State of Vermont Motor Vehicle Dealer Bond

The Vermont Motor Vehicle Dealer Bond starts at $200 plus shipping costs and fees. Fill out the form to buy your bond instantly!
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Bond Terms

The Vermont Motor Vehicle Dealer Bond starts at $200 plus shipping costs and fees. Fill out the form to buy your bond instantly!
Bond Name
State of Vermont Motor Vehicle Dealer Bond
Starts at $200
Bond Amount
State of Vermont

What is the Vermont Motor Vehicle Dealer Bond

The Vermont Motor Vehicle Dealer Bond (commonly referred to as an MVD, DMV Dealer, or Auto Dealer Bond) is a surety bond required by the Vermont Department of Motor Vehicles (DMV) as part of the certification process for all individuals and businesses that sell or deal in motor vehicles within the state.

This surety bond involves three parties: the principal (the motor vehicle dealer), the obligee (Vermont DMV), and the surety company. The surety assures the obligee that any authorized work performed by the principal complies with all Vermont state laws and regulations.

If the principal fails to meet their obligations or incurs damages, the injured party may file a claim against the principal’s bond. If the surety company finds the claim valid after investigating it,  the surety will compensate the affected party up to the full amount of the bond. Fraudulent acts, untimely payments to vehicle sellers, and illegal sales practices all constitute potential claims, to name a few.

A bond differs from an insurance policy in that the principal is responsible for paying back the surety company. It should be noted that the state requires this bond for certification, but it protects the state and the public, not the motor vehicle dealer.

Who has to get this bond?

To register as a motor vehicle dealer, applicants must post a VT MVD Bond

Vermont statutes define an auto dealer as any individual, partnership, or corporation involved in purchasing, selling, or trading new or pre-owned motor vehicles. Prior to selling vehicles within the state, auto dealers are required to obtain a license from the Commissioner of Motor Vehicles.

How much does a Vermont Motor Vehicle Dealer Bond cost?

The number of vehicles sold annually determines the amount required for the Vermont Auto Dealer Bond. And your bond amount will, in turn, determine the cost of your bond. 

In general, the bond amount ranges from $20,000 to $35,000.

Dealers selling fewer than 25 vehicles per year must obtain a surety bond of $20,000, while those who sell between 25-100 vehicles must have a bond of $25,000.

For dealers selling between 101 and 250 vehicles, a bond of $30,000 is required, and for those who sell more than 250, a bond of $35,000 is required. All new auto dealers are required to obtain a bond of $35,000. 

Before applying for a bond, verify the required bond amount with the obligee. The dealers' bond limits may also decrease based on their annual sales volume.

Your premium rate (the percentage of the bond amount you will pay for your bond) is determined by your credit score, industry experience, and history. It is important to note that the soft credit check required to obtain your free bond quote will not affect your credit score.

If you have excellent credit, your premium could be as low as 1% of the bond amount. Even if you have nonstandard credit, we encourage you to apply for your free bond quote. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.

Obligee Information 

The Vermont Department of Motor Vehicles is the obligee, or entity that requires a Motor Vehicle Dealer Bond. The following is their contact information:

Vermont Department of Motor Vehicles
Agency of Transportation

120 State Street
Montpelier, Vermont 05603

Phone: 802-828-2038

How to get your Vermont DMV Dealer Bond

It is quick, easy, and free to obtain your Vermont Motor Vehicle Dealer Bond with EZ Surety bonds. Simply fill out our quick online application and one of our friendly surety experts will contact you within 24 hours regarding your free quote.

We're here to help. If you have any concerns, feel free to contact us through email at or call us at 1-800-361-1720.

Frequently Asked Questions

How to apply for a Vermont Motor Vehicle Dealer License

Vermont state law requires a motor vehicle dealer certificate in order to operate legally. The steps are as follows:

  1. Determine your certification type,
  2. Establish your location,
  3. Acquire Zoning Compliance Certification,
  4. Complete a Dealer License Background & Authority to Release form,
  5. Purchase liability insurance,
  6. Get a Vermont Auto Dealer Bond,
  7. Complete the Dealer Registration Application,
  8. Submit all requirements to the obligee,
  9. Obtain your dealer plates (the first three are free),
  10. Pay the $503 licensing fee (new and used motor vehicle dealers), plus $55 for extra dealer plates (as of 2023).

The motor vehicle dealer certificate is typically valid for 12 months from the first day of the month it was issued. 

How much is a Vermont Motor Vehicle Dealer Bond?

The cost of a VT Auto Dealer Bond is determined by the bond amount and other factors such as your credit score and experience. The bond amount can range from $20,000 to $35,000. Fortunately, you only have to pay a small percentage of the full amount in order to obtain your bond.

With an optimal credit score, you could get your bond starting as low as 1% of the bond amount. We offer competitive quotes regardless of the applicant's credit rating. Simply apply on our website today and we’ll contact you within 24 hours regarding your free quote.

After I purchase my Vermont Motor Vehicle Dealer Bond, what do I do?

After you purchase the bond, we will mail the original document to you. As a registration requirement, the official bond form and power of attorney must be mailed to the obligee. Every obligee has their own unique filing requirement, so be sure to confirm the filing requirements of your obligee before doing anything with your bond.

How to Know if You Need a Surety Bond

You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.

Visit to browse hundreds of bonds by state, type, or industry.

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