Home » Articles » Titles » Top 5 Tips for Using the Vermont Title Loophole
The Vermont DMV has been a key player in helping drivers across the country get a title for their vehicle in their home state. For many years the Vermont registration process, also known as the Vermont title loophole, has been used to get a title for a vehicle even if the owner resides out of state. No other state offers this type of title method, especially not for out-of-state residents. The Vermont title loophole has two main conditions: the vehicle must be at least 15 years old to qualify and you must have a bill of sale. If your vehicle meets those core conditions, these 5 tips will be your guide to successfully obtaining your title with this method.
The Vermont DMV offers a temporary registration method where users can apply online and print out their temporary license plates at home. This is useful for Vermont residents, but will could be detrimental to those who are not. If you use this temporary method, you will be required to submit form VD-119 to the Vermont DMV within 24 hours of registration. Failure to do so in that time frame will result in your original registration being revoked, thus delaying your ability to get permanent registration.
You may have received the license plates, but you should not put them on your vehicle because they will likely not be valid in your state. All states have statutes that require new residents to transfer their vehicle registration and driver’s license to their current state within a specific time frame. If you’re using this title method, you’ve probably lived in your state for longer than the specified time so putting out-of-state plates on your vehicle would likely be illegal in your state and you may be ticketed or fined.
We are not lawyers and we are not giving legal advice, always check with your state laws to verify before proceeding.
With today’s technology, the DMV is no longer manually sifting through all of the documents they receive. Most DMV’s have some sort of automated system that reads the information on a document and loads it into their system. Typing your title application can allow for quicker processing times, while handwritten applications often are illegible for some systems and may result in longer, manual processing.
Many states are familiar with the Vermont title loophole, but it’s important to be prepared in the event your DMV is not. The Title Informational Bulletin from the state of Vermont describes how the process works and states that the documentation you’re providing represents their state’s version of a title. It states that vehicles more than 15 years old cannot receive a title but can be registered and that registration is equivalent to a certificate of ownership in the state of Vermont.
The book value of your vehicle is how much your vehicle is worth on the market today. To check the book value of your vehicle, we recommend using the NADA value. The Vermont registration process uses the book value of the vehicle to calculate the amount of taxes owed. We recommend thoroughly reading through the options and making sure you’re selecting the correct vehicle and price. If your calculation is under, the Vermont DMV will send you a revised invoice for adjustments. However, if you overpaid, that money will not be refunded.
Here’s a secret: If you transfer your registration immediately, there may be a way to get a refund from some of your Vermont fees.
The Vermont title loophole is just that: a loophole. A loophole that allows vehicle owners to get a title for their vehicle without spending countless hours communicating with the DMV. This method has been used for many years by vehicle owners across the country and has been mentioned by a variety of automotive industry experts such as Jalopnik and Hagerty. Get started with us here and let us professionally prepare your forms for success using the Vermont title loophole.
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