Getting a used car dealer license in Vermont

In Vermont, used-car dealers are licensed by Vermont DMV Dealer Services.

Before your first retail sale you’ll need a $35,000 surety bond, a pre-licensing course and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked · details re-checked against official sources

At a glance

License
Used car dealer registration dmv.vermont.gov (source, opens in a new tab)
Issued by
Vermont DMV Dealer Services dmv.vermont.gov (source, opens in a new tab)
Surety bond
New applicant $35,000. Later sales-based tiers: under25 $20,000; 25–100 $25,000; 101–250 $30,000; 251+ $35,000. dmv.vermont.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Application refers to investigator approval/training before bond submission. dmv.vermont.gov (source, opens in a new tab)
Official fees
$603 one year/$1,206 two years; three plates included; additional allocation by sales, paid additional plates $66. dmv.vermont.gov (source, opens in a new tab)
Renewal
One/two-year registration options; $603/$1,206; VD007 renewal, audit card, bond/insurance and lease. dmv.vermont.gov (source, opens in a new tab)
Site inspection
Investigator approval/training required before bond submission. dmv.vermont.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer registration

    Vermont's DMV Dealer Services registers used car dealers. New car, auction, finance car, motorcycle and trailer dealers register differently. dmv.vermont.gov › dealer-services (source, opens in a new tab) dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab)

  2. Find a building that qualifies

    You need a building of at least 1,200 sq ft used primarily for the dealership, with room for your records, owned or leased through the end of the registration year. Everyone involved must comply with local zoning, with local approval. legislature.vermont.gov › 00450a (source, opens in a new tab) dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab)

  3. Plan your hours

    You must be open at least 146 days a year, six hours a day, with at least four of those hours between 6 a.m. and 6 p.m. The application asks for your schedule. legislature.vermont.gov › 00450a (source, opens in a new tab) dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab)

  4. Apply

    Submit the application (VD008) with the checklist (VD024), your federal and state tax IDs, owner ID and liability insurance. Some financial-crime and dealer-law histories make an applicant ineligible. dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab) dmv.vermont.gov › dealer-services (source, opens in a new tab)

  5. Investigator approval and training

    A DMV investigator approves you, with training, before you submit the bond. dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab)

  6. Bond and fees

    New applicants need the top-tier $35,000 bond, on form VD114 or the continual bond VD114a; don't choose a lower tier, and make sure the bond covers the required period. Registration is $603 for one year or $1,206 for two, including three plates; additional plates are $66. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. dmv.vermont.gov › VD-114-Motor_Vehicle_Dealer_Bond.pdf (source, opens in a new tab) dmv.vermont.gov › dealer-services (source, opens in a new tab)

  7. Keep it current

    Renew for one or two years ($603 or $1,206) on form VD007, with the audit card, bond, insurance and lease. After the first registration, the bond tier follows your sales: $20,000 under 25 vehicles up to $35,000 at 251 or more. dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab) dmv.vermont.gov › dealer-renewal (source, opens in a new tab)

The location

Office
A building of at least 1,200 sq ft used primarily for the dealership, with adequate facilities for the required records; you own the property or lease it through the end of the registration year. Open at least 146 days a year, six hours a day, with at least four of those hours between 6 a.m. and 6 p.m. legislature.vermont.gov (source, opens in a new tab)
Zoning and home-based lots
Everyone involved must comply with local zoning, and you need approval from the local authority. dmv.vermont.gov (source, opens in a new tab)

Before you apply

Federal/state tax IDs, owner IDs and liability insurance; specified financial-crime/dealer-law eligibility restrictions. dmv.vermont.gov (source, opens in a new tab)

Forms

VD008 application; VD024 checklist; VD114 bond or VD114a continual bond. Official forms directory linked. dmv.vermont.gov (source, opens in a new tab)

Get the current versions from dmv.vermont.gov; we don’t host copies.

Not the license you’re after?

New car, auction, finance car, motorcycle and trailer registrations differ. dmv.vermont.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: 1,200-sq-ft building plus maximum-tier bond for new applicants.

Easy mistakes:

Questions

How much does a Vermont dealer registration cost?

$603 for one year or $1,206 for two, including three plates. The premium on the $35,000 bond and a 1,200 sq ft building cost more. dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab) legislature.vermont.gov › 00453 (source, opens in a new tab)

How big must the building be?

At least 1,200 sq ft, used primarily for the dealership. legislature.vermont.gov › 00450a (source, opens in a new tab) dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab)

What hours must I keep?

At least 146 days a year, six hours a day, with at least four hours between 6 a.m. and 6 p.m. legislature.vermont.gov › 00450a (source, opens in a new tab) dmv.vermont.gov › VD-008-Dealer_Application.pdf (source, opens in a new tab)

Sources

Not affiliated with the Vermont DMV. Not legal advice. Requirements change; always confirm with the state.