Code of Vermont Rules › Agency 14 - AGENCY OF TRANSPORTATION › Sub-Agency 050 - MOTOR VEHICLES DEPARTMENT › Chapter 050 - VERMONT DEALER LICENSING AND SCHEDULE OF PENALTIES AND SUSPENSION › Section 14 050 050 - VERMONT DEALER LICENSING AND SCHEDULE OF PENALTIES AND SUSPENSION

Current through June, 2024
DEFINITIONS
Administrative Penalty shall mean a predetermined monetary
				penalty, suspension or written warning imposed from the Schedule of
				Administrative Penalties and Suspensions contained in Part B of this rule. The
				schedule does not supersede any penalties or sanctions established by
				statute.
Applicant shall mean a corporation, corporate officer,
				association, association officer, copartnership including silent partners,
				company, company officers, firm, officers of a firm, individual, or aggregation
				of individuals.
Application shall be a form prescribed and furnished by the
				Commissioner used for initial approval and renewal of dealer licenses and
				registrations.
Buyers Guide shall mean the vehicle disclosure form required by
				Federal Regulation.
Commissioner means the Commissioner of Motor Vehicles.
Date of Sale or Time of Sale or Transfer means the date when
				physical delivery of the vehicle to the purchaser occurs. Dealer shall be the
				same as defined in
				23 V.S.A. §
										4(8) and shall
				include:
* New and Used Car Dealer
* Motorcycle/Moped Dealer
* Farm Equipment Dealer
* Trailer Dealer
* Motorized Highway Building Equipment Dealer
* Finance Dealer
* Auction Dealer
Dealer Business shall include, but not be limited to, the
				buying, selling, leasing, exchanging, storage or repair of vehicles, selling
				vehicle accessories or parts, detailing of vehicles or painting of
				vehicles.
Dealer Records shall be those records required by the
				Commissioner under 23 V.S.A. Subchapter 4 of Chapter 7 and shall also include
				bills of sale, odometer disclosure statements, vehicle lease agreements, motor
				vehicle retail installment contracts, Buyer's Guides, temporary plate logs and
				in-transit plate logs.
Department shall be the Department of Motor Vehicles.
Engaged in the Business shall be the same meaning as in
				23 V.S.A. §
										473, except there are no minimum sales
				standards for other than new and used car dealers.
License Certificate shall be the certificate of designation
				issued by the Department to the dealer to verify the dealership is properly
				licensed as a dealer in this state.
Reinstate means to restore any license, certification,
				registration or privilege issued by the Department to a dealer following the
				suspension of such designation.
Revoke means to withdraw permanently by formal action of the
				Commissioner any license, certification, registration or privilege issued or
				granted by the Commissioner.
Primarily shall mean more than 90% of the gross receipts of the
				dealer business.
Serious Violation means three or more violations of Category 1,
				Category 2 or any combination thereof listed in Part B of this rule occurring
				during any twelve month period.
Suspend means to withdraw temporarily by formal action of the
				Commissioner any license, certificate, registration or privilege issued or
				granted by the Commissioner.
Supplemental Documents means information or certifications
				required by the Commissioner to make a determination of approval/disapproval of
				an initial application or renewal of a dealer registration and license.
Transporter shall be the same as defined in
				23 V.S.A. §
										4(42).
Violation shall be those listed in Part B of this rule in
				Category 1, Category 2, Category 3, and Category 4.
Dealer Licnese Requirements
Part
			 A. DEALER LICNESING
Dealer Licnese Requirements
I Application
A. The application
			 must contain accurate information. All declarations made on the application
			 shall be made under oath. The application must be signed and dated by the
			 applicant. Providing false or inaccurate information can result in denial,
			 refusal, cancellation, suspension and/or prosecution under penalty of
			 23
			 V.S.A. §
												202.
B. Initial dealer registration shall be for
			 one year, and may be renewed for two (2) years.
C. Supplemental Documents
1. Proof of Zoning Compliance (or signed
			 statement from municipal government agent stating no zoning exists), required
			 for INITIAL application.
2. Proof
			 of compliance with
			 23
			 V.S.A. §
													800 Maintenance of Financial
			 Responsibility in the minimum amounts of $ 25,000.00 for one person and $
			 50,000.00 for two or more persons killed or injured and $ 10,000.00 for damages
			 to property in any one accident. Must be submitted with application.
3. A Bond, Letter of Credit or Certificate of
			 Deposit as required by the rule on Motor Vehicle Dealer Bonds. Must be
			 submitted at time of approval of the dealer/applicant by the
			 Commissioner.
4. Proof of
			 Ownership/Lease of Property for which registration is being applied.
a. a statement that the deed is recorded in
			 the land records of the town including the book and page, or
b. copy of along term lease to cover the
			 period during which the dealer registration will be valid. Leases for a term
			 greater than one year are to be accomplished by a deed that is recorded;
			 27 V.S.A. §
														304.
5. Copy of Vermont Tax Number Certificate. If
			 exempt, the dealer applicant must submit proof of exemption.
6. Applicant shall attest at time of initial
			 and renewal application that he/she is in good standing with the Vermont Tax
			 Department. If not in good standing, applicant will be required to come into
			 good standing before approval will be given by the Commissioner.
7. Applicant shall attest at time of initial
			 and renewal application that he/she is in good standing with the Vermont Office
			 of Child Support. If not in good standing, applicant will be required to come
			 into good standing before approval will be given by the Commissioner.
8. Except for Finance and Auction dealer, a
			 report from a licensed Credit Bureau will be submitted by the dealer applicant
			 with each initial application in addition to a bond, letter of credit or
			 certificate of deposit. Report from a licensed Credit Bureau will not be
			 required for renewal.
9. Initial
			 applications shall be accompanied by both a completed Vermont Dealer's License
			 Background Information form and Authority to Release Information form for each
			 applicant.
10. For New Car Dealers
			 only, a copy of the Franchise Agreement shall accompany the initial
			 application. Renewal application shall require the dealer applicant to attest
			 the Franchise Agreement is still in effect.
D. Conditions for application.
To obtain or retain a dealer license all applicants listed on
				the application must meet the following requirements:
1. For initial applicants only, has had no
			 previous record of criminal convictions for extortion, forgery, fraud related
			 crimes, larceny or embezzlement in this or any other jurisdiction.
2. Applicant has had no previous record of
			 willful violations of dealer laws or regulations in this or any other
			 jurisdiction.
3. Applicant has had
			 no civil judgments that are the result of willful intent to commit fraud or
			 misrepresentation.
4. Applicant has
			 no history of violations of issuing nonnegotiable, insufficient funds, account
			 closed, or counterfeit checks within the past 5 years.
5. The dealer shall be required to maintain
			 records as defined by this rule.
6.
			 Renewal applicants shall pass a dealer records audit completed by the
			 Commissioner or a representative thereof. The Commissioner may permit dealer
			 applicants to conduct a selfaudit.
7. Renewal applicants for "New" and "Used"
			 car dealers shall sell a minimum of twelve pleasure cars or motor trucks owned
			 but not registered by the applicant during the previous registration year or
			 twenty-four such vehicles within the previous two registration years. Vehicles
			 that are to be scrapped, dismantled or destroyed cannot be included as
			 qualifying vehicles.
8. The dealer
			 shall notify the Commissioner in writing at the time of the change if any
			 changes to any of the individuals listed on the application are made.
9. Finance and Auction Dealer are exempt from
			 the requirements of 1, 2, 3, 4, and 7 above.