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Vermont
Motor Vehicle Dealer Bond

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Coverage Amount: $20,000 - $35,000
Term Length: 2 years
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Vermont Vehicle Dealer Bond Overview

  • Purpose: To guarantee dealerships follow all state laws and regulations 
  • Who Needs It: All registered vehicle dealers in Vermont
  • Regulating Body: The Vermont Department of Motor Vehicles
  • Bond Amount: $20,000 to $35,000, based on vehicle sales (new licensees need $35,000 coverage)
  • Minimum Price: Starts at 1% of the coverage amount; credit-based

What Is a Vermont Motor Vehicle Dealer Bond?

A Vermont motor vehicle bond ensures that dealers conduct business according to Vermont Statutes. The bond protects buyers from financial harm, malpractice and fraud.

Who Needs a Dealer Bond?

The Vermont Agency of Transportation — Department of Motor Vehicles (DMV) requires all licensed motor vehicle dealers to have a surety bond as a form of financial responsibility.

Bond Coverage Requirements for Vermont Dealerships

If you’re a new motor vehicle dealer, you need a $35,000 surety bond when you apply for your license. Otherwise, Vermont motor vehicle dealer bond coverage requirements are based on the amount of vehicles sold every two years. 

Refer to the chart below to determine the coverage you need.

Coverage RequirementsVehicles Sold During Previous 2 Years
$20,000<25 vehicles
$25,00025-100 vehicles
$30,000101-250 vehicles
$35,000251+ vehicles OR new applicants

How Much Do Motor Vehicle Dealer Bonds Cost in Vermont?

Vermont motor vehicle dealer bond premiums typically cost 1–5% of the bond coverage amount for a two-year term. Rates are based on credit score and sometimes other financial factors. 

For example, if you need a $35,000 bond, premiums start at $468. Or, you can select a multi-year term and save up to 25%. Apply for your bond today!

Bond Type
$20,000Motor Vehicle Dealer BondUnder 25 vehicles sold during previous 2 years
$25,000Motor Vehicle Dealer Bond25-100 vehicles sold during previous 2 years
$30,000Motor Vehicle Dealer Bond101-250 vehicles sold during previous 2 years
$35,000Motor Vehicle Dealer BondNew applicants OR 251 or more vehicles sold during previous 2 years

SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. 

How Does a Vermont Motor Vehicle Dealer Bond Work?

When you get a motor vehicle dealer bond, you enter a three-party agreement.

Bond PartyDescription
1. PrincipalYou, the licensed dealer
2. ObligeeThe Vermont DMV
3. SuretyThe issuing surety provider

As the principal, you agree to follow Vermont manufacturer, distributor and dealership laws. If terms are broken, the surety will pay for valid claims and you are responsible for reimbursing the surety later on. 

Vermont Vehicle Dealer Bond Overview Purpose: To guarantee dealerships follow all state laws and regulations  Who Needs It: All registered vehicle dealers in Vermont Regulating Body: The Vermont Department of Motor Vehicles Bond Amount: $20,000 to $35,000, based on vehicle sales (new licensees need $35,000 coverage) Minimum Price: Starts at 1% of the coverage amount; credit-based

How Do I Get a Vehicle Dealer Bond?

Follow these four simple steps to get your bond:

  1. Determine the coverage amount you need
  2. Apply for a bond quote
  3. Complete the bond purchase online
  4. File your bond with the DMV

How Fast Can I Get My Bond?

You’ll get a quote within one business day or less. The DMV requires the physical bond form to be filed just select your shipping method at checkout. We offer overnight, two-day and three-day shipping. 

How Do I File My Bond?

After receiving your bond, file it with the DMV by mailing it to the following address:

Vermont Department of Motor Vehicles

120 State Street

Montpelier, VT 05603-0001

Can I Get Bonded With Bad Credit? 

We approve 99% of applicants. However, if you’re concerned about qualifying, read about our Bad Credit Options and Premium Financing.

How Do I Renew My Bond?

Vermont motor vehicle dealer bonds expire every two years. You’ll receive renewal reminders starting 90 days before the expiration date. Just pay the renewal premium and file your renewed bond.

How Do I Update My Bond Information?

If you need to update simple information on your bond form, a SuretyBonds.com representative will help issue a bond rider.

Larger updates may require a new bond form. Call 1(800)-308-4358 to speak with an expert!

How to Get a Vehicle Dealer License in Vermont

New and used motor vehicle dealers need a dealer license to conduct business. To become a vehicle dealer in Vermont complete the following steps: 

  1. Complete a Dealer Application*
  2. Complete background and authority release forms for each owner/corporate officer
  3. Provide a full credit report
  4. Complete a local zoning compliance form
  5. Provide proof of deed or lease for the property
  6. Get an active insurance policy for dealer plates
  7. Purchase a surety bond
  8. Pay applicable fees

*Note: Each owner must sign a copy of the third page of the application. 

Read permit and license information and dealer services for more details. Direct any questions to the Vermont Dealer Unit by calling 802-828-2038.

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