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Vermont Motor Vehicle Dealer Bond

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How much does an auto dealer bond cost in Vermont?

Vermont car dealer surety bonds are required by the Vermont Commissioner of Motor Vehicles. The required bond amount depends on the number of vehicles the principal sold in the two years prior to renewing their surety bond. The bond amounts for dealers is as follows:

  • New Applicant or 251+ vehicles sold = $35,000 bond
  • 101-250 vehicles sold = $30,000 bond
  • 25-100 vehicles sold = $25,000 bond
  • Fewer than 25 vehicles sold = $20,000 bond

Don’t let poor credit stop you from getting the bond you need! SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of applicants.

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

Why do I need this bond?

Vermont motor vehicle bonds guarantee that motor vehicle dealers & used motor vehicle dealers comply with the terms listed in 23 V.S.A. Chapters 7 and 21 as well as 32 V.S.A. Chapter 219 of the Vermont Statutes Annotated. Specifically, this bond prevents fraud and fraudulent representation at the hands of the principal.

Looking for information on getting a bonded title for a vehicle in Vermont? Visit our vehicle ownership title bond page to find out why these bonds are required, how much they cost, and how to get yours today.

What’s the fine print?

This bond will be continuously effective for the pending registration year as well as the year following. The surety can choose to cancel the bond at any time by filing written notice of such cancellation with the vehicle dealer and the Commissioner of Motor Vehicles. If the applicant was not previously registered as a motor vehicle dealer in the year prior to application, he or she must post a bond in the amount of $35,000.

How to become a motor vehicle dealer in Vermont

A vehicle dealer in the state of Vermont is defined as a person, partnership, or corporation who is engaged in the business of buying, selling, or exchanging new or used motor vehicles, as well as other types of motor vehicle dealers. These professionals must obtain a license issued by the Commissioner. Applicants must do the following to qualify for a license:

  • submit all required forms of the application
  • pay all appropriate licensing fees
  • provide proof of a sales tax license
  • post the proper surety bond
  • furnish a credit report as well as a background check

More licensing information can be accessed from the Additional Resources section of this page.

Additional Resources

Department of Motor Vehicles: Dealer Services

Vermont Statutes - Title 23: Motor Vehicles. Chapter 7: Registration

New Vermont Dealer Information Packet

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