South Carolina begins shift toward electronic vehicle titles under new DMV law

COLUMBIA, S.C. (WIS) - South Carolina drivers are seeing a handful of changes under a new DMV law that took effect this week, but supporters say the most significant change could still be months away.

The legislation extends temporary vehicle tags from 45 to 60 days and allows drivers to voluntarily add their blood type to a driver’s license or state identification card with documentation from a medical provider. The law also includes updates affecting vehicle dealers, auctions and trailer registrations.

But industry leaders say the long-term impact will come from the state’s transition to electronic vehicle titles.

“If it’s paper and there’s no technology to it, the easier it is to copy or fraudulently reproduce,” said Sims Floyd, executive vice president of the South Carolina Automobile Dealers Association.

Under the law, commercial entities involved in vehicle titling, including dealers, lenders and auctions, will be required to use the state’s electronic title system. The system is designed to allow vehicle ownership transfers, lien filings and lien releases to be completed digitally rather than through traditional paper documents.

CHAMP Titles says moving titles online will reduce paperwork and create a more efficient process for vehicle transactions.

“There’s no mishaps in the paperwork trail because all of the verifications have been done digitally, so it does end up having the knock-on effect of speeding things up for consumers,” said Shane Bigelow, CEO and co-founder of CHAMP Titles, the company helping develop South Carolina’s electronic title system.

Supporters also argue digitization could help lower costs throughout the vehicle sales process.

“The dealers want digitization because it drops their costs, which allows them to sell at lower prices,” Bigelow said. “So it’s faster and it’s cheaper.”

The South Carolina Automobile Dealers Association says electronic titles could also provide additional protection against fraud while reducing problems associated with lost, damaged or misplaced paper titles.

“It takes that paper and converts it to an electronic document that can be stored on your telephone at the DMV. It’s locked in what they call a vault and so it’s much more secure,” said Floyd.

The law requires the South Carolina Department of Motor Vehicles to implement the electronic title system and have it operational no later than March 31, 2027. The system will replace many paper-based title transactions involving dealerships, lenders and auto auctions, though paper titles may still be used in certain private vehicle sales between individuals.

Supporters say the move is another step toward modernizing the state’s DMV and creating a faster, more secure process for vehicle ownership transfers.

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