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 indemnifies the State and purchasers for fees or purchase-and-use tax the dealer collected but failed to remit. It must remain in force for the pending registration year and one year afterward, and surety liability is limited to the unremitted fees or tax. VD-114 requires claims within one year after the dealer ceases to be licensed or after cancellation, whichever comes first.