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Vermont driving lesson · Your Vehicle: Equipment, Insurance & Ownership

Registration, title & buying or selling

A 4-minute lesson from the Vermont course. Read the rules and examples, follow the handbook page references, and check your understanding before you move on.

Read time
4 minutes
Course unit
Your Vehicle: Equipment, Insurance & Ownership
Checkpoint questions
6
Source pages
66, 67, 68

Every vehicle you drive on Vermont roads must be registered, titled and taxed. When you buy, sell or trade a vehicle, the paperwork protects both sides. Know the deadlines, what to do with the plates, and how the tax works.

Know the rule

If you live in Vermont and want to drive a vehicle on the roads, you must register it.

Handbook p. 66 ↗
60 days

New residents must register their vehicle within 60 days of moving to Vermont

Handbook p. 66 ↗

Know the rule

Proof of valid registration must always be in the vehicle when it's used. A police officer has the right to see it.

Handbook p. 66 ↗

Know the rule

Plates must be fastened so they won't come loose, kept clean and never covered. The rear plate must be lighted and readable from at least 50 feet. Plates may be used only on that vehicle, or transferred to one you buy when you trade or sell the old one.

Handbook p. 66 ↗

Selling your vehicle:

  • Give the buyer a bill of sale: buyer's name, your signature, date, year, make, serial number and price
  • Sign the back of the title with the new owner's name and address, the mileage and the date of sale
  • Seller and buyer both sign an odometer statement for model year 2011 or newer
  • Remove your registration plates
Handbook p. 66 ↗

Trading your vehicle:

  • Give a bill of sale for your old vehicle, and get one for the vehicle you receive
  • Have the title of the vehicle you get properly signed over to you
  • Remove your plates; to transfer your registration, put them on the new vehicle
  • Mail the Application for Registration, Tax and Title, the title and fees to the DMV within 24 hours
Handbook p. 66 ↗
6%

Purchase and Use Tax on a non-leased vehicle: 6% of the price paid or the fair market value, whichever is greater

Handbook p. 67 ↗

Know the rule

A new resident who already paid sales or use tax elsewhere is exempt if that tax was equal to or more than Vermont's, or if the vehicle was registered at least 3 years where such tax is collected. If less was paid, you owe the difference.

Handbook p. 67 ↗

Know the rule

A leased vehicle is taxed at 6% of the acquisition cost minus the lease-end value, shown on form VD-147 or the lease or dealer worksheet. Without those documents, it's taxed at 6% of the full acquisition cost.

Handbook p. 67 ↗

Know the rule

All vehicles must have a Vermont title, except for example a motorcycle under 300 cc and a trailer with an empty weight of 1,500 pounds or less. New vehicles need a Manufacturer's Certificate of Origin.

Handbook p. 67 ↗

Vehicle Identification Number (VIN)

A 17-character code of digits and capital letters that uniquely identifies a vehicle. Before 1981, VINs were 11 to 17 characters long.

Handbook p. 68 ↗

VIN verification is required for:

  • Vehicles with salvage documentation
  • Vehicles being titled under bond
  • Vehicles registered in any foreign country, including Canada
Handbook p. 68 ↗

Know the rule

VIN verifications must be done in Vermont by a Vermont law enforcement officer, supervised law enforcement personnel, or designated DMV employees. A salvage vehicle gets a title marked REBUILT VEHICLE.

Handbook p. 68 ↗

Lien holder

The bank, credit union or person who lent you money for a vehicle. Its name goes on the registration application, and it keeps the title until you repay the loan.

Handbook p. 68 ↗

Put it into practice

You sell your 2015 sedan to a neighbor for $8,000. Give her a bill of sale, sign the title over with her name, address, mileage and date, sign the odometer statement together, and take your plates off before she drives away.

Check your understanding

Read the question, decide on an answer, then open it to check the explanation. These are Roadwise study questions based on the source handbook.

You move to Vermont from another state. Within how many days must you register your vehicle here?
  1. 30 days
  2. 60 days
  3. 15 days
  4. 90 days

Answer: 60 days

If you move to Vermont from another state, you must register your vehicle within 60 days of moving in.

Handbook p. 66 ↗
How is Vermont's Purchase and Use Tax figured on a non-leased vehicle?
  1. 6% of the price paid, even if below market value
  2. 4% of the price or market value, whichever is greater
  3. 6% of the price or market value, whichever is greater
  4. 9% of the price paid

Answer: 6% of the price or market value, whichever is greater

The tax is 6% of the price paid or the current fair market value, whichever is greater.

Handbook p. 67 ↗
You sell your car to a private buyer. What should you do with your registration plates?
  1. Leave them on for the buyer
  2. Remove them from the vehicle
  3. Mail them to the DMV within 30 days
  4. Give them to the buyer with the title

Answer: Remove them from the vehicle

When selling, remove your plates; they may be transferred to a new vehicle you buy.

Handbook p. 66 ↗
When trading your vehicle, how soon must you mail the Application for Registration, Tax and Title to the DMV?
  1. Within 72 hours
  2. Within 15 days
  3. Within 24 hours
  4. Within 30 days

Answer: Within 24 hours

Mail the application, the title and the fees to the DMV in Montpelier within 24 hours.

Handbook p. 66 ↗
An odometer statement signed by both seller and buyer is required on sales of vehicles of which model years?
  1. 2001 or newer
  2. 2011 or newer
  3. 1981 or newer
  4. 2015 or newer

Answer: 2011 or newer

An odometer statement is required on all sales of vehicles model year 2011 or newer.

Handbook p. 66 ↗
A motorcycle with less than 300 cc of engine displacement is an exception to Vermont's title requirement.
  1. True
  2. False

Answer: True

Exceptions to the title requirement include a motorcycle under 300 cc and a trailer with an empty weight of 1,500 pounds or less.

Handbook p. 67 ↗
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