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All state guides Vermont dealer license

How to get a used car dealer license in Vermont

You apply to the Vermont Department of Motor Vehicles for a used car dealer registration on Form VD-008. A first-time applicant posts $35,000 in security, pays $603 for a one-year registration with three plates, and needs a building of at least 1,200 square feet.

  • Sourced to Vermont DMV
  • Checked October 2026
  • Free
License
Dealer registration, Used Car (UCD)
Surety bond
$35,000 for new applicants
State fee
$603 for one year
Pre-license course
No pre-licensing course listed
Background check
Background and credit check
License term
1 year, 2-year option
What the state asks for

Vermont dealer license requirements

The figures a first-time used car dealer needs before applying to Vermont DMV. Each row shows how well it is supported.

Surety bond
$35,000 for new applicantsOfficial source

A surety bond, letter of credit or certificate of deposit. After the first year the amount follows annual sales: $20,000 under 25 vehicles, $25,000 for 25 to 100, $30,000 for 100 to 250, $35,000 above that.

State license fee
$603 for one yearOfficial source

Used car dealer registration, including three dealer plates. The application also offers a two-year term at $1,206. Extra plates, where your sales volume allows them, are $66 each after the free ones.

Pre-license education
No pre-licensing course listedOfficial source

The Vermont DMV new dealer checklist lists no course or exam. The application notes that the bond is submitted after approval and training by a DMV investigator, so expect a session with your inspector.

Background check
Background and credit checkOfficial source

Each owner or corporate officer files the Dealer License Background and Authority to Release form (VD-164) with Form DMV108, plus a full credit report. The DMV checklist does not list fingerprints.

Insurance
25/50/10 liability minimumOfficial source

You show proof of financial responsibility under 23 V.S.A. 800 when you apply: at least $25,000 per person, $50,000 per crash and $10,000 property damage. The checklist asks for an active policy on the dealer plates.

Business location
1,200 sq ft building, open 146 daysOfficial source

You must own the property or hold a lease that runs through the end of the registration year, with a building of at least 1,200 square feet used mainly for the dealership. You must be open at least 146 days a year.

License term and renewal
1 year, 2-year optionOfficial source

A dealer registration runs one year from the first day of the month of issue. The application offers a two-year term at double the fee, but the DMV checklist asks new dealers to pay for one year.

Sales allowed without a license
Fewer than 12 a yearOfficial source

Vermont law treats you as engaged in the business, and required to register, at 12 cars or trucks sold or exchanged in a year, or 24 over two years. A new applicant must reasonably expect to reach that level.

Processing time
Not publishedConfirm with the agency

Vermont DMV does not publish a processing time for a new dealer registration. Call Dealer Services at 802-828-2038 before you mail the packet.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Vermont Department of Motor Vehicles, Dealer Services

License you apply for

Dealer registration, Used Car (UCD)

Official licensing page

The statute gives a range, the form sets the amount

23 V.S.A. 453 only says the security is between $20,000 and $35,000 on a schedule set by the Commissioner. The schedule is printed on the application (Form VD-008, 2/2025), and it puts a new applicant at $35,000. The same form says up to five additional plates are free, while the statute says two. Confirm both points with Dealer Services before you buy the bond or order extra plates.
Step by step

How to get a Vermont dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Call Dealer Services and gather the packet

    Vermont DMV asks new applicants to call Dealer Services at 802-828-2038 before mailing anything. You will need the application (VD-008), the new dealer checklist (VD-024), the background release forms (VD-164 and DMV108) and the zoning certification (VD-165). Register the business name with the Secretary of State and get your federal and Vermont tax ID numbers.

    Dealer Services 802-828-2038

  2. Secure a qualifying location

    You need to own the property or lease it through at least the last day of the registration year. The building must be at least 1,200 square feet and used primarily for the dealership. Have the town zoning official sign Form VD-165, and record the lease with the town if its term is longer than one year.

