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Vermont Auto Dealer License: Step-by-Step Guide

  • Learn how to get licensed in a few easy steps
  • Understand the licensing requirements for your state
  • Learn how to stay compliant
  • Get a free license bond quote in minutes
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Auto Dealer Licenses in Vermont are handled by the Vermont Agency of Transportation, Enforcement Safety Division. There is a single license type for all new and used auto dealers.

Determine Which Type of License You Need

Vermont has two basic types of auto dealer licenses:

  • New Auto Dealer License
  • Used Auto Dealer License

Obtain a Permanent Business Location

Vermont has several requirements before you submit your application:

  • Your dealership must be open at least 104 days a year
  • You must own (in which case you must provide a deed) or lease (for a minimum period of a year) a property of at least 1,200 square feet devoted primarily to selling vehicles, though this does not apply to ATV, snowmobile, or boat dealers
  • You must sell at least 12 vehicles a year
  • Your location must comply with all local zoning requirements; confirmation of zoning compliance from the town will need to be included in your application

Fill Out Your Application

Once you meet all of these pre-application criteria, you can download and fill out the online application.

Compile the Required Documents

You must submit the following documents along with your application:

  • Proof that you do not have a criminal record that would violate the terms of 23 V.S.A. § 800
  • New car dealers will have to provide a valid sales or service agreement
  • New Auto Dealers must supply a franchise agreement
  • Proof of insurance for your dealer plates

Obtain Your Auto Dealer Bond

All Vermont auto dealers must be bonded. The amount will vary depending on how many vehicles you’ve sold in the previous two years, but all new dealers have a fixed bond amount of $35,000. The form is available online.

Bond Amount Required:

  • Less than 25 vehicles: $20,000
  • 25 to 100 vehicles: $25,000
  • 101 to 250 vehicles: $30,000
  • 251 or more vehicles: $35,000
  • All new dealers: $35,000

Submit Your Dealer License Application

Mail your completed application to:

Vermont Department of Motor Vehicles

120 State Street

Montpelier, Vermont 05603-000

Fees: After your application has been approved, the final step is to pay the $375 license fee. This fee comes with 3 dealer license plates. All additional plates can be purchased at $40 a plate.

Note: Applications should be approved within six weeks.




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