How to Get a Dealer License in Vermont

In Vermont, dealer licensing runs through the Vermont Department of Motor Vehicles (DMV) — Dealer Services. To get a used car dealer license in Vermont you'll need a registered business, a compliant location, a $20,000–$35,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Vermont auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Vermont Department of Motor Vehicles (DMV) — Dealer Services's current pages before you file.

Agency: Vermont Department of Motor Vehicles (DMV) — Dealer Services
Surety bond: $20,000–$35,000
License term: One-year term with a two-year option. Renew via the Dealer Renewal forms (VD-007 / VD-010), and keep the surety bond in force through the registration year plus one year thereafter.
Sales threshold: Being 'engaged in the business' means selling or exchanging at least 12 cars or motor trucks in the immediately preceding year (or 24 over the two preceding years) — 23 V.S.A. § 4(8). For snowmobiles, motorboats, ATVs, and trailers the threshold is just 1 in the preceding year.
Pre-licensing: None. There is no pre-licensing course or exam. Applicants instead undergo a background check, a full credit report review, and a DMV investigator inspection before the license and bond are finalized.

License types in Vermont

License type	What it covers
Used Car Dealer	Retail and wholesale sales of used cars and trucks under a dealer's certificate (23 V.S.A. § 451); a surety-bond type.
New Car Dealer	New-vehicle sales under a franchise, plus used vehicles; also a surety-bond type.
Finance / Auction Dealer	Finance-company and auction dealer registrations, priced the same as new/used car dealers.
Motorcycle / ATV / Snowmobile / Trailer / Motorboat Dealer	Lower-fee registrations by asset type; most non-car types do not require a surety bond.

What it costs

Item	Cost	Notes
New/Used/Finance/Auction dealer registration	$603 / year ($1,206 for 2 years)	Includes 3 dealer plates; +$66 each additional car-dealer plate
Motorcycle dealer registration	$75 / year	Lower-fee asset types range from $42 (motorboat) to $148 (trailer/highway equipment)
Surety bond	$20,000–$35,000 penal sum	Coverage, not a fee — premium paid to a surety based on your sales tier
Additional dealer plates	$6–$66 each	Beyond the free allotment; authorized on a sales-volume scale
6% Purchase & Use Tax	Collected at sale	On the greater of purchase price or J.D. Power clean trade-in value, capped at $2,486 for some vehicle types

Step by step

Confirm you meet the 12+ cars/trucks-per-year threshold and secure a compliant Vermont place of business.
Complete the Dealer Application (Form VD-008) in full, signed by each owner or corporate officer.
Submit background/authority-to-release forms (VD-164 and DMV-108) and a full credit report for each owner/officer.
Provide zoning compliance (VD-165), proof of deed or lease, and active insurance covering the dealer plates.
Include payment for the license term and call Dealer Services (802-828-2038) to confirm the packet is complete before mailing.
Pass the DMV investigator inspection, post the surety bond (VD-114/114a) in the amount set by your sales tier, and receive your dealer's certificate and plates.

Premises & temp tags

Location: You must have an established place of business in a Vermont town where the dealer's vehicles are regularly kept or exposed for sale under the dealer's control (23 V.S.A. § 451), with a separate certificate for each location. The DMV requires proof of deed or lease, a local zoning compliance form (VD-165), and an active insurance policy covering the dealer plates, plus a DMV investigator inspection before the license is issued.

Temp tags / plates: Vermont dealers issue temporary 'D' registration plates to buyers at the point of sale and log issuance on Form VN-060 (Dealer Issued Registration Plates), reconciling with the DMV. Registration/title applications must reach the DMV within 15 days of the date of sale.

Vermont-specific things to know

The famous 'Vermont registration loophole' is narrower but still real: Vermont issues no title for older vehicles (roughly 15 model years old — the DMV page currently says 2009 or older), so a registration plus bill of sale is the ownership document. Vermont's title law changed July 1, 2024 (Act 165), and the DMV now recommends getting a title anyway for out-of-state buyers.
Vermont charges a 6% Purchase & Use Tax on vehicles, assessed on the greater of the purchase price or J.D. Power clean trade-in value (capped at $2,486 for some vehicle types); dealers can dispute the book value with a Dealer Appraisal (Form VD-012).
A separate dealer's certificate is required for each business location, and new applicants automatically owe the top $35,000 bond regardless of projected volume.
Registration and title applications must reach the DMV within 15 calendar days of the date of sale, and odometer disclosure is required for model-year 2011 or newer vehicles.

Official Vermont resources

Vermont dealer forms →

Vermont dealer license FAQ

How much does a dealer license cost in Vermont?+

New/Used/Finance/Auction dealer registration: $603 / year ($1,206 for 2 years); Motorcycle dealer registration: $75 / year; Surety bond: $20,000–$35,000 penal sum; Additional dealer plates: $6–$66 each; 6% Purchase & Use Tax: Collected at sale. Plus the $20,000–$35,000 surety bond (you pay a small annual premium on that, not the full amount).

How big is the dealer bond in Vermont?+

Vermont requires a $20,000–$35,000 surety bond. New and Used Car dealers must post a surety bond (or letter of credit / CD), tiered by prior-year car sales: new applicants and dealers selling 251+ pay $35,000; 100–250 pay $30,000; 25–100 pay $25,000; under 25 pay $20,000. The bond is submitted after DMV investigator approval and must stay in effect for the registration year plus one year. Non-car dealer types (ATV, snowmobile, trailer, etc.) generally require no bond.

Do you need a physical lot to get a dealer license in Vermont?+

You must have an established place of business in a Vermont town where the dealer's vehicles are regularly kept or exposed for sale under the dealer's control (23 V.S.A. § 451), with a separate certificate for each location. The DMV requires proof of deed or lease, a local zoning compliance form (VD-165), and an active insurance policy covering the dealer plates, plus a DMV investigator inspection before the license is issued.

How many cars can you sell in Vermont without a dealer license?+

Being 'engaged in the business' means selling or exchanging at least 12 cars or motor trucks in the immediately preceding year (or 24 over the two preceding years) — 23 V.S.A. § 4(8). For snowmobiles, motorboats, ATVs, and trailers the threshold is just 1 in the preceding year.

How long is a Vermont dealer license valid?+

One-year term with a two-year option. Renew via the Dealer Renewal forms (VD-007 / VD-010), and keep the surety bond in force through the registration year plus one year thereafter.

Is dealer training or an exam required in Vermont?+

None. There is no pre-licensing course or exam. Applicants instead undergo a background check, a full credit report review, and a DMV investigator inspection before the license and bond are finalized.

How do temporary tags work for Vermont dealers?+

Vermont dealers issue temporary 'D' registration plates to buyers at the point of sale and log issuance on Form VN-060 (Dealer Issued Registration Plates), reconciling with the DMV. Registration/title applications must reach the DMV within 15 days of the date of sale.

Data verified 2026-07-17. Requirements change — confirm with the Vermont Department of Motor Vehicles (DMV) — Dealer Services before filing.

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