Is Your Vehicle Eligible For The Vermont Title Loophole?

If you’re considering using the Vermont title loophole to obtain proof of ownership for your vehicle, ensure your vehicle is eligible for this process. When using this title recovery method, the vehicle’s year, physical condition, and insurance are all factors to consider before filing.

The vehicle must be at least 15 years old.

Vermont is a non-titling jurisdiction and does not produce title certificates for vehicles that are 15 years old or older. When a vehicle that is 15 years old or older applies for title and registration, they receive a registration that is the state’s equivalent to a title and serves as proof of ownership. If your vehicle is less than 15 years old, this method of title recovery will not work.

The vehicle must be in good mechanical condition and properly equipped.

If your vehicle is in parts, disassembled, missing proper equipment, not operable, or otherwise not in good mechanical condition, it is not eligible to be registered in Vermont. On the Vermont Registration Tax & Title Application (VD-119), the first line of the agreement states, “The owner certifies that this vehicle 1) is properly equipped and in good mechanical condition….” By signing this form, you swear under oath that the vehicle is properly equipped and in good mechanical condition. otherwise, the application is invalid, and you can be legally penalized. 

Often, people try to make the application anyway. However, they’ll run into problems when paying sales tax. Vermont calculates the sales tax owed based on the NADA book value of the vehicle in complete working condition. If the vehicle is in parts, the owner will try to get the value lowered by sending in pictures of the vehicle or contacting the Vermont DMV directly. In these cases, the Vermont DMV will thank them for clarifying the vehicle’s condition and cancel the registration application. Sometimes the application can be redone after the vehicle has been assembled and inspected by an authorized agent in Vermont, but that invalidates the point of not having to go to Vermont in the first place. If your vehicle is not properly equipped and in good mechanical condition, the Vermont DMV will not accept your application.

The vehicle must have liability insurance at the time of the application.

When applying for registration in Vermont, you must have liability insurance for the vehicle. Again, at the bottom of the VD-119 form, you’re signing under penalty of perjury that you have liability insurance. If it comes back that you didn’t have this insurance but you signed that you did, your registration can be revoked.  

If you’re trying to register a project car or a car in parts, the Vermont title loophole is not a method available to obtain a title. Remember, the Vermont process is only one way out of many ways to get a title and isn’t always the best method for every situation. Before looking at this process, consider another method of title recovery that may be more direct.

Want a CarTitles.com professional to do it for you?

For as little as $159 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!

Select your title recovery method:

Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+