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Yes, a Bill of Sale and Odometer Disclosure Statement (Form VT-005) is required for all private sales. This document serves as your official receipt and is necessary for calculating the tax you owe. It must include the vehicle details (VIN, make, model, year), purchase price, date of sale, and the signatures of both the buyer and seller.
You will pay the Vermont Purchase and Use Tax when you register the vehicle. The tax rate is 6% of the purchase price or the NADA (National Automobile Dealers Association) trade-in value, whichever is higher. If you paid less than the book value because the car has significant mechanical issues, you may be able to lower the tax burden by submitting a specialized form, but generally, the tax is based on the book value. You will also pay registration and title fees.
For vehicles that are 15 years old or newer, you must obtain the original Certificate of Title. The seller must sign the "Transfer of Ownership" section on the back of the title. This section must include the date of sale and the current odometer reading. Both you and the seller must sign it. If the vehicle is older than 15 years, Vermont does not issue titles. In this case, the seller must provide the last valid registration certificate and a bill of sale.
You cannot legally drive the vehicle using the seller's license plates. Those plates belong to the seller and must be removed. To drive the car home, you generally need to visit a DMV office or a town clerk's office immediately to get temporary plates or full registration. If that isn't possible, you should arrange for the car to be towed or transported.
You should register the vehicle as soon as possible. Vermont law requires residents to register vehicles they own and operate. While there isn't a strict "deadline" like 10 days, you cannot legally drive on public roads without valid registration. Remember, once registered, the 15-day clock starts ticking for you to get the mandatory safety inspection.
To complete the registration and title transfer, bring the following:
The original title (assigned to you) OR the last registration (for cars >15 years old).
A completed Bill of Sale and Odometer Disclosure Statement (Form VT-005).
A completed Registration, Tax, and Title Application (Form VD-119).
Your valid driver's license.
Payment for the 6% Purchase and Use Tax, title fee (if applicable), and registration fee.
From Inspections to Negotiations: Your Guide to Buying Cars Privately in Vermont.
View Vermont Guide