How to get a dealer license in Vermont

Vermont law bars anyone from engaging in the business of selling or exchanging vehicles without a dealer registration (23 V.S.A. § 473). For cars and trucks, being 'engaged in the business' means having sold or exchanged at least 12 cars or motor trucks in the previous year, or 24 in the previous two years (23 V.S.A. § 4(8)). This is also the minimum to register: a first-time applicant qualifies if a reasonable estimate of expected sales meets it.

• Used Car Dealer (UCD): Dealers who sell used cars and trucks. This is the main registration covered here: $603 for one year or $1,206 for two years.
• New Car Dealer (NCD): Dealers with a written contract from a manufacturer or distributor to sell new vehicles. $603 a year, with the same bond scale as used car dealers.
• Auction Dealer (ACD): Businesses that sell motor vehicles at public auction. $603 a year.
• Finance Car Dealer (FCD): Finance companies that make wholesale loans to registered dealers or buy their retail sales contracts. The registration covers moving and showing repossessed vehicles. $603 a year.
• Motorcycle/Motor-Driven Cycle Dealer (DLM): Dealers in motorcycles and motor-driven cycles. $75 a year.
• Trailer Dealer (DLT): Dealers in trailers, semi-trailers and trailer coaches. $148 a year.
• Farm Equipment Dealer (DLF): Dealers in farm tractors and other self-propelled farm implements. $94 a year.
• Highway Building Equipment Dealer (DLH): Dealers in highway building equipment. $148 a year.
• All-Terrain Vehicle, Snowmobile and Motorboat Dealers: Dealers in ATVs ($62 a year), snowmobiles ($55 a year) or motorboats ($42 a year).
• Non-Franchised Zero-Emission Manufacturer (EV): Manufacturers of only zero-emission vehicles that sell or lease directly to consumers, not through franchised dealers. $603 a year.

Surety bond. New applicants who were not registered as a dealer the year before post $35,000. After that, the amount depends on the prior year's sales (or the prior two years' for a two-year registration): under 25 vehicles $20,000; 25 to 100 vehicles $25,000; 101 to 250 vehicles $30,000; 251 or more $35,000 (form VD-114). A letter of credit or certificate of deposit can be used instead of a surety bond. It must stay in effect for the registration year plus one more year, and it covers fees and taxes the dealer collects but does not send to DMV (23 V.S.A. § 453(g)).

Insurance. Car, truck and motorcycle dealers must show proof of insurance under 23 V.S.A. § 800 when they apply and at each renewal: at least $25,000 for one person and $50,000 for two or more people killed or injured, and $10,000 for property damage in any one crash. The New Dealer Checklist (VD-024) also requires an active insurance policy for the dealer plates.

Place of business. You must own the property or hold a lease that runs at least to the end of the registration year. The site needs a building of at least 1,200 square feet used mainly for the dealership, with a heated dealer office that is separate from any unrelated business, has room to serve the public, and holds your records. The dealer license must be displayed in the office, and a multi-use building needs an entrance the public can easily find. An outside display area must be right near the building. The local zoning official certifies zoning compliance on form VD-165. Car and truck dealers must be open at least 146 days a year, and form VD-008 says six hours a day with at least four hours between 6 a.m. and 6 p.m. A lease longer than one year must be recorded with the town (23 V.S.A. § 450a; forms VD-008, VD-024 and VD-165).

Background check. Each owner or corporate officer completes the Dealer License Background and Authority to Release form (VD-164) and a notarized Request for Criminal Record Check (DMV-108), which checks Vermont (VCIC) and national (NCIC) records, and provides a full credit report. You are not eligible if, in the 10 years before applying, you were convicted or jailed for extortion, forgery, fraud, larceny or embezzlement, or if you have a record of willful dealer law violations or unpaid consumer protection judgments (23 V.S.A. § 450a). The application also asks you to declare your standing on child support, Vermont taxes and court judgments.

Pre-license education. Vermont does not require a pre-license course for this license.

1. Register your business with the Vermont Secretary of State and have your federal and Vermont tax ID numbers ready for the application.
2. Buy or lease a site with a building of at least 1,200 square feet and an outside display area. The lease must run through the registration year, and a lease over one year must be recorded with the town.
3. Have the local zoning official sign the Vermont Zoning Compliance Certification (VD-165).
4. Have each owner or corporate officer complete form VD-164 and a notarized Request for Criminal Record Check (DMV-108), and get a full credit report for each.
5. Get proof of insurance under 23 V.S.A. § 800 and an active insurance policy for the dealer plates.
6. Call Dealer Services at 802-828-2038 to make sure your packet is complete, then mail the Application for Dealer Registration (VD-008) with a check payable to VT DMV to 120 State Street, Montpelier, VT 05603.
7. Post a $35,000 surety bond on form VD-114, or a letter of credit or certificate of deposit, after approval and training by a DMV investigator.

Official forms:

• Application for Dealer Registration (VD-008)
• New Dealer Checklist (VD-024)
• Motor Vehicle Dealer Bond (VD-114)
• Motor Vehicle Dealer Continual Bond (VD-114a)
• Dealer License Background and Authority to Release (VD-164)
• Vermont Zoning Compliance Certification (VD-165)
• Request for Criminal Record Check (DMV-108)
• Renewal for Dealer Registration (VD-007)

No. Vermont requires a building of at least 1,200 square feet used mainly for the dealership, plus an outside display area near the building. We found no wholesale-only dealer registration among the dealer types on form VD-008.

Dealer-only auctions require a dealer license to buy, and AuctionACCESS (auctionaccess.com), used at over 400 auction marketplaces and online channels in North America, limits membership to licensed vehicle dealers and their authorized representatives. Vermont dealers may also consign vehicles to a registered auction dealer or licensed auctioneer for public or private wholesale auction (23 V.S.A. § 451(c)).

A dealer registration expires one year from the first day of the month it was issued, and DMV may renew it for two years (23 V.S.A. § 452). Renew on form VD-007 with proof of insurance and a bond, letter of credit or certificate of deposit sized to your prior sales. A two-year registration costs twice the one-year fee.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Vermont Department of Motor Vehicles, Dealer Services before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Vermont.