Vermont Auto Dealer License Guide

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
How to get your Auto Dealer License

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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

Auto Dealer Insurance

There are several types of insurance coverages that are recommended for auto dealers, but the recommended coverage will vary based on your business and personal needs.


Obtain Your Auto Dealer Bond

The cost of an auto dealer bond is a small percentage of the total bond amount. The bond cost varies depending on your financial strength, e.g. personal credit. You can also take a look at our most frequently asked surety bond questions.

  • Fill out our online application form to obtain a free bond quote for your auto dealer license. It takes 5 minutes and you will be able to lock your rate for the next 90 days (in case you want to purchase the 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
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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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