Vermont Motor Vehicle Dealer Bond

1. Apply for Your Vermont Motor Vehicle Dealer Bond

You can purchase your new bond in three easy steps. To begin, complete the online application. This step takes only a few minutes of your time, and our bond experts are available to answer your questions if you need assistance.

Pete planned to open a dealership in Vermont and contacted us for a surety bond. He was eager to complete the licensing process quickly, so he appreciated our expedited bond process. After applying online and reviewing his instant quote, he paid the premium online and got his bond without delay.

2. Review Your Motor Vehicle Dealer Bond Quote

We provide instant bond quotes to our customers, so you will not wait long to learn about the cost of your Vermont motor vehicle dealer bond. If your application is complex and requires additional review, your quote will be available within 48 hours.

3. Pay the Bond Premium Online

The last step in our quick process is to pay your bond premium. We accept online payments for your convenience. To ensure your bond is delivered quickly, we will email the document to you. We can also mail it, if requested. 

Our bond experts are available to assist you as needed. If you have questions, please contact us or call us at (877) 514-5146 for personalized assistance from our team.

The motor vehicle dealer bond requirement in Vermont is established by 23 V.S.A. § 453 (g), and the authority is the Vermont Department of Motor Vehicles. Dealers may choose between a 2-year bond or a continuous bond. The obligee is the State of Vermont.

The bond requirement for new motor vehicle dealerships is $35,000. At renewal, the bond requirement is based on the dealer’s prior one or two years of sales, depending on the dealer’s registration. Bond amounts for established dealers range from $20,000 to $35,000.

The dealer is responsible for maintaining the bond. To maintain the bond, the dealer must make the annual premium payment to the surety company. Our bond experts are available to answer your questions about the state’s bond requirements.

Maintaining your Vermont motor vehicle dealer bond is a licensing requirement. A dealer license may be suspended if the bond is canceled or not renewed and is not replaced with a new bond. Regardless of whether you set up a continuous bond or a 2-year bond, the premium payment is due annually.

We actively assist our customers with the maintenance of their bonds. Prior to each premium payment due date and renewal period, we will be in touch with instructions.

To make a claim against your motor vehicle dealership in Vermont, the claimant must file the claim directly with the surety company. An investigation will be completed to substantiate the claim. If the claim cannot be substantiated, it is denied. 

The claimant will be compensated if the claim is verified. The compensation cannot exceed the bond’s penal sum. In addition, the aggregate liability against the bond cannot exceed its sum during a registration period. The dealer must reimburse the surety for the amount of the claim.

Dealer license applications and renewals are processed by the Vermont Department of Motor Vehicles. We can help you learn how to get a Vermont dealer license and assist with your bond. To apply for a Vermont motor vehicle dealer license, provide the required items to the DMV:

• Dealer Registration application: Surety bond or continual surety bond
• 1,200-square-foot building (not required for snowmobile, ATV and boat dealers)
• Zoning compliance
• If the building is leased, a copy of the lease agreement with at least a 12-month term
• Proof of insurance
• Franchise agreement

For additional information and to submit the motor vehicle dealer licensing documentation, contact:

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