Auto Loan Basics

Auto Loan Basics

For your first car loan or fifth, we'll help make it a smooth ride.

Let us help with your car shopping, too! Check out the links for our interactive New Car Buying Coach, Used Car Buying Coach, and our Car Buying Podcast.

Ready to find the perfect car? Use our Online Auto-Buying Tools to search by make and model or by vehicle type to get started. Then research your choices to find the right car at the right price.

Loan Options & Details

New Auto Loans

  • the vehicle has never been titled other than with dealer
  • 100% of purchase price less rebates and incentives will be financed including tax, title,
  • registration and warranty (less any rebates)
  • maximum term of 7 years
  • minimum loan amount with seven years is $25,000
  • collision and comprehensive insurance required
  • Credit Disability and Credit Life Insurance available
  • GAP protection available

Used Auto Loans

  • finance up to 100% of the retail value as quoted in the NADA guide
  • minimum loan amount is $2,500
  • 2013 - 2015: maximum term of  6.5 years
  • 2012 - 2015: maximum term of 5.5 years
  • 2011 - 2015: maximum term of 4 years
  • Any Model Year-2015: maximum term of 2 or 3 years
  • add 1% to stated rates on untitled collateral with a maximum term of 3 years
  • collision and comprehensive insurance required
  • Credit Disability and Credit Life Insurance available
  • GAP protection available

Learn DMV Requirements

The dealer charges you a fee to do the paper with DMV. If you are the ultimate DIY person here are the steps:

New Auto in Vermont

  1. Obtain the certificate of origin
  2. Go to State police and get VIN verification- it is free!
  3. Go to DMV with the purchase and sale, the certificate of origin and a completed State of Vermont registration form
  4. Pay the DMV tax, title and registration (you do not pay the dealer the tax title and tag fee as you are completing the registration yourself)!
  5. Your lender might want to make the check for taxes to Vermont Department of DMV that is fine the DMV will take this check.
  6. DMV will give you a temporary registration.
  7. Your plate will be processed and placed in the mail; usually you will receive within 2-3 weeks.
  8. If there is a lien holder listed under section 5 then the title will be sent directly to the lender, if not then the title is sent to your home address.
  9. Happy Motoring!

Used Auto in Vermont

Same as above but:

  1. Instead of a certificate of origin you will bring in the title
  2. The title will need to be signed and transferred to you on the back by the seller
  3. A signed bill of sale and odometer statement is required.
  4. You will not need the VIN verification unless you purchase the vehicle out of state.
  5. The taxes will be based on the purchase price or the value whichever is higher unless you meet DMV guidelines on selling to a close relative. i.e. parent selling car to child.
  6. If a tax credit on selling the vehicle is warranted see DMV website.
  7. If you have an error the back of the title you will need to complete a title alteration form.
  8. If you need a duplicate title, because you misplaced yours, you will need to complete a duplicate title form.

Maintain Your Car & Reduce Driving Costs

Learn About Maintenance and Ownership Costs