To sell cars in Vermont, you need to apply for a license at the state Agency of Transportation, Department of Motor Vehicles (DMV). The agency issues several different kinds of licenses, based on the types of vehicles you want to sell.
The licensing requirements are the same for all types of dealers and include passing a background check, submitting a credit report, and a Vermont auto dealer bond, among others.
Want to know how to get a Vermont dealer license? See our full guide below!
The main types of dealer licenses available in Vermont include:
- New and used car dealer
- Motorcycle/Moped dealer
- Trailer dealer
You must register at three different government agencies before you can proceed with your license application. These are the Secretary of State, the Department of Taxes, and the Department of Labor. The easiest way to register in all of these three at once is to use the Online Business Service Center.
In addition to the above, you will also require a Federal Employer Identification Number (FEIN) from the Internal Revenue Service (IRS). You can apply online via the IRS website to get your FEIN.
Finally, make sure to check with your city or county whether there are any local registration requirements you need to comply with.
All dealers require a dealership location which complies with several requirements. These are:
- Zoning compliance certificate from your town or a signed statement from a local government representative that no zoning exists
- The location must either be owned or leased
- The building must be at least 1,200 square feet and used primarily for the purpose of selling vehicles
- A separate dealer office area which is heated which offers reasonable accommodations to conduct business with clients
- The office area must also be used to house and maintain records, and the dealer license certificate must be displayed in the area and be visible to the public
- A display area that’s in the immediate proximity of the main building
- A sign that is visible to the public and which displays the name of the dealership
- Must be open at least 146 days and a minimum of six hours per day
- Must sell at least 12 vehicles per year
When you’ve secured a dealership location, you can proceed with filling out your application and compiling all other supporting documents.
Begin by completing the Application For Dealer Registration form.
You will also need to attach the following documents to your application before you send it to the DMV:
- A completed Zoning Compliance Certification
- Proof of financial responsibility/automobile liability policy in the following amounts:
- Minimum $25,000 for one person and $50,000 for two or more persons killed or injured, and $10,000 for property damages in any one accident
- A Vermont auto dealer bond
- A copy of your lease agreement, if you rent the dealership location or a copy of the deed, if you own the property
- A copy of your tax number certificate from the Department of Taxes
- A credit report
- A completed Dealer License Background and Authority to Release Information form for every applicant
- A franchise agreement and a valid sales and service agreement (for new dealer license applicants only)
All license applicants must obtain a Vermont auto dealer bond in the amount of $35,000.
Later, upon renewing your license and bond, the bond amount will differ based on the number of sales in the preceding year.
- $20,000 for fewer than 25 vehicles
- $25,000 for 25-100 vehicles
- $30,000 for 101-250 vehicles
- $35,000 for 251 vehicles or more
The purpose of the surety bond is to serve as a guarantee that you will comply with all state laws and rules that apply to Vermont dealers.
When you have compiled are required documents, submit your application to the DMV at the following address:
Vermont Department of Motor Vehicles
120 State Street Montpelier
You may have to wait up to 6 weeks for your application to be reviewed and approved. Upon approval, you will need to pay a license fee of $503.
You will be issued 3 plates at the time of registration. You may obtain more plates for $55 per plate if you are a new or used car dealer in Vermont, or $10 per plate if you are a motorcycle and trailer dealer.
The amount of additional plates depends on your expected amount of sales. The number of additional plates you may require is listed in your Vermont dealer license application form.
Initial licenses are valid for one year from the date of issuance. You must renew your license and bond by the 15th of the month in which they expire. You may renew them for a period of two years.
If you have any further questions about the licensing process, contact the Dealership Licensing Division at 802 828-2038.