Dealer Licensing in Vermont

According to Vermont law, anyone involved in the business of buying, selling, or exchanging new or used vehicles is required to have a Vermont Dealer's License. Or in more detailed terms, to qualify for a dealer's license you must:

  • Have a dealership that's open for a minimum of 146 days during a calendar year.
  • Own real estate at your place of business or possess a lease that includes a structure that's at least 1,200 sq ft in size and used mainly for selling vehicles.
  • Sell at least 12 vehicles per year that are owned but not registered by you.
  • Sell at least 12 vehicles the year before that have been leased or rented.

If you fit these criteria, then you must contact the Department of Motor Vehicles (DMV) at (802) 828-2038 for a Vermont Dealer's License application. This form cannot be downloaded. For more details on becoming a dealer please see the New Vermont Dealer Information Packet.

Approval Process

After submitting your Vermont Dealer's License application, the time frame to process the application is mainly contingent upon local hearings regarding your application and whether or not to approve it.

During this process, you will need either the local zoning administrator or the town clerk to certify to the board that your dealership complies with all local zoning regulations.

If Approved

If your application passes and you pay the $503 license fee, the DMV will issue you 3 dealer license plates. Extra dealer plates can be ordered for $55 per set.

Keep in mind that in addition to the license fee, you will also need to provide to the DMV a surety bond, letter of credit, or certificate of deposit. The fee will vary depending on how many vehicles you sold the year before. The full legal explanation of this can be found in Title 23, Chapter 7, Subtext 453 of the Vermont Statutes.

Dealer Licenses and Fees

The below licensing fees are due annually:

  • New or used car dealers and auction dealers: $503
  • Motorcycle and moped dealers: $62
  • Trailer dealers: $123
  • Highway-building equipment dealers: $123
  • Farm equipment dealers: $78
  • ATV dealers: $62
  • Snowmobile dealers: $55
  • Motorboat dealers: $42

For more information about dealer license processing, contact:

  • Enforcement and Safety Division
  • 120 State St
  • Montpelier, VT 05603
  • (802) 828-2038 BBB Business Review