Learn About Vermont DMV Bill of Sale Requirements

What Vermont's Bill of Sale Actually Is (And Why It Matters for Your Car)

A bill of sale is a written record that documents the transfer of a vehicle from one person to another. In Vermont, this document serves as your proof that you bought or sold a car, truck, or motorcycle. It's not just a piece of paper—it's a legal record that both the buyer and seller should keep for their records.

Free Guide to Raising Cane's Customer Service Contact Options →

Vermont's Department of Motor Vehicles treats the bill of sale as an important part of the registration and title process. When you purchase a vehicle in Vermont, the bill of sale helps establish who owned the vehicle before you and confirms the transaction took place. The DMV uses this information when you apply for a title in your name. If you're selling a vehicle, having a bill of sale protects you by creating a written record that the vehicle is no longer your responsibility after the sale.

The bill of sale doesn't replace a title—that's a separate document issued by the Vermont DMV that proves ownership. Instead, the bill of sale is the transaction record that gets you started on the path to obtaining or transferring a title. Without it, the DMV has no documentation of the sale, which can create complications when registering the vehicle.

Vermont law doesn't require a bill of sale in all situations. However, the Vermont DMV strongly recommends one, and it's practically necessary if you're dealing with any institution—like a bank, insurance company, or the DMV itself—that needs proof the vehicle changed hands. Many dealers provide bills of sale automatically. Private sellers, however, often overlook this step, which is where misunderstandings occur.

Practical takeaway: Think of a bill of sale as your receipt for a major purchase. Just as you'd keep a receipt for a computer or appliance, keeping a bill of sale for a vehicle transaction creates a clear record of who bought it, who sold it, when it happened, and for how much. This protects both parties and makes the DMV registration process straightforward.

Required Information That Must Appear on a Vermont Bill of Sale

Vermont doesn't have one official bill of sale form that the DMV requires you to use. Instead, Vermont law allows flexibility in format, but certain information must be present on whatever document you create or use. The Vermont DMV has published guidance about what details should appear, and financial institutions, title companies, and legal sources all agree on the essentials.

Get Your Free Home Exterior Renovations Guide →

The seller's name and address must be clearly stated on the bill of sale. This is the person who currently owns the vehicle and is transferring it. The buyer's name and address must also be included. Both parties should be identifiable without question. If the seller is a business—such as a car dealership—the business name and address serve this purpose.

The vehicle identification number (VIN) is critical. This is the unique 17-character code assigned to every vehicle. You can find it on the dashboard (visible through the windshield on the driver's side), on the title document if you have it, or on insurance paperwork. The bill of sale should include the complete VIN with no abbreviations or omissions. Without the correct VIN, there's no way to confirm which specific vehicle was sold.

The year, make, and model of the vehicle should be listed. While the VIN technically identifies all of these details, including them in plain language makes the bill of sale easier for anyone reading it to understand at a glance. For example: "2015 Honda Civic" or "2008 Ford F-150 Truck."

The sale price or consideration must be documented. "Consideration" means what the buyer is giving in exchange for the vehicle—usually money. Write the amount in both numerals and words to avoid confusion (for example, "$5,500" and "five thousand five hundred dollars"). If the vehicle is being transferred as a gift or trade-in, the bill of sale should state that explicitly.

The date of the sale should appear on the bill of sale. This is the date the transaction took place or is taking place, not the date the paperwork is signed days later. Both the buyer and seller should sign and print their names on the document. Some sources recommend including driver's license numbers for extra verification, though Vermont law doesn't mandate this.

Practical takeaway: Before signing a bill of sale, go through a checklist: Does it have both names and addresses? Is the correct VIN present? Are year, make, and model included? Is the sale price clearly stated? Are the date and signatures there? If all these elements are present, you have a valid bill of sale that will work with Vermont's registration process.

How Vermont's DMV Uses the Bill of Sale During Registration

When you purchase a vehicle in Vermont and want to register it, the DMV needs proof that you own it. If you're buying from a dealer, they typically handle much of the paperwork and may submit documents to the DMV on your behalf. If you're buying from a private seller, you're responsible for getting the paperwork to the DMV yourself.

Free Guide to Aberdeen South Dakota DMV Locations →

The bill of sale serves as the DMV's documentation that the sale occurred. When you submit an application for a Vermont registration and title, you provide the bill of sale along with other required documents. The DMV staff review the bill of sale to confirm that the vehicle was transferred from the previous owner to you. This is part of verifying that the title can legally be transferred.

If you're registering a vehicle you purchased out of state, the situation is similar. You bring or send the bill of sale from the previous state's sale along with other documents to Vermont's DMV. The Vermont DMV will review it to confirm the chain of ownership before issuing a Vermont title and registration.

The bill of sale becomes part of your file with the DMV. It's kept as a record of the transaction. If questions ever arise about who owned the vehicle or when the ownership changed, this document provides the answer. If you later need to prove when you purchased the vehicle, the bill of sale is the document that establishes that.

For sellers, submitting or providing the bill of sale has a protective function. Once you've sold a vehicle and have a signed bill of sale, you can confidently move forward knowing there's a legal record of the transaction. If the new owner gets into an accident or receives a traffic ticket before changing the registration, the bill of sale protects you by documenting that you no longer owned the vehicle.

The DMV doesn't issue its own bill of sale form, which sometimes confuses people. This simply means you can create one yourself, use one provided by a dealer, or use a template that contains the required elements. The document doesn't need to be fancy or notarized to be valid under Vermont law, though notarization adds extra credibility if disputes arise.

Practical takeaway: Keep your copy of the bill of sale in a safe place—a file folder with your other car documents is ideal. You'll need it when you register the vehicle with the DMV, and you may need it later if you sell the vehicle, deal with insurance questions, or have to prove when you became the owner.

Common Situations Where Bill of Sale Details Change

Not every vehicle sale follows the same pattern, and understanding how to document different situations correctly prevents problems with the Vermont DMV later.

Get Your Free PS5 Cleaning and Maintenance Guide →

Private sales between individuals: When one person sells a vehicle to another person (not through a dealer), both parties should create a bill of sale. This is the most straightforward situation. The seller lists their information, the buyer lists theirs, and they document the sale price and vehicle details. Both sign it, and each keeps a copy.

Dealer sales: When you purchase a vehicle from a car dealership, the dealer provides a bill of sale as part of the sales documents. Dealerships are familiar with Vermont's requirements and typically include all necessary information. You should still review it to confirm the details are correct before signing.

Gift transfers: If you're receiving a vehicle as a gift—from a family member, for example—you still need a bill of sale for Vermont DMV purposes. However, the "consideration" section would state "gift" or "no consideration" rather than listing a dollar amount. Both the giver and receiver should still sign the document.

Trade-in scenarios: If you're trading in a vehicle as part of purchasing another one, the dealer handles the bill of sale for the new purchase. The old vehicle goes to the dealer as payment. The dealer's documents should reflect this transaction clearly.