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.
Free PDF includes a light diagonal watermark. Go Pro to remove it. Already subscribed? Sign in.
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 J.D. Power clean trade-in value, whichever is greater. Whenever that value is higher than the sale price, the tax is assessed on it.
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 before driving the vehicle.
Common Pitfalls
- J.D. Power floor for Purchase and Use Tax: Vermont assesses the 6% tax on the J.D. Power clean trade-in value whenever it is greater than the actual sale price. 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.
- No fixed title deadline: Vermont law sets no day count for the buyer, so a slow buyer can leave the seller 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 register-before-you-drive rule and J.D. Power-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.