To apply, you must:
9 Vermont Dealer License Requirements
Vermont Dealer Licenses are issued by the Vermont Department of Motor Vehicles (DMV). This page covers Vermont's 12 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. Vermont's Application for Dealer Registration (VD-008) lists 3 business types: Individual, Partnership, and Corporation. The statute defines a Dealer as “a person, partnership, corporation, or other entity” (23 V.S.A. § 4).
An LLC keeps your business separate from your personal life and adds trust to the name. Question 8 of the application asks for the name your business is registered under with the Vermont Secretary of State.
Choose your Dealer License Type
Vermont's 12 Dealer License types are checkboxes on one application, VD-008, and the form lets you check more than one. Vermont calls each one a dealer registration. Cars and trucks are 2 of the 12, New Car Dealer and Used Car Dealer; each of the other 10 covers one vehicle type or activity.
| License Type | What It Lets You Do |
|---|---|
| New Car DealerNCD | Buy and sell new vehicles. Requires the 1,200-square-foot building and being open 146 days a year |
| Used Car DealerUCD | Buy and sell used vehicles. The same building and 146-day rules apply |
| Auction DealerACD | Defined outside “dealer” in the statute. Exempt from the building, hours, credit-report, and 12-sale renewal rules |
| Finance Car DealerFCD | Defined outside “dealer” in the statute, with the same exemptions as an Auction Dealer |
| Farm Equipment DealerDLF | Buy and sell farm equipment. The 1,200-square-foot building rule applies |
| Motorized Highway Building Equipment DealerDLH | Buy and sell motorized highway-building equipment. The building rule applies |
| Motorcycle/Motor-Driven Cycle DealerDLM | Buy and sell motorcycles and motor-driven cycles. The building rule applies |
| Trailer DealerDLT | Buy and sell trailers. The building rule applies |
| All-Terrain Vehicle (ATV) DealerATV | Buy and sell ATVs. Exempt from the building and 146-day rules |
| Motorboat DealerMBD | Buy and sell motorboats. Exempt from the building and 146-day rules |
| Snowmobile DealerSMD | Buy and sell snowmobiles. Exempt from the building and 146-day rules |
| Non-Franchised Zero-Emission ManufacturerEV | For a manufacturer of only zero-emission vehicles, with its own questions on VD-008 |
Get your Dealer Bond (Surety Bond)
A Vermont New Car or Used Car Dealer License requires a Dealer Bond of $20,000 to $35,000, filed with the Commissioner of Motor Vehicles (23 V.S.A. § 453). The bond protects customers if you break Vermont's dealer laws. A new applicant is bonded at $35,000, which costs only $350 a year at the base rate, after a credit check.
The DMV collects the bond after the Field Inspector approves you, not with the application. It stays in effect for the registration year plus 1 year after. A letter of credit or certificate of deposit works in place of a bond.
The New Dealer Checklist also applies the bond to Trailer, Highway Building Equipment, Motorcycle, Motor-Driven Cycle, and Farm Equipment Dealers.
The amount follows your sales in the previous year:
- New applicant: $35,000
- Under 25 vehicles: $20,000
- 25 to 100 vehicles: $25,000
- 100 to 250 vehicles: $30,000
- 251 or more vehicles: $35,000
Dealer 101 Insurance Services
Licensed in Vermont · NPN 22346185
| License Type | You Pay | Bond Amount |
|---|---|---|
| New Car DealerVermont - Continual Motor Vehicle Dealer. New applicant tier; credit check required | $350/yearabout $29 a month | $35,000 |
| Used Car DealerVermont - Continual Motor Vehicle Dealer. New applicant tier; credit check required | $350/yearabout $29 a month | $35,000 |
Get your Liability Insurance — for your dealer plates
A Vermont Dealer License has no dealer-specific insurance policy. The application asks for proof of insurance under 23 V.S.A. § 800, the auto liability law every Vermont vehicle owner follows, for the vehicles you drive on dealer plates.
