How To Sell a Car in Vermont

Selling a motor vehicle in Vermont requires compliance with state requirements governing title transfer, ownership documentation, odometer disclosure, registration, and purchase and use tax. Private-party sellers must properly assign the vehicle title and provide all required documents to the buyer, who then applies for a new title and registration through the Vermont Department of Motor Vehicles (DMV).

What You Need To Know Before Selling a Car in Vermont

Title Law and Ownership Requirements

Under Vermont law, a certificate of title is required to transfer ownership of a motor vehicle, with limited exceptions. As of July 1, 2024, when ownership of any vehicle changes, a new title must be obtained regardless of the vehicle's age. Vehicles that are currently owned and not being sold can remain title-exempt if they were exempt before July 1, 2024; however, once a vehicle is sold to a new owner, the new owner must obtain a title regardless of the vehicle's model year. A registered owner who holds only a Vermont registration for a vehicle model year 2009 or older (without an existing title) can keep that vehicle without a title, but only if ownership does not change. Upon sale to a new owner, a title is required.

Vehicles Exempt From Title Requirements

Vehicles owned by federal, state, or municipal governments, as well as certain classes of motorized vehicles such as off-road motorcycles, may not require titles. Sellers should verify with the Vermont DMV whether their specific vehicle requires a title by providing the vehicle identification number.

Satisfying an Existing Lien

If a lien is recorded on the vehicle title, the lien must be fully satisfied and removed before the sale can be completed. The seller may check the current lien status online by accessing the Vermont myDMV portal using the vehicle's VIN.

When the loan is paid in full, the lienholder must send the title showing the lien as satisfied. The seller may then exchange the satisfied lien title for a clear title by paying the replacement title fee, or may keep the title showing the satisfied lien. If the vehicle is being sold with an active unpaid loan, the seller must contact the lienholder to arrange the transfer of title to the new owner and ensure the lienholder agrees to record a new lien for the buyer.

Inspection and Emissions Testing Requirements

Vermont does not require a private-party seller to obtain a vehicle safety inspection or emissions test before completing a sale. However, the buyer will be required to have the vehicle inspected and pass applicable emissions testing within 15 days of registration if the vehicle falls under the emissions testing program. Inspection is the responsibility of the buyer at the time of registration.

Odometer Disclosure and Mileage Requirements

Federal law requires that all transferors certify the odometer reading at the time of sale. An Odometer Disclosure Statement is required for vehicles model year 2011 or newer. Sellers of vehicles model year 2010 or older, vehicles with a registered weight exceeding 16,000 pounds, or trailers do not need to file a separate odometer disclosure statement if the title assignment is properly completed.

Documents Required To Sell a Car in Vermont

Certificate of Title

The existing certificate of title serves as the primary proof of ownership. The seller must complete the assignment section on the back of the title by entering the following information:

• The buyer's full legal name and complete address
• The date of the sale
• The current odometer reading, if applicable
• The seller's signature, which must be signed exactly as the name appears on the front of the title

If the title lists multiple owners joined by "and," all owners must sign the assignment. If the names are joined by "or," only one owner's signature is required. Vermont law does not require the title assignment to be notarized. The title must not be altered in any way; documents containing correction fluid, erasures, or other alterations will be rejected by the DMV.

Bill of Sale and Odometer Disclosure Statement

The Bill of Sale and Odometer Disclosure Statement (Form VT-005) is a single combined form provided by the Vermont DMV. Although not required by state law for all private sales, many buyers and financing institutions require a bill of sale, and its use is strongly recommended to document the transfer.

The bill of sale section must contain the following minimum information:

• Full legal name and complete address of the buyer
• Full legal name and complete address of the seller
• Date of sale
• Complete vehicle identification: VIN, make, model year, body type, and model or series number
• Purchase price
• Signatures of both seller and buyer

The Odometer Disclosure Statement section requires the seller to certify one of the following:

• The stated odometer reading represents the actual mileage on the vehicle
• The mileage exceeds the mechanical limits of the odometer
• The odometer reading does not represent the actual mileage of the vehicle (discrepancy warning)

The Odometer Disclosure Statement is required for vehicles model year 2011 or newer and is not required for vehicles model year 2010 or older, vehicles with a registered weight exceeding 16,000 pounds, or non-self-propelled vehicles. Both the seller and buyer must sign the form.

