Selling a car in Vermont is very different from selling a car in most other states. Vermont has unique title threshold rules, places heavier importance on bills of sale for older vehicles, and expects sellers to understand inspection requirements before a buyer ever reaches the DMV. Many sellers assume the process is “simple” because Vermont is a smaller state, but that assumption often leads to rejected paperwork or delayed transfers.
This guide explains how to sell a car in Vermont so the sale is clean, legal, and final.
What Vermont Sellers Should Confirm First
Before listing your vehicle or accepting an offer, confirm these basics:
- The vehicle’s model year determines whether a title is required
- Your name matches any existing title or registration exactly
- Any lien has been fully paid off and released
- All owners listed are available to sign
- The VIN on the vehicle matches all documents
Vermont’s rules change depending on the vehicle’s age, which is where most sellers get tripped up.
Title and Paperwork Rules in Vermont
Title Threshold Rules
Vermont does not issue titles for many older vehicles. In general:
- Newer vehicles require a Vermont title to transfer ownership
- Older vehicles may transfer ownership using a registration and bill of sale instead of a title
Because of this, sellers must know whether their specific vehicle is title-required or title-exempt before selling. Providing the wrong document can stall the buyer’s registration entirely.
Title Transfer Steps (When a Title Is Required)
If the vehicle does require a title:
- The seller signs the title exactly as printed
- All owners listed must sign unless “OR” is stated
- Sale date and odometer reading must be completed
- Cross-outs or corrections can invalidate the title
Vermont does not allow sloppy title work. Clean, accurate completion matters.
Bill of Sale Usage
In Vermont, a bill of sale is extremely important—especially for older vehicles. It is often required even when a title is not.
A proper bill of sale should include:
- Sale date
- Purchase price
- Vehicle description and VIN
- Buyer and seller information
For many older vehicles, the bill of sale becomes the primary proof of ownership transfer.
Inspection Requirements in Vermont
Vermont has a strict inspection program.
- Annual safety inspections are required
- Emissions testing applies to certain vehicles based on age and fuel type
Key points for sellers:
- Inspections are typically handled by the buyer after the sale
- Vehicles that cannot pass inspection are harder to sell privately
- Buyers often reduce offers if inspection failure is likely
Even though inspection happens post-sale, it heavily affects marketability.
Plates, Registration, and Seller Responsibility
Vermont follows seller-retained plate rules.
- License plates stay with the seller, not the vehicle
- Sellers must remove plates at the time of sale
- Buyers must obtain their own registration before driving
Leaving plates on a sold vehicle can expose the seller to tickets, fines, or misuse.
Taxes and Fees in Vermont
- Buyers are responsible for sales tax and registration fees
- Sellers are not responsible for buyer taxes
- The sale price listed on the bill of sale matters for tax calculations
Accurate documentation protects both parties.
Special Situations Vermont Sellers Should Understand
- Older vehicles: Often require a bill of sale instead of a title
- Lost title: Replacing it early avoids delays
- Two names on paperwork: Both owners must sign
- Selling with a lien: Liens must be released before sale
- Non-running vehicles: Legal to sell, but inspection risk affects value
- Out-of-state buyers: Vermont’s rules can confuse non-residents
Getting Paid Safely
Private sales in Vermont still carry payment risks. Fake cashier’s checks, partial payments, and pressure to release the vehicle early are common red flags. Never hand over the vehicle or paperwork until payment has fully cleared and been verified.
If payment feels complicated, it usually is.
When Vermont’s Rules Create Unnecessary Stress
Vermont’s title exemptions and inspection standards make private sales more complicated than many sellers expect. A single missing document can send the buyer back to the DMV—and the seller back into the process.
For sellers who want a simpler option, CarBuyerUSA.com purchases vehicles in Vermont and nationwide, including older, high-mileage, damaged, or non-running cars. We help guide the paperwork, coordinate pickup, and keep the transaction contained so sellers can move on without lingering responsibility.