The minimum is $25,000 per person and $50,000 per crash for injury, plus $10,000 for property damage. A $115,000 self-insurance filing works in place of a policy.
Set up your Dealer Office (Place of Business)
A Vermont New Car or Used Car Dealer License requires a building of at least 1,200 square feet, “used primarily for the business of the dealership” (23 V.S.A. § 450a). The same rule applies to Farm Equipment, Highway Building Equipment, Motorcycle/Moped, and Trailer Dealers.
You own the property with a recorded deed, or lease it past the last day of the registration year. Finance Car and Auction Dealers are exempt from the building and hours rules. Snowmobile, ATV, and Motorboat Dealers are exempt from the 1,200-square-foot and 146-day rules too.
Every applicant still certifies on VD-008 that they own or lease the dealership's property and building, and that it meets local zoning. The table below is the rule's own list.
| What Vermont Requires | |
|---|---|
| Building | At least 1,200 square feet, used primarily for the dealership. The rule defines “primarily” as more than 90% of the business's gross receipts |
| Office | A heated Dealer office area, separate from any unrelated business, with reasonable accommodations to meet the public. The dealer records are kept there |
| Certificate | Your dealer's certificate displayed in the office, visible to the public |
| Hours | Car and truck Dealers open at least 146 days a year, 6 hours a day, with 4 consecutive hours between 6 a.m. and 6 p.m., reported on the application |
| Ownership | A recorded deed, or a lease that runs at least to the last day of the registration year |
| Zoning | Proof of zoning compliance on VD-165, or a signed statement from a municipal agent that the town has no zoning |
Pass the Background Check (Criminal Record Check)
For the 7 license types on DMV's checklist, every owner or corporate officer signs 2 background forms. They are the Dealer License Background & Authority to Release (VD-164) and the Request for Criminal Record Check (DMV-108). DMV-108 authorizes a search of the Vermont Criminal Information Center and the National Crime Information Center, and Vermont takes no fingerprints.
Each owner or officer also sends a full credit report from a credit bureau of your choosing, at your own cost. Finance Car and Auction Dealers skip the credit report. None of these are required again at renewal.
If you have a record
- 5 crimes bar you for 10 years. A conviction for extortion, forgery, fraud, larceny, or embezzlement in the 10 years before you apply makes you ineligible (23 V.S.A. § 450a). The clock runs from the conviction or from your release from prison for it, whichever is later.
- Felony or misdemeanor makes no difference. The statute names the crime, not its grade, so a misdemeanor larceny counts.
- Judgments count too. An unsatisfied consumer-protection judgment bars you, and VD-164 asks about civil judgments for willful fraud and bad checks in the past 5 years.
- Pending charges aren't asked about. Every question says “convicted.” A deferred sentence you completed is not a conviction.
- An expunged or sealed record clears it. Vermont law makes your answer “no criminal record exists” (13 V.S.A. § 7606). Qualifying felonies can be sealed 7 years after you finish your sentence; misdemeanors, 3 years.
- You can appeal the record check. DMV-108 gives you the right to appeal the result to the Vermont Criminal Information Center.
Get your Dealer License Plates
A Vermont New Car or Used Car Dealer registration includes 3 dealer plates in its $603 yearly fee. The other 10 types' fees and plate counts are in the cost table. Extra plates follow your sales volume, from none under 20 sales a year up to 57 extra at 1,500 or more.
Dealer tags let you drive your inventory. The Dealer and immediate family living in the same household can also use a dealer-plated vehicle for private pleasure (23 V.S.A. § 454). For a corporation or partnership, that means only the principal officers or partners listed on the application and actively running it. Directors, stockholders, and silent partners are excluded.
