Motor Vehicle Dealers - Used Vehicles Only

The Motor Vehicle Dealer Continual Bond is a surety bond required by the State of Vermont for businesses engaged in the sale of used motor vehicles. This bond serves as a financial guarantee that the dealer will comply with all applicable state laws, regulations, and licensing requirements governing motor vehicle sales.

Used motor vehicle dealers operating in Vermont must obtain this bond as part of their licensing requirements. The bond ensures that dealers conduct business ethically and in accordance with Vermont's motor vehicle dealer regulations, including proper handling of titles, accurate disclosure of vehicle conditions, and adherence to consumer protection laws.

The bond protects the State of Vermont and consumers who purchase vehicles from licensed dealers. If a dealer violates state regulations or engages in fraudulent practices that result in financial harm to consumers, claims can be made against the bond to provide compensation for damages up to the bond amount.

Bond amounts are determined by the dealer's sales volume from the previous year: new dealer applicants require $35,000, dealers selling fewer than 25 vehicles need $20,000, those selling 25-100 vehicles require $25,000, dealers selling 101-250 vehicles need $30,000, and those selling 251 or more vehicles require $35,000. The bond has a one-year term and is renewable annually to maintain continuous licensing compliance.