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Vermont motor vehicle dealer bonds.
From $100.

Also known as the Vermont auto dealer bond or car dealer bond.

Looking for the Vermont title bond?

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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One soft credit pull — never a hard inquiry, and it never affects your score
A-ratedA.M. Best carriersInstantissued the moment you paySoft pull onlynever a hard inquiry
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
Price

How much does a Vermont motor vehicle dealer bond cost?

1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.

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.

RIGHT AWAY

Approved

Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

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
After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

The premium covers a one-year term from the effective date you choose.

Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.

How to file it

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.

What sets the price

The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.

One soft credit pull, never a hard inquiry, and it never affects your score.

Where a check runs, it decides approval; the rate is the same for everyone approved.

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 issued when you pay.

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: one soft credit pull, never a hard inquiry, and it never affects your score. 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.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other Vermont bonds.

Nearby states

The same bond in nearby states.

Price and requirements checked on the carrier’s application, . Page updated .

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