License & permit · Vermont

Vermont Motor Vehicle Dealer Bond

Vermont will not issue a new or used motor vehicle dealer registration until the applicant posts financial security under 23 V.S.A. § 453(g). The statute accepts a surety bond, a letter of credit, or a certificate of deposit from an entity authorized to transact business in the same state, in an amount between twenty thousand and thirty-five thousand dollars based on units sold in the previous year on a schedule the Motor Vehicle Commissioner sets. Official Form VD-114 publishes that schedule: twenty thousand dollars for fewer than twenty-five vehicles, twenty-five thousand for twenty-five to one hundred, thirty thousand for one hundred one to two hundred fifty, and thirty-five thousand for two hundred fifty-one or more—or for any applicant who was not registered as a dealer in the immediately prior year. The security protects the State and buyers if the dealer collected fees or purchase-and-use tax but did not send them in. Keep it for the registration year plus one year after. Claims can be filed for one year after you stop or cancel, whichever comes first. The surety’s total payout cannot exceed the unremitted fees or tax.