How to Sell a Car in Vermont

The steps and process for selling a vehicle online are different in every state. Learn how to sell your used car or truck privately in Vermont.

Whether you live in the Vermont Lowlands, the Valley of Vermont, the Vermont Piedmont, the Green Mountains, the Taconic Mountains, or the Northeast Highlands of Vermont, if you are thinking about privately selling your used car or truck, you’ve come to the right place. With an estimated 300,000 registered trucks and cars in the state of Vermont, it’s no wonder that thousands of private vehicle sellers from the Green Mountain State have used Autotrader to sell their car. Below, we’ve outlined the five steps and required forms for how to sell a car in the state of Vermont so you can sell your car quickly for the most cash.

Remember, most states consider the vehicle title a legal document, so the legal names (no nicknames) of both parties involved should be used, along with legible handwriting using black or blue ink. Mistakes, errors, and using White-Out may void the document so be careful and take your time filling it out.

Step 1: Allow the buyer to have the car inspected by a third party
Step 2: Organize and gather all related vehicle documentation
Step 3: Bill of Sale
Step 4: Transfer the title
Step 5: Remove your plates and cancel your insurance

Step 1: Allow the buyer to have the car inspected by a third party

Many vehicle shoppers who buy a car privately pay for a pre-purchase vehicle inspection conducted by a qualified and licensed auto mechanic of their choosing. Although the buyer pays for this inspection, the seller and buyer must agree on when and where the inspection is to be held. If the inspection does find any issues with the car, it is a good idea for you as the seller to keep the report for your records. Vermont does not require this inspection and doesn’t have any forms that need to be filled out, but it’s a good idea for the buyer to have the inspection performed prior to the purchase.

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Step 2: Organize and gather all related vehicle documentation

Find all maintenance records, the owner’s manual and other paperwork related to the vehicle. If you can provide the buyer with extensive and detailed maintenance records, this will help provide the buyer with confidence that you’ve maintained the car in a proper and regular manner. You may even want to consider including a vehicle history report from a service like CarFax or AutoCheck.

The most important document when selling a car is the certificate of title. If there is a lien on the title, the lienholder must release interest in the vehicle before the car is sold. This can be achieved either by the seller paying off the car or by getting a lien release from the lienholder. The official lien release form for the state of Vermont is form VT-08 and must be filed with a $35 fee.

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Step 3: Bill of Sale

Vermont requires a bill of sale to be filled out by the buyer and the seller for private vehicle purchases. The official Vermont bill of sale is form VT-005 which contains the following information:

• Year, Make and Model of the Vehicle
• Vehicle Identification Number (VIN)
• Color of vehicle
• Date of Sale
• Purchase price
• Odometer reading
• Seller(s) name, address, phone number, email, and signature
• Buyer(s) name, address, phone number, email, and signature

After the bill of sale is filled out and signed, it’s a good idea for the seller to make a copy and hold onto it as proof that the car has legally changed hands. The National Highway Traffic Safety Administration’s (NHTSA) odometer disclosure requirements were updated in December 2020 impacting certain private vehicle sales in Vermont: For a vehicle transfer that occurs from January 1, 2021 through December 31, 2030, any vehicle of model year 2011 or newer (2012, 2013, etc.) will require an odometer disclosure. Starting on January 1, 2031, any vehicle that is less than 20 model years old will require an odometer disclosure. Previously, the NHTSA required disclosure was for only the first 10 years. Cars older than 2010 are exempt from odometer disclosures. Again, the official Bill of Sale form provided by Vermont's DMV doubles as an odomoter disclosure statement.

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Step 4: Transfer the title

If the vehicle’s title has been lost, stolen or badly damaged, you can get a replacement/duplicate Vermont title by filling out form VT-04. With that form filed at the DMV plus a $35 fee you can get a duplicate title. If a vehicle is more than 15 years old and the owner is a Vermont resident, the vehicle may have an exempt vehicle title.

The buyer and the seller both need to fill out the relevant sections on the back of the title. This information includes the legal name, address, and signature of the buyer and the seller(s) along with the date of the sale, and the odometer reading. When this is filled out accurately and legibly, it makes it easy for the buyer to transfer registration and acquire a new plate. If there is more than one seller named on the title and their names are separated by “or” then only one of the sellers needs to sign vehicle title in order to transfer it to the buyer. If there is more than one seller named on the title and their names are separated by “and” or “and/or” then both sellers need to sign the title before it is transferred to the buyer. If nothing separates the owner names, both must sign. The same applies to multiple buyers.

If you’re wondering about gifting a car to a relative, you can follow the same process that is outlined below to transfer the title. For inheriting a car, it’s a similar process, but you’ll need to file documentation of the inheritance with the county along with the title of the vehicle in question. This process can be made easier if a Transfer on Death (form VT-007) is filled out ahead of time. Additionally, Vermont provides this information covering the death of a vehicle owner.

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Step 5: Remove your plates and cancel your insurance

The seller must remove their license plates before handing the vehicle over to the buyer. If you do not do so, you may be liable for any violations after the buyer has taken possession of the vehicle. After the sale of your vehicle, you have the option of transferring the plates to another vehicle, which will require filling out sections 1-8 of form VD-119. Make sure to cancel your insurance as soon as possible after you’ve removed your plates so you don’t continue paying to insure a car that you no longer own.

For more information, visit the Vermont DMV website.

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Questions about selling your car in Vermont? We have answers.

What paperwork do I need to privately sell a car in Vermont?

Is a Bill of Sale required for selling a car in Vermont?

Do I remove my license plate when I sell a car in Vermont?

Does a bill of sale have to be notarized in Vermont?

Does a vehicle title have to be notarized in Vermont?