how to get a vermont dealer license

Ready to start selling cars in Vermont? First you’ll need to get your Vermont Car Dealer License. Here are the steps you need to take:

Short on time? Check out our Car Dealer Licensing FAQ.

How to get a Car Dealer License in Vermont

Step #1: Complete Application

Your application package will contain a checklist that will ask you to complete the following:

  • Zoning compliance from the town
  • Lease agreement (if building is being leased)
  • Copy of the Deed (if you own the building)
  • Proof of insurance on dealer plates
  • Franchise agreement
  • Dealer registration application with the following for each application listed:
    • Authority to release information form
    • Background check
    • Credit report
    • Criminal record check
    • Judgment compliance form

The above forms can be found on the Vermont DMV site.

For more information contact the Vermont Department of Motor Vehicles at 802-828-2038.


Step #2: Purchase Vermont Motor Vehicle Dealer Bond

Before you can get issued a Vermont Dealer License and start a dealership, you must purchase a Vermont Motor Vehicle Dealer Bond. This bond protects your customers from fraud or dishonest acts that might occur during a business transaction.


Not sure how to get an Auto Dealer Bond? Use this interactive tool to help you out.


Have bad credit? We can still get you bonded. Check out our bad credit options.

Get a free Vermont Dealer Bond quote

  • New motor vehicle dealers: $35,000 bond
  • Renewing motor vehicle dealer bond amounts are determined by the number of vehicles you sold in the prior year:
    • Less than 25 vehicles $20,000
    • 25 to 100 vehicles $25,000
    • 101 to 250 vehicles $30,000
    • 251 or more vehicles $35,000

You won’t have to pay the full bond amount to get bonded. Instead, you’ll just pay a small portion of the total bond amount. This amount is dependent on your credit score.

Step #3: Submit Paperwork

After completing the above forms and tasks, submit everything to the Vermont Department of Motor Vehicles. 

how to start a car dealership in vermont

Step #4: Wait

Once you submit your Vermont motor vehicle dealer license application all that’s left to do is wait! The approval process can take up to 6 weeks. The time frame is mainly dependent on local hearings regarding your application and whether you should be approved.

Step #5: Pay Fees

If your application is approved, you must pay a $370 licensing fee to receive your Vermont motor vehicle dealer license. This fee covers your dealer license plates.

Dealer license plates are special license plates issued to your dealership that allow your customers to legally test-drive your dealership cars on public streets.

You are automatically issued 3 dealer licensing plates, and then any additional plates are issued based on the number of sales from the prior year. The estimates of additional dealer plates are as follows:

  • Under 20 sales: 0 additional plates
  • 20-49 sales: 1 additional plate
  • 50-99 sales: up to 5 additional plates
  • 100-249 sales: up to 12 additional plates
  • 250-499 sales: up to 17 additional plates
  • 500-749 sales: up to 27 additional plates
  • 750-99 sales: up to 37 additional plates
  • 1,000-1,499 sales: up to 47 additional plates
  • 1,500 or more sales: up to 57 additional plates

For new dealers, additional plates are based on your reasonable estimate of your expected sales.


License Expiration and Renewal

Do you know when your motor vehicle dealer license expires? Check out this awesome infographic.

Vermont motor vehicle dealers must renew their licenses each year. In some cases, the Vermont commissioner may allow dealer registrations to last for two years.

Expiration dates will stagger depending on when the license was issued, but you regardless of your license expiration date, you must renew it by the 15th of the month that it expires.

As a dealer in the state of Vermont, you must sell at least 12 vehicles per year, and your business must be open for a minimum of 104 days during a calendar year.

For more information and help on completing your dealer application journey, check out the

View our FREE EBOOK: “The Ultimate Guide To Car Dealer Licensing”

Related links:

4 Easy Steps To Getting Your Car Dealer License

How Much Does An Auto Dealer Surety Bond Cost?

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