    23 V.S.A. 450a · Form VD-165

  3. Complete the owner background file

    Each owner or corporate officer fills out the Dealer License Background and Authority to Release form and Form DMV108, and supplies a full credit report. A conviction for extortion, forgery, fraud, larceny or embezzlement in the past 10 years, or an unsatisfied consumer protection judgment, makes a person ineligible.

    Forms VD-164 and DMV108

  4. Arrange insurance

    Get an active liability policy that covers the dealer plates. You must show proof of financial responsibility when you apply, which means at least $25,000 per person, $50,000 per crash and $10,000 for property damage.

    23 V.S.A. 800

  5. File Form VD-008 with the fee

    Check Used Car (UCD), list your business days and hours, and have each owner or corporate officer sign a copy of the third page. The fee is $603 for a one-year registration with three plates. Extra plates depend on your reasonable estimate of first-year sales. Send a check or money order payable to VT DMV.

    Form VD-008 · $603

  6. Meet the DMV investigator and post the security

    The application says the bond is submitted after approval and training by a DMV investigator. A new applicant posts $35,000 as a surety bond, a letter of credit or a certificate of deposit assigned to the Commissioner. It must stay in effect for the registration year and one year after.

    $35,000 for a new applicant

Practical advice

The building rule is the hard part in Vermont: 1,200 square feet used mainly for the dealership rules out most small shared offices. Get the zoning certification signed and the lease dated through the end of the registration year before you spend on anything else. Budget for the full $35,000 security in year one, even though a dealer selling under 25 vehicles a year drops to $20,000 later.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Vermont dealer location requirements

What the state checks at the business address.

  • Own the property, or hold a lease that runs at least through the last day of the registration year.
  • A building of at least 1,200 square feet used primarily for the dealership, with room to keep the records the law requires.
  • Open at least 146 days a year. The application calls for six hours a day, at least four of them between 6 a.m. and 6 p.m.
  • Local zoning sign-off on the Vermont Zoning Compliance Certification (Form VD-165), or a statement that the town has no zoning rules.
  • A lease with a term longer than one year must be recorded with the town.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Vermont dealer license

Renewal and ongoing duties

Renew the registration each year. Your security amount is reset each year from the prior year's sales, and it must stay in force for the registration year and one more year. Stay open at least 146 days a year and keep to the schedule you filed. Send registration and title applications to the DMV within 15 calendar days of each sale.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Vermont dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Vermont?

Apply to the Vermont DMV for a dealer registration on Form VD-008 and check Used Car. You need a building of at least 1,200 square feet that you own or lease through the registration year, local zoning sign-off on Form VD-165, background release forms and a credit report for each owner, proof of liability insurance, the $603 fee and, once a DMV investigator approves you, $35,000 in security.

How much is the dealer bond in Vermont?

A new applicant posts $35,000. After that the amount follows the prior year's sales: $20,000 under 25 vehicles, $25,000 for 25 to 100, $30,000 for 100 to 250 and $35,000 for 251 or more. Vermont accepts a surety bond, a letter of credit or a certificate of deposit, and it must stay in effect for the registration year and one year after.

How much does a Vermont dealer license cost?

The registration fee for a dealer in new or used cars or trucks is $603 for one year, and it includes three dealer plates. The application also shows a two-year term at $1,206. Additional plates, where your sales volume allows them, are $66 each after the free ones. Your bond premium, insurance and credit reports are separate costs.

Do I need a pre-licensing course in Vermont?

The Vermont DMV new dealer checklist does not list a course or an exam. The application does say the bond is submitted after approval and training by a DMV investigator, so expect a training session with your DMV inspector before the registration is issued.

Can I get a Vermont dealer license without a car lot?

Not without a commercial building. Vermont law requires you to own or lease a place of business with a building of at least 1,200 square feet used primarily for the dealership, and to be open at least 146 days a year. The town must also certify that the location complies with local zoning.

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

Fewer than 12 in a year. Vermont defines being engaged in the business as having sold or exchanged at least 12 cars or trucks in the preceding year, or 24 in the preceding two years. The same threshold works the other way: you can only register as a dealer if you sell that many, or reasonably expect to in your first year.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with Vermont DMV or your attorney before you sign a lease or pay a fee.

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