Vermont DMV centralizes dealer oversight, expands fraud detection and dealer services

Lieutenant Jeremy Desjardins, section chief of the Vermont DMV Enforcement and Safety Business Services Unit, told the House Transportation Committee on April 17 that the agency has centralized dealer licensing and investigations into a new Business Services Unit and has expanded audits, outreach and fraud detection tools.

Desjardins said the unit, created in July 2024, combined dealer processing, field inspection and enforcement work and established a dedicated phone line and a single processing location so dealers reach a live, knowledgeable person rather than being routed through multiple offices. "I created a 1 stop shop," Desjardins said, adding that dealers "love it" and that the unit has cut processing times from "2 to 4 week[s]" down to "0 to 5" days at the maximum backlog.

Why it matters: Vermont licenses about 567 dealers of various types, and dealer filings account for substantial daily revenue to the state. Desjardins told the committee that some dealers submit hundreds of thousands of dollars in tax and fees in a single month and that improved processing and auditing helps ensure the state receives correct payments and reduces ripple effects when paperwork is lost or delayed.

Key elements of the Business Services Unit

- Centralized dealer processing: Desjardins described a supervisor-led processing team of about eight staff who handle dealer paperwork and an embedded dealer clerk function to triage complaints and route matters to field inspectors or enforcement staff as needed.

- Field inspectors: The DMV now has three dealer field inspectors covering the state in roughly three geographic zones so inspectors can reach dealers within about an hour. Desjardins said inspectors conduct setups and closeouts of dealer businesses, perform regulatory audits, handle tax and plate questions, and can issue administrative penalties under the commissioner—s authority.

- Technology and myDMV: The DMV has launched a myDMV portal for dealers to view inventory, dealer plates, balances, order supplies, make payments and receive notices. Desjardins said the portal allows monthly audits and reporting the agency did not have under the old legacy system.

- Public-facing map and outreach: The department plans to publish a dealer-inspector map on its website and later a virtual map showing towns, dealer contacts and assigned inspectors. Desjardins said the agency is conducting an "audit initiative of 2025" to reconnect with dealers and improve outreach.

Fraud, trends and enforcement

Desjardins detailed several fraud risks the DMV is confronting, including forged or fake manufacturer certificates of origin, cloned or stolen vehicles with altered VINs, odometer rollback enabled by digital systems, fictitious or falsified residency claims, removal of liens, and overseas actors creating mirror dealership websites to defraud buyers.

He said linking Vermont to the National Vehicle Title Information System (referred to in the presentation as Navitas) has been a "game changer," allowing staff to compare title histories across states, spot discrepancies and screen for theft or other title irregularities before issuing a Vermont title.

Regulatory changes and forms

Desjardins noted two statutory and program changes discussed in the presentation: the repeal of a 15-year title rule in 2024, which created a transition period for some vehicles previously accepted on bill of sale, and a legislatively directed used-vehicle inspection disclosure form that the DMV and the Vermont Automobile Dealers Association expect to implement by July 2025. "We wanted the consumer to know," Desjardins said of the disclosure, adding the form was developed with dealer input to make it practical for sales workflows.

Operational details and capacity

Desjardins described volumes and processing details: roughly 567 dealers statewide; a processing team of eight (one supervisor and seven staff) handling dealer transactions; three field inspectors statewide; daily mail batches ranging from about 100 up to several hundred transactions and periodic surge days; and monthly auditing of dealer submissions. He gave examples that in January one dealer remitted $202,000 in tax and fees and another $238,000. He said a single staff member in the processing unit may handle $30,000 to $40,000 in revenue per day.

Plans and limitations

The DMV is piloting additional changes including electronic submission of dealer transactions, farther integration of lien data across states, expanded fraud-detection training for front-line staff, and exploration of electronic titling. Desjardins cautioned that some matters — such as online sales where the sale location, IP address or buyer location may be unclear — raise jurisdictional and consumer-protection questions that sometimes require referrals to the state Consumer Assistance Program.

Committee questions and public-facing information

Committee members asked whether the DMV maintains a public database or rating of dealers; Desjardins said the agency does not publish dealer violation ratings, but maintains internal files and that some enforcement records are time-limited, similar to traffic records. He also confirmed the agency plans to make the inspector map public and to continue outreach and training efforts.

Taper: Desjardins said the one-stop approach and the new staffing model have substantially cut processing times and improved the DMV—s ability to detect and investigate fraud. He told the committee the unit will continue to refine tech tools, reporting and outreach as the DMV moves further into modernization projects for driver and vehicle services.