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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.

Vermont Requirements: Vermont law sets no fixed deadline for the buyer (23 V.S.A. §2023); the DMV's 60 days applies only to people moving to Vermont. 6% sales tax.

Seller Information

Buyer Information

Car Details

Sale Information

Condition & Warranty

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First time selling a car privately? Our complete guide covers how to verify the buyer, which payment methods are safe, what paperwork the DMV actually needs, and the odometer disclosure mistake that can make a transaction legally void. Read: Car Bill of Sale: Complete Guide →

Vermont Car Bill of Sale — What You Need to Know

Primary Form
Vermont Registration, Tax & Title Application
Agency
Vermont Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
6%
Title Required
Yes
Vermont titles all vehicles regardless of age — a policy that has made Vermont famous nationwide for its ability to issue titles to pre-1981 vehicles that have no title in other states. Buyers from out of state sometimes register old cars in Vermont specifically to obtain a Vermont title, then re-title in their home state. Vermont law sets no fixed deadline for the buyer to title after a private sale (23 V.S.A. §2023); the DMV's 60 days applies to people moving to Vermont.
Inspection
Required

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

  1. 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.
  2. 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.
  3. 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.
  4. Resolve any outstanding lien on the vehicle and obtain a lien-release letter from the lender before the sale.
  5. 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.
  6. 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.
  7. Buyer obtains new Vermont plates (or transfers their own plates) and must pass the annual safety inspection before operating the vehicle on Vermont roads.
  8. 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.

Vermont Car Bill of Sale — FAQs

What is the Vermont Title Trick for old cars?
Vermont will issue a certificate of title to any vehicle regardless of model year, including pre-1981 cars that have no title in their home state. Out-of-state buyers sometimes register an old car in Vermont, maintain the registration for two years, then convert the Vermont registration to a Vermont title, and finally use that Vermont title to re-title the car in their home state. This is legal but increasingly scrutinized by other states' DMVs, and some states now require additional documentation when a Vermont title is presented for a pre-1981 vehicle.
What is Vermont's Purchase and Use Tax on vehicles?
Vermont charges a 6% Purchase and Use Tax on motor vehicle sales, collected by the VT DMV at title transfer. Unlike a traditional sales tax collected at the point of sale, this use tax is collected when the buyer registers the vehicle in Vermont. It is assessed on the greater of the actual sale price or the J.D. Power clean trade-in value — so buying below that value does not reduce the tax.
Does Vermont require an emissions test for cars?
No. Vermont is one of the few states in the Northeast that does not require any emissions inspection — no OBD-II test, no tailpipe test, and no smog certificate. Vermont does require an annual safety inspection statewide, but emissions compliance is purely a federal Clean Air Act matter, not a Vermont state requirement at the point of sale or registration.
How long does a buyer have to transfer a car title in Vermont?
Vermont law sets no fixed deadline for the buyer (23 V.S.A. §2023); the DMV's 60-day figure is for people moving to Vermont. The buyer files Form VD-119 (Registration, Tax & Title Application) and pays the 6% Purchase and Use Tax at the VT DMV — and cannot drive the car on Vermont roads until it is registered.