Vermont Vehicle Bill of Sale

How to sell a vehicle in Vermont

A car bill of sale records who sold which vehicle to whom, for how much, and on what date. The buyer uses it to register and pay tax; the seller keeps a copy as proof the car changed hands before any tickets or tolls showed up.

Seller steps

1. Confirm you hold clear title. If a lender is on the title, get the lien release before you list it.
2. Agree on the price and fill in the Vermont vehicle bill of sale above with the buyer. Record the VIN and the exact odometer reading.
3. Both parties sign and each keeps a copy. Vermont does not require a notary.
4. Sign the title over to the buyer exactly as your name appears on it, and complete the odometer section on the title if the vehicle has one.
5. File a notice of sale or release of liability with the Vermont Department of Motor Vehicles if Vermont offers one, remove your plates if the state keeps plates with the seller, and cancel the insurance once the buyer has driven away.

Buyer steps

1. Bring the signed bill of sale (or Vermont's VT-005), the signed title and your ID to the Vermont Department of Motor Vehicles.
2. Expect to pay sales or use tax on the price shown on the bill of sale, plus title and registration fees.
3. Register within Vermont's deadline, commonly 10 to 30 days from the sale date, to avoid late penalties.

Before you sign

• Copy the VIN straight off the dashboard plate or door-jamb sticker, not from memory.
• Write the odometer reading at the moment of sale; federal law requires it for most vehicles under 20 model years old.
• Both parties sign, and each keeps a signed copy.
• Sellers: remove the plates if your state keeps plates with the seller, and file a notice of sale or release of liability if your state offers one.

Why a bill of sale matters for a vehicle

• Proves the sale date, so the seller is off the hook for tickets, tolls and accidents after the handoff.
• Shows the DMV or county tax office the price paid, which sets sales tax.
• Backs up the signed title if the title is lost or has no price field.
• Documents an as-is sale so the buyer cannot come back over a repair later.

Selling a vehicle? The $19 sell-your-vehicle kit adds a signed release of liability and a Vermont checklist to the pack, so the handoff is finished the day you sign.