Free Vermont Used Car Bill of Sale
Buying a used car in Vermont rewards careful paperwork. Vermont is unusual: VT DMV titles only cars 15 years old or newer, so a used 2009 Subaru bought in 2024 may legitimately have no title — just a Vermont registration in the seller’s name. The buyer files Form VD-119 (Vermont law sets no fixed day count), pays 6% Purchase and Use Tax on the higher of sale price or J.D. Power clean trade-in value, and gets the windshield safety-inspection sticker brought current before driving regularly. Form VT-005 is the document that nails the price, VIN, odometer, and as-is condition that protect both sides if VT DMV questions valuation or a buyer later disputes mileage.
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Vermont Used Car Bill of Sale — What You Need to Know
Sales Tax Details
Vermont’s 6% Purchase and Use Tax is collected by VT DMV at title transfer based on the higher of sale price or J.D. Power clean trade-in value.
Exemption: Some family transfers may be exempt — check the DMV's list of allowable exemptions before filing VD-119.
Inspection Requirements
A current Vermont annual safety inspection sticker is required to register and drive a used car. Sellers commonly include a fresh inspection as a closing item.
Vermont Used Car Sale — Step-by-Step Checklist
- Decode the VIN and confirm it matches the title (newer cars) or prior Vermont registration (older cars)
- Record exact odometer reading on VT-005; federal disclosure applies to vehicles of model year 2011 or newer
- List sale price honestly — VT DMV will tax on the J.D. Power clean trade-in value if your number is lower
- Mark "as-is" with no warranty unless the seller is making specific written promises
- Confirm a current Vermont safety inspection sticker or budget to get one before driving
- File Form VD-119 with VT DMV before driving on Vermont roads; bring VT-005, title (or prior registration), and ID
Common Pitfalls
- Buying an older car and panicking when the seller cannot produce a title — Vermont legitimately does not title 15+ year-old vehicles
- Skipping the bill of sale because the seller "trusts you" — the DMV's private-sale document list includes one
- Letting an inspection sticker expire mid-deal; Vermont troopers ticket aggressively on stickers
- Forgetting that 6% Purchase and Use Tax is calculated on the J.D. Power clean trade-in value, not your negotiated price, when that value is higher
Pro Tip
Vermont’s used-car flow looks weird but works cleanly once you accept the 15-year title cutoff and the register-before-you-drive rule. A complete VT-005, an honest price, a current inspection sticker, and a prompt VD-119 filing get you registered without surprises.