Other plate rules:
- A prospective buyer can drive a vehicle for up to 3 days; a disabled customer's loaner is capped at 7 days
- Off-site display at a fair or show is allowed for up to 14 consecutive days, with 2 days' notice to the Commissioner. No sales at that location
- A newly acquired vehicle can run on dealer plates for up to 15 days before it needs a Vermont inspection sticker
- Temporary plates cost $6 each and are valid for 60 days after a sale
- Loaning plates or vehicles to anyone else is prohibited; funeral and parade use is free
Submit your Dealer License Application (VD-008)
You apply to the Vermont DMV on paper: the Application for Dealer Registration (VD-008) is a mail-in PDF, and there is no online application. The fee is $603 a year for a New Car or Used Car Dealer, or $1,206 for 2 years, and every type's fee is under costs.
The application lists every partner or corporate officer, with dates of birth and driver's license numbers. The DMV's New Dealer Checklist (VD-024) lists every form to send with it.
Pass the Field Inspector Review
A Vermont Dealer License application is reviewed after you send it in, not before. The DMV assigns you a regional Field Inspector, who reviews and, in the form's own word, “trains” the applicant. Your bond is submitted after that approval, and the DMV issues the registration once the bond is on file.
Dealer License Cost
A Vermont New Car or Used Car Dealer registration costs $603 a year, or $1,206 for 2 years. That fee is higher than most states. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| New Car, Used Car, Auction, Finance Car, or Zero-Emission Manufacturer registrationIncludes 3 dealer plates | $603 a year$1,206 for 2 years |
| Farm Equipment Dealer registrationIncludes 2 dealer plates | $94 a year$188 for 2 years |
| Motorized Highway Building Equipment Dealer registrationIncludes 2 dealer plates | $148 a year$296 for 2 years |
| Motorcycle/Motor-Driven Cycle Dealer registrationIncludes 3 dealer plates | $75 a year$150 for 2 years |
| Trailer Dealer registrationIncludes 3 dealer plates | $148 a year$296 for 2 years |
| ATV Dealer registrationIncludes 1 dealer plate | $62 a year$124 for 2 years |
| Motorboat Dealer registrationIncludes 1 dealer plate | $42 a year$84 for 2 years |
| Snowmobile Dealer registrationIncludes 1 dealer plate | $55 a year$110 for 2 years |
| Additional dealer plates | $66 each, after the free plates |
| Temporary plates | $6 each, valid 60 days |
| Dealer Bond | $350 a year, $35,000 new-applicant bond, credit check required$200 to $300 a year at the $20,000 to $30,000 tiers |
| Liability insurance | For the vehicles on your dealer plates, priced by your agent |
| Credit report | From a credit bureau of your choosing, at its price |
| Reinstatement after a suspension | $30 |
Dealer License Renewal
A Vermont Dealer License is valid for 1 year from the first day of the month it was issued (23 V.S.A. § 452). The Commissioner may renew it for 2 years at double the fee. Renewal uses the same VD-008 form and fee; the credit report and background forms are not required again.
A New Car or Used Car Dealer renews only after selling at least 12 cars or trucks in the past year, or 24 in 2 years. Vehicles scrapped, dismantled, or destroyed don't count, and the Commissioner audits your dealer records at renewal. Finance Car and Auction Dealers are exempt from the sales minimum.
Common Questions
Can you get a Vermont Dealer License with a felony?
A Vermont Dealer License is barred for 10 years after a conviction for extortion, forgery, fraud, larceny, or embezzlement (23 V.S.A. § 450a). The statute names no other crime, and it draws no felony-or-misdemeanor line. The 10 years run from the conviction or your release from prison, whichever is later. An expunged or sealed record doesn't count.
Vermont's sources disagree on whether the bar reaches Finance and Auction Dealers, so ask DMV if you hold one of those.
Can you get a Dealer License in Vermont without a lot?
Not on the New Car or Used Car Dealer License. Vermont requires a building of at least 1,200 square feet used primarily for the dealership. Finance Car, Auction, ATV, Motorboat, and Snowmobile Dealers are exempt from the building-size rule. Every applicant still certifies they own or lease the dealership's building. Details under Office.
