Vermont Vehicle Bill of Sale

Do I need a bill of sale to sell a car in Vermont?

Yes. Vermont requires a Bill of Sale and Odometer Disclosure Statement (Form VT-005) for all vehicle transactions. This single form combines both the bill of sale and the odometer disclosure, streamlining the documentation. The form must include the buyer's and seller's full names and addresses, a complete vehicle description including VIN, the sale price, date of sale, odometer reading, and signatures of both parties. The bill of sale is submitted to the Vermont DMV with the title application.

Does a Vermont bill of sale need to be notarized?

No. Vermont does not require the bill of sale (Form VT-005) or the title assignment to be notarized. This makes Vermont one of the more streamlined states for private vehicle transfers. Notarization is optional and may provide additional assurance but is not required by state law. A notarized Affidavit of Non-Titled Vehicle (Form VT-025) is required only when titling a vehicle that has never been issued a certificate of title.

How long do I have to register a vehicle after purchase in Vermont?

Vermont does not specify a strict deadline for title applications from private purchases, but recommends prompt submission to avoid liability issues. The buyer completes the Vermont Motor Vehicle Registration, Tax, and Title Application (Form VD-119) and submits it to any Vermont DMV office or town clerk along with the assigned title, bill of sale (Form VT-005), and payment for the purchase and use tax and registration fees.

How much is the purchase and use tax on a vehicle in Vermont?

Vermont imposes a 6% purchase and use tax on motor vehicles. The tax is calculated on the purchase price or the J.D. Power clean trade-in value, whichever is greater. This means that stating a low price on the bill of sale will not reduce the tax if the vehicle's book value is higher. Vermont does not exempt private-party sales from this tax. The buyer pays the tax at the time of registration at the DMV or town clerk's office.

Is an odometer disclosure required in Vermont?

Yes. The Vermont Bill of Sale and Odometer Disclosure Statement (Form VT-005) integrates the odometer disclosure into the same form. The disclosure is required for vehicles model year 2011 and newer (through 2030 under updated NHTSA rules). Vehicles model year 2010 and older, vehicles weighing over 16,000 pounds, and non-self-propelled vehicles are exempt from the odometer disclosure requirement.

What changed about Vermont vehicle titling in 2024?

As of July 1, 2024, Vermont requires a certificate of title for all vehicles when ownership changes, regardless of the vehicle's age. Previously, vehicles over 15 years old were title-exempt. Vehicles that are currently owned and not being sold can remain title-exempt if they qualified before July 1, 2024, but once a vehicle is transferred to a new owner, the new owner must obtain a title. This closes the former "Vermont loophole" that allowed non-residents to register vehicles using only a bill of sale.

What if the vehicle has multiple owners?

If the vehicle is titled to more than one person, all owners on the title must sign the bill of sale. Use the "Add a co-seller" option on the form to add the second seller's name and address. Both sellers' names and signature lines will appear on the document. For electronic signing, each co-owner can sign on the same device in sequence, or the document can be passed from one device to another via QR code or shared link. Both buyers can likewise be named on the bill of sale using the "Add a co-buyer" option.