Who needs this bond?

Anyone applying for or renewing a motor vehicle dealer license in Vermont must obtain an auto dealer bond as part of the licensing process with the Vermont Department of Motor Vehicles. The required bond amount is based on how many vehicles the dealership has sold in the past two years.

This bond is required before the state will issue or renew your dealer license. It guarantees that you will operate your dealership in compliance with Vermont laws and licensing rules. If a dealer violates those rules and causes financial harm, a claim can be filed against the bond. If a claim is paid, the dealer is responsible for reimbursing the bonding company.

How much does this bond cost?

The bond amount required by Vermont depends on your sales volume over the past two years:

  • $20,000 bond for dealers selling fewer than 25 vehicles
  • $25,000 bond for dealers selling between 25 and 100 vehicles
  • $30,000 bond for dealers selling between 101 and 250 vehicles
  • $35,000 bond for dealers selling more than 250 vehicles

You do not pay the full bond amount. Instead, you pay a small percentage of that amount as your premium. In most cases, premiums range from 1% to 3% of the total bond amount.

Your exact rate is based on factors such as personal credit, financial history, industry experience, and licensing background. Applicants with strong credit typically qualify for the lowest rates, but options are available across a wide range of credit profiles.

How do I get this bond?

Getting your Vermont auto dealer bond is a straightforward process:

  1. Complete a short bond application.
  2. The bonding company reviews your credit and background information.
  3. Receive a quote and, once approved, pay the premium.
  4. The bond is issued for filing with the Vermont DMV.

This bond is one of several requirements for obtaining your dealer license. You will also need to submit a dealer license application, provide a sales tax license, complete a background check, pay required licensing fees, and establish a compliant business location with proper registration and documentation.

Can I get this bond with bad credit?

Yes, many dealers are still able to obtain a Vermont auto dealer bond with less-than-perfect credit. While credit history does impact your rate, it does not automatically disqualify you.

Applicants with lower credit scores may pay a higher premium, but bonding options are available in most situations.

How fast can I get this bond?

In many cases, bond quotes are provided the same day the application is submitted. Once payment is made, the bond can typically be issued quickly so you can move forward with your license application.

Keep in mind that while the bond itself can be issued promptly, the Vermont DMV licensing review process may take several weeks after you submit your full application package.

Are there any local requirements?

The auto dealer bond requirement applies statewide through the Vermont Department of Motor Vehicles. The bond amount is determined by your dealership’s sales volume, not by city or county.

You must also maintain a business location that meets Vermont DMV requirements and ensure all supporting documents are properly filed with the state as part of your license application.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.