VT motor vehicle dealer bonds.
From $100.

Vermont requires every motor vehicle dealer to file a surety bond with the Department of Motor Vehicles before registering as a dealer, under 23 V.S.A. § 453(g). The amount runs $20,000 to $35,000 based on your prior-year sales — your price is 1% of the bond amount, $100 minimum, with one soft credit pull.

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Required for your VT dealer registration — new applicants and renewals through the DMV

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Amount runs $20,000 to $35,000 — the Commissioner sets it from your prior-year unit sales

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Soft credit pull only — never affects your score, with your price set at 1% of the bond amount, $100 minimum

A-ratedA.M. Best carriersInstantissued the moment you payFrom $100soft pull only

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How it works

Three steps to registered.

Your dealer registration is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · ONLINE

Apply once, online

Business details, owner information, the bond amount the DMV set, and an effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.

WITHIN 48 HOURS

Reviewed & approved

Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

E-sign & file with the DMV

Pay online and receive the executed bond ready to file with your dealer registration. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

Vermont licenses motor vehicle dealers through the Department of Motor Vehicles, and conditions dealer registration on a surety bond under 23 V.S.A. § 453(g). The bond is a State-and-buyer protection guarantee: it stands behind the registration fees and sales taxes you collect on the vehicles you sell.

It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of Vermont together with vehicle purchasers (the protected parties). If a dealer fails to remit registration fees collected under Title 23 or sales tax collected under 32 V.S.A. chapter 219, the State or a harmed buyer can recover against the bond — the surety's liability is limited to the fees or tax collected and not remitted.

The amount is set by the Commissioner from your prior-year unit sales, generally $20,000 for lower-volume dealers up to $35,000, and can be written as a two-year or continuous bond. It is not insurance for you — if the surety pays a claim, you repay the surety.

23 V.S.A. § 453(g)Under 23 V.S.A. § 453(g), a person may not be registered as a Vermont motor vehicle dealer without filing a surety bond (or letter of credit or certificate of deposit) with the Commissioner of Motor Vehicles, indemnifying the State and motor vehicle purchasers against the dealer's failure to remit registration fees and sales taxes. The amount, set by the Commissioner from prior-year unit sales, generally runs $20,000 to $35,000 — confirm the figure on your DMV notice or application.

You need this bond if you're

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Applying for a VT dealer registration — new, used, wholesale, or motorcycle

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Renewing your dealer registration and your current bond is expiring or non-renewing

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Scaling your sales volume into a higher bond tier the DMV requires

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Moving to Vermont from another state and registering as a dealer here

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →

FAQ

Common questions.

How much is the Vermont motor vehicle dealer bond?Pricing is 1% of the bond amount, with a $100 minimum. The bond amount itself is set by the DMV from your prior-year unit sales — generally $20,000 to $35,000. Enter the figure on your notice and your exact price appears at the application.

What bond amount do I need?It depends on how many units you sold in the prior year, and the Commissioner sets it — generally $20,000 at the low end up to $35,000. New dealers without a sales history are typically placed at the higher end. Send us your DMV notice and we'll confirm the figure.

What does the bond guarantee?That you remit the registration fees and sales taxes you collect on the vehicles you sell. If you fail to and the State or a buyer is harmed, they can claim against the bond — the surety pays up to the amount collected and not remitted, and if the surety pays, you repay the surety.

Is there a credit check?Yes — a quick soft credit check that never affects your score, never a hard inquiry. It's the only extra step beyond the application. Your price is set at 1% of the bond amount, $100 minimum.

When does it renew?Vermont dealer bonds can be written as a two-year or continuous term. We send renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your dealer registration to stay valid.

Related bonds

Other Vermont bonds.

The DMV is waiting on one document.

From $100, short application, e-signed bond in 1–2 business days. Free until issued.

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