Consumer Title Resource | Since 2009!

Is The Vermont Title Loophole Cancelled Really?

Unraveling the Vermont Registration Loophole
For years, individuals exploited the Vermont registration loophole to obtain titles for vehicles with defective paperwork. This involved a complex process of registering in Vermont before transferring the registration to their home state. However, recent changes in requirements have left many wondering if the Vermont title loophole still exists.

The Evolution of the Vermont Loophole
Initially, the loophole was a common practice, allowing people to sidestep title requirements in their home states. However, approximately three years ago, other states began raising concerns about the process being used to evade their own regulations. In Florida, for instance, the state issued a fraud alert for Vermont registrations, marking a significant turning point.

State opposition and federal pressure
Florida, among other states, declared Vermont registrations obtained through this loophole as fraudulent, prompting an immediate shift in policy. Both states and the federal government pressured Vermont to alter its requirements, resulting in the introduction of new prerequisites for out-of-state residents.

The Current Requirements: Out-of-State Registration Certification
To apply for a Vermont registration now, individuals must obtain an out-of-state registration certification, signed by their home state’s motor vehicle department. This certification confirms that the home state does not mandate vehicle registration and grants permission for out-of-state registration. While obtaining this certification may theoretically be possible, the practical challenges are significant.

Challenges in Obtaining Certification
In reality, securing the necessary certification from a state’s DMV is a daunting task. Most states are unwilling to sign the form, effectively closing the door for individuals residing outside Vermont. Even if technically possible, attempting to register a vehicle in Vermont without a Vermont driver’s license is impractical.

Implications of the Policy Change: Vermont Loophole in Limbo
While the Vermont registration process technically still exists, the practicality of its application is severely limited. Non-residents without a Vermont driver’s license face insurmountable obstacles, rendering the Vermont loophole almost obsolete.

Exploring alternative methods
Despite the closure of the Vermont loophole, alternative methods for obtaining titles exist. These methods, often more affordable and efficient, were available even before the recent policy change. Interested individuals can explore these options on our website, ensuring a smoother and more straightforward process.

Pre-existing Challenges with Vermont Registration
Even before the 2023 policy change, we advised against using the Vermont loophole due to its inherent challenges. Issues such as a higher sales tax, additional registration fees, and potential difficulties with state acceptance made it a less favorable option.

Consequences for Past Users
Reports suggest that individuals who utilized the Vermont registration loophole in recent years are facing repercussions. Some states are revoking titles obtained through this method, prompting individuals to go through the standard title acquisition process.

Vermont Loophole: A Chapter Closed
In conclusion, the Vermont registration loophole is effectively closed due to the stringent requirements and state opposition. Our website,, provides valuable information on alternative methods for obtaining titles, ensuring individuals can navigate the complexities of the process effectively. Whether handling the process independently or seeking assistance, our resources aim to make the title acquisition journey smoother for all.

Watch our YouTube video:

Have Title Questions? Talk to a Car Title Expert.

Book a consultation with a Car Title Expert from to get personalized guidance on your title recovery journey.

Don’t let uncertainty hold you back. If it’s your car, you deserve a title.

Share this article!

Check Your VIN Instantly:

Powered by