Free Vermont Car Bill of Sale
Vermont car sales come with a nationally famous quirk: because Vermont titles vehicles of any age, including pre-1981 cars that have no title in other states, a Vermont title is sought by classic car buyers across the country. For in-state sales, the key facts are simpler — a 6% Purchase and Use Tax collected at the VT DMV (Vermont law sets no fixed buyer deadline), annual safety inspection (but no emissions test anywhere in Vermont), and plates that stay with the seller.
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Vermont Car Bill of Sale — What You Need to Know
Sales Tax Details
Vermont charges a 6% Purchase and Use Tax on vehicle sale price — technically not a traditional sales tax, but a use tax collected by the VT DMV at the time of title transfer or registration. It is assessed on the greater of the sale price or the J.D. Power clean trade-in value. There is no county or local vehicle tax on top of the state rate.
Exemption: Some family transfers may be exempt from Vermont's Purchase and Use Tax — confirm with VT DMV at time of transfer.
Inspection Requirements
Vermont requires an annual safety inspection for all registered vehicles statewide. Vermont does NOT require an emissions inspection — there is no OBD-II or tailpipe test anywhere in the state. Safety inspection cost is typically $20–$35 at any Vermont-licensed inspection station. The buyer will need a current inspection sticker to operate the vehicle legally.
Vermont Car Sale — Step-by-Step Checklist
- Complete a bill of sale with the VIN, year/make/model, odometer reading, sale price, sale date, and both parties' full names, addresses, and signatures.
- Seller signs the Vermont title (or, for pre-1981 vehicles without a title, provides a bill of sale, any prior ownership documentation, and — where the DMV requires it — an Affidavit of Non-Titled Vehicle, Form VT-025, signed before a notary) over to the buyer.
- Seller removes the Vermont license plates — plates stay with the registered owner and must be transferred to another Vermont vehicle or surrendered to the VT DMV.
- Resolve any outstanding lien on the vehicle and obtain a lien-release letter from the lender before the sale.
- Buyer completes Form VD-119 (Registration, Tax & Title Application) and brings it along with the signed title, bill of sale, and valid ID to the VT DMV before driving the car on Vermont roads.
- Buyer pays the 6% Vermont Purchase and Use Tax on the greater of the sale price or J.D. Power clean trade-in value at the VT DMV.
- Buyer obtains new Vermont plates (or transfers their own plates) and must pass the annual safety inspection before operating the vehicle on Vermont roads.
- For out-of-state vehicles: a VIN inspection by a Vermont law enforcement officer or DMV inspector may be required before Vermont issues a title.
Common Pitfalls
- Underreporting sale price versus J.D. Power: Vermont's 6% tax is assessed on the greater of the sale price or the J.D. Power clean trade-in value. A sale price below the J.D. Power clean trade-in value does not reduce the tax bill — the tax is on whichever is greater.
- Driving before registering: Vermont law sets no fixed day count for the buyer (23 V.S.A. §2023), but the vehicle cannot be legally operated on Vermont roads without a valid registration.
- Leaving plates on the car: Vermont plates are registered to the owner, not the vehicle. Sellers who allow buyers to drive away on their plates remain financially and administratively responsible for any violations under that registration.
- Confusing the Vermont Title Trick for in-state sales: the well-known workaround for getting titles on old cars via Vermont registration is a two-year process for out-of-state buyers; it is not a shortcut for regular in-state Vermont private sales.
Pro Tip
Vermont car sales are among the cleanest in the Northeast — no emissions test, no fixed buyer deadline in state law, and straightforward 6% Purchase and Use Tax. The Vermont title process for old vehicles without prior titles is a genuine advantage for classic car buyers. Document the sale thoroughly, pull the plates, and give the buyer a complete VD-119 package so the DMV filing is painless.