How many cars can you sell in Vermont without a Dealer License?
Vermont requires a dealer registration once you have sold 12 cars or trucks in the past year, or 24 in the past 2 years. Up to 11 in a year needs no license (23 V.S.A. § 4, § 473). Scrapped, dismantled, or destroyed vehicles don't count. Motorcycles, trailers, snowmobiles, ATVs, and boats: 1 sale.
Do I need to sell 12 cars a year to get a Vermont Dealer License?
No. The 12-vehicle count is a renewal rule for New Car and Used Car Dealers: 12 in the past year or 24 in 2 years to renew. A first-time applicant qualifies on a reasonable estimate of expected sales that meets that threshold (23 V.S.A. § 473). Finance Car and Auction Dealers are exempt.
Does Vermont require a dealer class or exam?
No. Vermont has no pre-license class and no exam for any of its 12 Dealer License types. The DMV's approval standard is documents plus character. It checks the 5 named crimes, consumer-protection judgments, your credit report, and the signed background forms.
Do salespeople need a license in Vermont?
No. Vermont has no salesperson license at all; every one of the 12 types on VD-008 is a business registration, not a personal credential. The application lists the owners, partners, and corporate officers only.
Do I need a business bank account?
No. No Vermont statute, rule, or DMV form asks for a business bank account or an account number. VD-008 asks for a Federal ID Number and a Vermont Tax ID Number, not a bank.
How long does a Vermont Dealer License take?
No Vermont statute or rule sets a deadline for the Commissioner to decide, and the DMV publishes no typical processing time. After you mail VD-008, a regional Field Inspector reviews your application; the bond is collected after that approval, and then the registration is issued.
Support
The Vermont Department of Motor Vehicles issues every dealer registration on this page through its Dealer Unit. Its regional Field Inspectors review new applications.
| Contact | Detail |
|---|---|
| Department | Vermont Agency of Transportation, Department of Motor Vehicles, Dealer Unit |
| Phone | (802) 828-2038 Dealer Unit(802) 828-2000 main DMV(888) 99-VERMONT toll-free |
| Fax | (802) 828-1110 Dealer Services |
| Hours | 7:45 a.m. to 4:00 p.m., Monday to FridayOpens 8:45 a.m. the third Wednesday of each month |
| Address | 120 State StreetMontpelier, VT 05603-0001 |
Additional sources (12)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- 23 V.S.A. Chapter 7, Subchapter 4, §§ 450–497 — the dealer registration law: eligibility, the certificate, the tiered bond, fees, plates, expiration, and revocation
- 23 V.S.A. § 800, financial responsibility — why insurance is required: the auto liability minimums that apply to the vehicles on your dealer plates
- 23 V.S.A. § 452, expiration of registrations — the 1-year term and the Commissioner's option to renew for 2 years
- 23 V.S.A. § 457, temporary plates — the $6 temporary plate fee
- 23 V.S.A. § 462, cancellation, revocation, and suspension — the hearing before the Commissioner and the $30 reinstatement fee
- 1 V.S.A. § 128, the definition of “person” — why an LLC qualifies: “person” includes any “other legal entity” across Vermont law
- 13 V.S.A. § 7602, eligibility for sealing — the 7-year and 3-year waits after a sentence is completed
- 13 V.S.A. § 7606, effect of expungement — a license application may ask only about records that have not been expunged
- 13 V.S.A. § 7041, deferred sentence — a completed deferred sentence is struck and expunged
- 15 V.S.A. § 795, child support good standing — the signed statement on VD-008
- Vermont Dealer Licensing Rule, 14-050 Code Vt. R. 14-050-050-X (Cornell LII copy) — the office, hours, credit-report, and renewal rules; Vermont hosts the official text only on a paid service
- DMV Administrative Rules index — where the state points to the official rule text
