, must increase their bond amount from $30,000 to $50,000 for each licensed dealership. Motorcycle dealers must increase their bond amount from $15,000 to $25,000.
If your bond is not increased by January 1, 2024, your dealer license will expire, and you may not sell vehicles nor motorcycles.
In the future, the SCDMV will also monitor your bond amount electronically via the Automobile Liability Insurance Reporting (ALIR) system. While this system exists, primarily, to ensure personally owned vehicles maintain the State’s minimum insurance coverage to operate on the road, ALIR will now electronically verify bond amounts and statuses, as well. More information on this change will be released in the future.
Beginning January 1, 2024, the validity period for your dealer license will also change from an annual license to a three-year license.
