How to Transfer a Car Title in Vermont

In the state of Vermont, all changes in vehicle ownership must be accompanied by a change in the name on the title. The title transfer process is relatively simple and straightforward, but there are several steps that must be followed by all parties involved. This applies not only to buying or selling a car, but also to donating/gifting a car, and inheriting one.

Buying a car in Vermont from a private seller

While buying through a dealership ensures that you don’t have to worry about the title transfer process, buying from a private seller means that you have several important steps to take, including the following:

  • Make sure the seller signs the title over into your name and gives it to you.

  • Make sure that the seller helps you complete the Bill of Sale and Odometer Disclosure Statement.

  • Get a lien release from the seller. Note that the state of Vermont does not allow any vehicle with a lien on it to be sold.

  • Complete the Registration/Title/Tax Application.

  • Bring all of this information, as well as the payment for the title transfer fee and registration to the Vermont DMV office. The transfer fee is $33. There is also a 6% tax that must be paid. The registration can be transferred for $23, or you can pay for a new registration, which will run from $70 to $129.

Common mistakes

  • Not getting a lien release from the seller.

Selling a car in Vermont

As the seller of a car in Vermont, you’ll need to complete quite a few steps to ensure that the process goes smoothly. These include:

  • Sign the title over to the buyer.

  • Make sure to help complete the Bill of Sale and Odometer Disclosure Statement with the buyer.

  • Give the buyer a lien release. Remember – you cannot sell a vehicle if it has a lien on it.

Common mistakes

  • Not giving the buyer a lien release

Gifting and inheriting a car in Vermont

For gifted cars, the process of transferring the car title is identical to that outlined above. The giver will take the role of seller, and the recipient will be the buyer. The only real difference is that both parties must complete the Gift Tax Exemption form to avoid having to pay sales tax on the gift.

When it comes to inheriting a car, the process is actually very complex. It’s so involved that the state of Vermont actually created an in-depth guide to walk residents through the process and provide all the required information. You can find that guide here.

For more information about how to transfer a car title in Vermont, visit the state’s DMV website.

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