Motor Vehicle Dealer Bonds – Vermont
A bond acts as a type of financial protection to the public. If a dealer does not follow the conduct required by law, the customer may suffer financial loss. In such a case, the bond will reimburse the customer. In Vermont, only new and used car/truck dealers need to have a bond.
Vermont Dealer Bond Rates.
Jet Surety works to find you the lowest rate for your bond. We partner with several insurance companies to compare rates and find what works best for you.
For a rate, the amount of the bond needed for your business is a big factor, but other personal aspects, such as dealership owner’s credit, affect the rate as well. Regardless, Jet will look for the rate at the lowest cost to you.
We can also offer competitive pricing through our monthly payment plan, starting at $18 for a new dealer needing a $35,000 bond. If you’d like a yearly payment, our rates start at $210 for a $35,000 bond.
|Price Tier*||$35,000 New
> 25 Cars
|Monthly | Annual||Monthly | Annual||Monthly | Annual||Monthly | Annual||Monthly | Annual|
|Preferred||$18 | $210||$11 | $120||$13 | $150||$16 | $180||$18 | $210|
|Standard||$38 | $455||$22 | $260||$27 | $325||$25 | $300||$38 | $455|
|Credit Repair||$66 | $700||$38 | $400||$47 | $500||$56 | $600||$66 | $700|
*Pricing reflected is not a guarantee, as the final quote for the bond is based on personal credit as stated above. Please note that not all available price tiers are shown.
Why Choose Bonds When There are Bond Alternatives?
The State of Vermont allows you to submit a Certificate of Deposit or a Letter of Credit in lieu of a bond. However, both the Letter of Credit and the Certificate of Deposit will require the full amount of the bond deposited into a bank account. You will have to supply that money yourself and it will be locked up until several years after you are done with your business as a dealer.
Bonds act in a way similar to insurance, where you pay a small price to receive coverage in the full amount of the bond. If following the guidelines expected of dealers, you will not have to pay anything more than the amount to receive your bond. However, if claims are made against you, the bond will reimburse the customer and you are still obligated to pay back the surety.
Can the application be done online?
Yes, and can be completed in one minute or less. Click the bond type below that corresponds with your business. Once submitted Jet will deliver a competitive quote within one business day.
|Vermont Surety Bond Apps|
|$35,000 New Applicant Motor Vehicle Dealer Bond|
|$20,000 Bond for Dealers Selling Less Than 25 Vehicles Per Year|
|$25,000 Bond for Dealers Selling Between 25-100 Vehicles Per Year|
|$30,000 Bond for Dealers Selling Between 101-250 Vehicles Per Year|
|$35,000 Bond for Dealers Selling 250+ Vehicles Per Year|
Checklist for a New Dealer in Vermont.
Listed below are items needed for new dealer registration. This applies to new car, used car, trailer, highway building equipment, motorcycle, and farm equipment dealers.
- 1,200 square foot building, required for all dealers except ATV, snowmobile, and boat dealers
- Local Zoning Compliance
- One-year minimum Lease Agreement with the correct location (if leasing)
- Copy of Deed (if you own the building)
- Proof of Insurance on the dealer plates (must be in dealer’s name)
- Franchise Agreement, only for new car dealers
- $35,000 surety bond, either two years or continual (only for New/Used car dealers)
- Completely filled out Dealer Registration application
More information can be found in the New Vermont Dealer Information Packet.