Free Vermont As-Is Bill of Sale
Vermont's lemon law (9 VSA § 4170) applies only to new vehicles purchased from licensed dealers — a private as-is sale provides the buyer with no lemon law remedy. Under the VT UCC (9A VSA § 2-316), an "AS IS" disclaimer must be conspicuous to validly waive implied warranties. Vermont's Consumer Fraud Act (9 VSA § 2453) applies to commercial "commerce" — private individuals making casual one-time vehicle sales are generally not covered, though Vermont courts take affirmative misrepresentation seriously even in private transactions.
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Vermont As-Is Bill of Sale — What You Need to Know
Sales Tax Details
Vermont imposes a 6% Purchase and Use Tax on private vehicle sales, calculated on the purchase price or the NADA clean trade-in value, whichever is greater. If the sale price is significantly below NADA value, the DMV may assess tax on NADA value.
Inspection Requirements
Vermont requires an annual safety inspection for all registered vehicles. Although there is no mandatory inspection at the time of a private sale, the buyer must obtain a passing Vermont safety inspection sticker before the vehicle can be legally operated. Vermont does not have a statewide emissions program, but enforces the California Clean Car Standard for new vehicles.
Vermont As-Is Sale — Step-by-Step Checklist
- Sign the Vermont certificate of title on the reverse, completing the odometer disclosure, sale price, and buyer information fields.
- Draft a written as-is bill of sale with "AS IS — NO WARRANTIES" printed in conspicuous (bold, capitalized) text to satisfy UCC requirements.
- Record the full VIN, year, make, model, odometer reading, sale price, and date on the bill of sale.
- Both parties sign two copies of the bill of sale; each retains one.
- Seller removes Vermont license plates — plates remain with the registered owner unless transferred to another vehicle.
- Disclose in writing any known safety defects, inspection failures, or mechanical issues — Vermont courts treat active concealment as fraud even in as-is sales.
- Buyer applies for new title and pays 6% Purchase and Use Tax at the Vermont DMV within 15 days.
Common Pitfalls
- NADA floor for Purchase and Use Tax: Vermont may assess the 6% tax on the NADA clean trade-in value rather than the actual sale price if the sale price appears artificially low. Selling a vehicle for a nominal price to a family member or below-market to a buyer does not automatically reduce the tax owed.
- Annual inspection timing: if the vehicle's Vermont safety inspection sticker is expired, the buyer cannot legally drive it after purchase. Sellers who present vehicles with current inspection stickers in known-failing condition risk a concealment claim if the sticker obscures problems that would cause an immediate failure.
- AS IS conspicuousness: under 9A VSA § 2-316, the disclaimer must be visually distinct — same-size body text buried in a paragraph does not satisfy the requirement; bold or all-caps is the safe standard.
- 15-day title transfer deadline: Vermont's 15-day window is one of the shortest in the nation. Buyers who miss this deadline face late fees and the seller remains on record as the owner in the interim — notify the DMV promptly.
- California-standard Clean Car: Vermont enforces the California Clean Car Standard for new vehicles. While this does not affect private as-is sales directly, buyers planning to register an out-of-state vehicle in Vermont should confirm it meets Vermont's emission standards for its model year.
Pro Tip
Vermont's 15-day title transfer window and NADA-based tax floor are the two most commonly overlooked details in private vehicle sales — buyers should move immediately on title transfer, and both parties should document the agreed price clearly to avoid a tax assessment dispute.