What is a Vermont Car Dealer Bond?
Vermont Car Dealer Bonds are required by Vermont's AOTDMV to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $20,000. The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.
The State requires a Car Dealer bond for each license you hold:
$20,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers and any other type of dealer
Different parts of a bond:
There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Vermont MVD Bond Information and Requirements:
A new or used car dealer registration shall not be issued unless the dealer has provided the Commissioner with a surety bond issued by an entity authorized to do business in Vermont in an amount set forth in subsection B of this section.
The amount shall be based upon the dealer’s sales in the year prior to the year for which the application is being made, or in the case of a 2 year dealer registration the previous two years as follows:
Less than 25 vehicles $20,000. 25 to 100 vehicles $25,000. 101 to 250 vehicles $30,000. 251 or more vehicles $35,000
If the applicant was not registered as a dealer in the year immediately prior to the year for which the application is being made, the amount shall be $35,000.00.
1. Forms shall be available upon request from the Commissioner
2. Only such forms or identical forms independently produced shall be used