Lien Release

If a lien has been satisfied and released, the seller should obtain written confirmation from the lienholder. If the title does not clearly show the lien as released, the seller may use the Lien Release (Form VT-008) to document the release formally.

How To Transfer a Car Title in Vermont

Step 1: Review the Title Before the Sale

Before offering the vehicle for sale, the seller must verify that the title is in the seller's name, is free of alterations, and accurately reflects the vehicle information. The seller should confirm there are no outstanding liens by checking the myDMV portal or contacting the Vermont DMV. If the title has been lost or is damaged, the seller must request a replacement title before proceeding with the sale. A replacement title incurs a $42.00 fee.

Step 2: Complete the Title Assignment

The seller completes the assignment section on the reverse side of the title by entering the buyer's full legal name, complete address, sale date, and odometer reading if applicable. The seller then signs the assignment using the exact signature format as it appears on the front of the title. If joint owners are listed, both must sign if joined by "and," or one may sign if joined by "or."

Step 3: Prepare the Bill of Sale and Odometer Disclosure

The seller completes the Bill of Sale and Odometer Disclosure Statement (Form VT-005) with all required information for both the buyer and seller. Both parties sign the form. For vehicles model year 2011 or newer, the Odometer Disclosure Statement section must be completed and signed by both parties at the time of transfer. The seller retains a copy and provides a copy to the buyer.

Step 4: Deliver Documents to the Buyer

At the time of sale, the seller delivers the following documents to the buyer:

• The properly assigned original certificate of title
• A signed copy of the bill of sale and odometer disclosure
• Any lien release documents, if applicable

Step 5: Buyer Submits Application for Title and Registration

The buyer must apply for a new title and registration with the Vermont DMV. The buyer completes the Vermont Motor Vehicle Registration, Tax, and Title Application (Form VD-119) and submits it to any Vermont DMV office along with the assigned title, bill of sale, and odometer disclosure statement. The application must be submitted within a reasonable timeframe after purchase; while there is no strict deadline, prompt submission is recommended to prevent liability issues.

The buyer must also pay the applicable purchase and use tax at the time of registration or title application. The tax is calculated as 6% of the purchase price or the J.D. Power clean trade-in value, whichever is greater.

Title Transfer Fee Schedule in Vermont

Title-related fees in Vermont are as follows:

Registration transfer fees range from $20.00 for a replacement registration to $30.00 for a transfer registration, depending on the vehicle classification. Additional local fees may apply in certain jurisdictions.

Sales Tax on Private Vehicle Sales

Under 32 V.S.A. Chapter 219, the purchase and use tax is due at the time of registration and/or title at the rate of 6% of the purchase price or the J.D. Power clean trade-in value, whichever is greater. The buyer pays this tax at registration with the Vermont DMV. The tax is calculated on the net purchase price after allowable credits such as trade-in value are applied. If registering by mail, the buyer must submit a J.D. Power valuation printed within seven days of application. Vermont does not exempt private-party sales from the purchase and use tax, unlike many states that exclude casual sales from general sales tax.

What To Do After Selling Your Car in Vermont

Remove License Plates and License Plate Procedures

The seller is responsible for removing the vehicle's license plates at the time of sale. The plates remain the property of the seller and do not transfer to the new owner. The buyer must obtain new plates at registration. The seller may retain the plates for transfer to another vehicle or surrender them to the Vermont DMV. Plates may be surrendered at any Vermont DMV office or returned by mail to the DMV address listed below.

Notify Insurance Provider

After the sale is completed and the plates are removed, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle or adjust the policy. Continuing insurance on a vehicle no longer owned may result in unnecessary premium charges.

Retain Documentation

The seller should retain copies of all transaction documents, including the bill of sale, odometer disclosure, and any other related paperwork. These documents may be necessary to prove the sale in the event of future liability disputes or if questions arise regarding vehicle ownership.

Contact Information

Vermont Department of Motor Vehicles
120 State Street, Montpelier, Vermont 05603-0001
Phone: (802) 828-2000
Official Website: Vermont DMV