The Expert Podcast

• We address two of the most frequently asked questions about the Vermont registration bill of sale process for vehicles:
  • Can you use this process if your vehicle is a shell, not roadworthy, or in parts?
  • How much tax do you have to pay, and can you reduce that amount?
  • Do you pay tax based on the purchase price or the vehicle’s condition?
• Important reminder:
  • The Vermont bill of sale process is only one of 10 different ways to get a vehicle title.
  • Many people try to use this Vermont “loophole” thinking it’s an easy or sneaky way to get a title.
  • In many cases, other methods are cheaper, faster, and more direct with your state DMV.
• Vehicle Condition & Vermont VD119 Form:
  • The official Vermont VD119 form must be filled out carefully (typing recommended).
  • You must sign in ink, certifying under penalty of perjury that the vehicle is “properly equipped” and in “good mechanical condition.”
  • If the vehicle is a shell, in parts, not running, or unsafe, it cannot be registered using this process.
  • Vermont DMV may reject the application or require inspections if the vehicle condition is questionable.
  • Liability insurance is required at the time of registration.
• About Taxes:
  • Vermont sales/use tax is due at registration, based on the greater of:
    • The purchase price you paid for the vehicle
    • The NADA clean trade-in value (or other accepted vehicle valuation books)
  • If you paid less than the book value (e.g., bought a car for $500 but the book value is $10,000), tax is calculated on the higher amount.
  • There are multiple vehicle valuation books Vermont may accept; sometimes using a different book can lower your taxable value.
  • You can claim a tax credit if you already paid sales tax in another jurisdiction; if that tax was less than Vermont’s, you pay the difference.
• Vehicle Appraisal for Tax Reduction:
  • You may submit a Vermont dealer appraisal form to argue for a lower taxable value if the vehicle’s condition is poor.
  • Appraisals must be done by licensed appraisers accepted by Vermont DMV — family or casual appraisers are not sufficient.
  • The cost of an appraisal might outweigh the tax savings unless the difference is significant.
  • Example: High-value, damaged imported cars might benefit from a professional appraisal to reduce taxes.
• Key Takeaways:
  • Your vehicle must be properly equipped and in good mechanical condition to qualify.
  • You pay tax based on the greater of your purchase price or an accepted vehicle value.
  • Vermont registration does not grant a title for vehicles 2007 or newer; only registration.
  • Other title acquisition methods might be more suitable for project cars or shells.
• Final advice:
  • Don’t try to fill out the form blindly — many applications get rejected or canceled due to errors.
  • Watch the official instructional videos before submitting your application.
  • We offer title consulting and guidance if needed.
  • Contact us or visit cartitles.com for more info.
• We welcome your questions and feedback — leave comments and we might cover them in future episodes!