If you purchased a car from a dealer or private seller out of state and need to register it in Vermont, you’ll have to pay the tax difference, show the bill of sale and title, and pay the registration fee.

It can seem like there’s no end to all the hoops you have to jump through when you’re buying a car—and it gets even more complicated when you’re purchasing a vehicle from out of state.

Here to demystify the process for Vermont drivers is the trusted

car insurance

broker app

Jerry

. We’ll cover the registration process, the tax differences, and what you need to buy a car in Vermont from another state. As a bonus, we’ll also show you how to lower your

Vermont car insurance costs

, too!

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How to buy a car out of state as a Vermont resident

If you’re a Vermont resident but you just bought a car out of state, navigating the registration, taxes, and title processes to switch it over can feel tricky. Don’t sweat it though—this is pretty common in Vermont since it doesn’t take long to drive to another state.

If you found a sweet deal on a car from

New Hampshire

Massachusetts

New York

, or another state, you’ll have to go through the process of registering it in Vermont within 30 days. If you’re new to the state, don’t worry—you don’t have to be a Vermont resident or carry a Vermont license to register your car in the state.

The process to register your out-of-state car will differ depending on whether it’s new or used and where you bought it:

For a new car from a dealer, you’ll need to have a Manufacturer’s Certificate of Origin (MCO) (also called a Manufacturer's Statement of Origin).

For a used car purchased from a dealer, you’ll have to show a

signed-over title

For a car purchased from a private party, you’ll need a signed-over title and a vehicle identification number (VIN) verification, which can be completed by a designated DMV agent or Vermont law enforcement officer.

For all out-of-state cars, you’ll also need the following documents to complete the Vermont registration process:

Proof of car insurance

A completed Registration/Tax/Title Application (

Form VD-119

)

A Bill of Sale and Odometer Disclosure Statement (

Form VT-005

)

Along with these documents, you’ll also need to bring payment for the Vermont registration fee. For most cars, this costs $76 for one year or $140 for two, but electric vehicles will be $74 for one year and $136 for two years. All Vermont DMV locations will accept credit card, check, or money order.

While registering a car in Vermont can typically be done by mail, you’ll have to go to a Vermont DMV in person to register a vehicle bought from an out-of-state seller. Determining which forms you need for registration could be tricky to figure out, but the Vermont DMV has a handy

Required Documents Wizard

to help you out.

In addition to registration, you’ll also have to pay the necessary

Vermont taxes

on your out-of-state vehicle. If the state you bought your car in has a lower sales tax than Vermont’s 6%, you’ll have to pay the 6% Vermont Use Tax on your car. If the state you purchased your car in has a higher sales tax, you don’t have to pay Vermont tax—but you won’t get refunded for the difference, either.

If you purchased a used car from out of state, you’ll need to be aware of the license plate laws of the state you bought the car in. Some states consider license plates to be state property and require drivers to turn them in or mail them to the DMV when the car is sold—otherwise, you could face hefty fines, extra taxes, or even license suspension.

MORE:

Vermont car sales tax

How to buy a car in Vermont if you live out of state

So what if you’re not a Vermonter but want to buy a car there? The process to register your vehicle will require different documentation and processes, but overall, you’ll likely need much of the same documentation listed above. For instance, New Hampshire requires a signed-over title, Certificate of Origin, VIN verification, and a $25 fee to register all out-of-state vehicles.

No matter what state you’re going home to, you’ll likely need a valid bill of sale from your vehicle purchase to start the registration process. You might also have to either pay Vermont’s sales tax or pay the difference between Vermont’s sales tax and the sales tax of the state you’ll be registering the car.

Before you head back to your home state, be aware that Vermont is a plate surrender state. If you bought a used car in Vermont, that means you’ll have to return its license plate to the DMV and arrange a temporary license plate for your drive home.

MORE:

Vermont license plates

What if I don’t have a physical title?

If you don’t have a title for the car you’re registering in Vermont, there’s an easy fix as long as you have the bill of sale. All you have to do is present the bill of sale to your DMV and pay the registration fee! Then you’ll be issued a legal title in your name.

Don’t have a bill of sale either? If you don’t have all the required documentation to register your car in Vermont, the DMV may issue you a

temporary registration

while you get it sorted out.

MORE:

Car loan in Vermont 2022

Tips for buying a vehicle out of state

Purchasing a vehicle out of state is a good move if you found a lower sales price or you discovered your dream car that isn’t available in your state. However, it does complicate the buying process, so here are a few tips to remember throughout your car-buying journey:

Always check the vehicle history report. This should always be on your to-do list, but it’s especially necessary if you’re buying a used car from a private seller. Services like

CARFAX

provide you with the vehicle’s total history, including any accidents or other concerns.

Be familiar with your home state’s vehicle sales tax laws. As we mentioned above, the amount of tax you pay on your car will depend on the state you buy it in—but you’ll be paying Vermont’s 6% sales tax at a minimum.

Schedule your vehicle inspection in your own state. You’ll need to get your vehicle inspected within 15 days of registration in Vermont—and the state’s

inspection requirements

do include emissions testing.

Secure a car insurance policy before driving off in your new car. Anything can happen when you’re driving your new car back to your home state, so you’ll need protection on the road. In Vermont, car insurance is

legally required

to be on the road.

Figure out your financing. If you’re planning to finance a car, make sure the payment will be accepted at the out-of-state dealership. In some cases, you may have to send over certified or wired funds ahead of time.

MORE:

How to find temporary car insurance in Vermont

How to save on car insurance in Vermont

Many car dealerships require you to show proof of car insurance before you can even complete the purchase….especially if you’re financing your vehicle. Even if your other paperwork is up in the air, finding a good

car insurance

policy isn’t a task that can be put off. Comparing quotes doesn’t have to be a time-consuming and tedious task, though—not when you use the

Jerry

app to shop.

Jerry knows that finding the right insurance company can make all the difference, so you’ll get personalized quotes—sourced from over 55 reputable providers—sent straight to your phone in a matter of 45 seconds. With Jerry’s

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