Selling a Car in Vermont
When you’re selling a vehicle in Vermont, there are some requirements that you have to meet. We’ve collected the appropriate information here on these requirements so you can make sure you have a worry-free vehicle sale in the state.
1. Title Information
You can only sell a vehicle in Vermont if you have total ownership of it. In other words, any “lien” (loan) on the vehicle must be paid off before you can sell the vehicle. If you have paid off a lien, the lienholder must send you a lien release and the title. You then submit both forms to the Vermont Department of Motor Vehicles (DMV) and it will issue you a new title without the lien. You will not be able to sell the vehicle until the lien release has been accepted by the state.
You should also make certain that you have the actual title. If you cannot find the title, you’ll need to request a replacement title from the DMV. You will need the physical title so that you can fill out the necessary information for the buyer as proof of the transfer of the vehicle. Your signature and the buyer’s signature will both be necessary and must be notarized.
2. Bill of Sale Requirements
Vermont requires a Bill of Sale for any vehicle sale. You should make certain that the Bill of Sale includes the following information:
- The new owner’s name
- The full address of the new owner, which cannot be a P.O. box
- The seller’s name
- The full address of the seller, which cannot be a P.O. box
- The date of the sale
- The sale price
- A full and detailed vehicle description, including the vehicle’s make, model, year, series number (if applicable) and body type (2-door, 4-door, sedan, etc.), as well as the vehicle identification number (VIN)
- The vehicle odometer reading at the time of sale
- The signature of the seller
- The signature of the buyer
Vermont requires safety inspections on all vehicles every year before registration. If you are selling a vehicle in the state, odds are you have already had to take it in for an inspection.
Vehicles manufactured in 1996 and later also require emission testing every year as part of the safety inspection. If your vehicle is of this vintage, it is your responsibility to make certain that both the safety inspection and emission testing certificates are current before you sell the vehicle. Failure to do so can void the sale and bring trouble from the state government to your doorstep.
Both the safety inspection and emission testing can be done at official Vermont inspection stations.
4. License Plates
In Vermont, when you sell a vehicle, the license plates stay with you instead of remaining with the vehicle. Transferring the plates is legal within the state as long as the new vehicle is registered in the same name as the plates. If you are not going to transfer the plates to a new vehicle, make sure you return them to the DMV before you cancel your insurance or you could face unintended fines or liability for the vehicle after you’ve sold it.
5. Odometer Disclosure Requirements
Vermont requires you to formally disclose the vehicle odometer reading when you sell a vehicle that is 10 years old or newer. To fulfill this requirement, you can fill in the appropriate space on the title when you transfer it to the buyer. You can also fill out the state’s official Odometer Disclosure form if you would prefer.
6. Other Information
If you have questions or want more details on anything related to vehicle selling, check out the Vermont Department of Motor Vehicles website.