Vermont Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Vermont Auto Dealer Bond Key Facts
Governed by 23 V.S.A. § 2020.
The basics
What Is an Auto Dealer Bond in Vermont?
A bonded title in Vermont is a regular Certificate of Title the DMV issues on the strength of a Title Bond (DMV form VT-020), also called a Certificate of Title Surety Bond. Vermont uses it only when you cannot get the normal proof of ownership and have exhausted every other way to obtain the title. Vermont law calls this filing a bond under 23 V.S.A. § 2020.
Good to know - There is no minimum dollar value. A Title Bond applies only when you cannot present documents sufficient to satisfy the Commissioner as to ownership (or the absence of undisclosed security interests) and you have exhausted all other options to obtain the title. You must be a Vermont resident — the Commissioner does not issue titles to nonresidents under this provision.
The bond protects the State of Vermont and any prior owner, lienholder, or future buyer if someone else turns out to have a claim on the vehicle. You file it together with your Registration/Tax/Title Application (VD-119) — it does not replace the application.
Vermont sets the bond at 1.5 times your vehicle's value, as determined by the Commissioner using the J.D. Power average trade-in value, and the bond stays in effect for three years. If no one makes a valid claim during that time, the bond ends and you keep a clear title.
You must be a Vermont resident, and a bond is not always needed. If you can show ownership another way that satisfies the Commissioner, the DMV can issue the title without a bond. Once you have a bonded title, you can use it to register, insure, or sell the vehicle, and the bond can pass to the next owner if you sell it.
Qualification
What You Need to Qualify for a Vermont Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are a Vermont resident. Under 23 V.S.A. § 2020, the Commissioner does not issue titles to nonresidents under the bond provision.
- You cannot present documents sufficient to satisfy the Commissioner as to your ownership of the vehicle, or as to the absence of undisclosed security interests (liens).
- You have exhausted all other options to obtain the title and can show you reasonably tried to get it from the previous owner, the state DMV, or any lienholder.
- The Title Bond is executed by you and either accompanied by a cash deposit with the Commissioner or executed by a company authorized to conduct surety business in Vermont.
Step by step
How to Get an Auto Dealer Bond in Vermont: Step by Step
Confirm you qualify and have exhausted other options
Vermont issues a Title Bond only when you cannot otherwise prove ownership. Make sure you are a Vermont resident and can show you reasonably tried to get the title from the previous owner, the DMV, or any lienholder. Nonresidents are not eligible.
Determine your bond amount
Vermont sets the bond at 1.5 times your vehicle's value, as determined by the Commissioner using the J.D. Power average trade-in value. Enter your vehicle value in the calculator above to estimate your premium.
Have your surety complete the VT-020 Title Bond
Buy the Title Bond and have your insurance or surety company complete DMV form VT-020. Both sides of the form must be filled in, including a detailed explanation of why proper ownership documents are unavailable. Once executed, the bond stays in effect for three years.
Title Bond (VT-020)Get your VIN verified on form VT-010
Vermont requires a VIN verification for a vehicle titled under bond. Have a Vermont law enforcement officer or a designated DMV employee examine the vehicle and complete the Verification of VIN/HIN (form VT-010).
Verification of VIN/HIN (VT-010)File your bond and application with the DMV
Return the completed VT-020 bond to the Vermont DMV with your Registration/Tax/Title Application (VD-119), your ownership documents (such as a bill of sale or old registration), and the fees due for registration, tax, and title. Mail or bring everything to 120 State Street, Montpelier.
Registration/Tax/Title Application (VD-119)Paperwork
Vermont Dealer Bond Forms & Documents
The surety bond filed with your title application; completed by your insurance or surety company.
View formThe main Vermont registration, tax, and title application.
View formRequired for vehicles titled under bond; completed by law enforcement or a designated DMV employee.
View formYou'll also need
Cost
How Vermont Auto Dealer Bond Pricing Works
You do not pay the full bond amount. In Vermont, the Title Bond must equal 1.5 times your vehicle's value, as determined by the Commissioner using the J.D. Power average trade-in value. You pay a premium, which is a smaller percentage of that bond amount.
Your premium depends on the bond amount and underwriting. Use the calculator above for an estimate; your final premium may vary. Vermont's title fee, any lien fee, the 6% Purchase and Use Tax, and registration fees are separate from the bond premium.
Worked example
If your vehicle's J.D. Power average trade-in value is $6,000, the bond amount is 1.5x that, or $9,000. You pay only the premium on the $9,000 bond, not the full $9,000.
Filing
Filing Information
Vermont Department of Motor Vehicles (DMV)
We prepare the issued bond and send you a copy for your records. Filing requirements vary by state, license type, carrier, and bond form.
802-828-2000FAQ
Vermont Auto Dealer Bond FAQ
Yes, in certain cases. Vermont issues a Certificate of Title backed by a Title Bond (DMV form VT-020) under 23 V.S.A. § 2020 when the Commissioner is not satisfied as to ownership and you have exhausted all other options to get the title. You must be a Vermont resident.
The bond amount is 1.5 times your vehicle's value, as determined by the Commissioner using the J.D. Power average trade-in value. You pay a premium — a percentage of that amount — not the full bond amount. Use the calculator above to estimate it.
By the Commissioner of Motor Vehicles. The Vermont DMV uses the J.D. Power average trade-in value, and under 23 V.S.A. § 2020 the bond must equal one and one-half times that value.
Three years. Under 23 V.S.A. § 2020, the bond stays in effect for three years from the date it is executed, unless the Commissioner releases it sooner. It is returned after three years, or earlier if the vehicle is no longer registered in Vermont and you surrender the valid title.
Usually when you buy a vehicle without a title, when the title is missing key information such as the current owner's name, or when you lose the title before it is transferred to your name — and only after you have tried to get the title from the previous owner, the DMV, or any lienholder.
No. Under 23 V.S.A. § 2020, the Commissioner does not issue titles to nonresidents under the bond provision. You must be a Vermont resident to file a Title Bond.
With the Vermont DMV. Return your completed VT-020 Title Bond with your Registration/Tax/Title Application (VD-119), your ownership documents, and the fees due to 120 State Street, Montpelier, VT 05603-0001. Call 802-828-2000 with questions.
Sources
Last verified 2026-06-23. Requirements change - confirm current details with Vermont Department of Motor Vehicles (DMV) before you file. This page is informational and not legal advice.
FAQ
Vermont Auto Dealer Bond Questions
The cost of a Vermont auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Vermont auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Vermont license instructions.
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AutoDealersBond.com is operated by Insurance Services by Shield, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Insurance Services by Shield is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
