Buying a Vehicle in Maryland

Title Verification

For a smooth car-buying experience, buyers should exercise caution and conduct proper research when dealing with a dealership. It is crucial to engage with a reputable and licensed dealership. It involves verifying the active status of the dealer's license with the Maryland MVA.

The MVA maintains a comprehensive list of licensed vehicle dealers, which buyers can consult to confirm if their prospective dealer is included and authorized to operate. This list can be accessed through the "Dealer Provider Search" tool available on the myMVA Services platform.

Furthermore, buyers are strongly advised to thoroughly research the dealer's reputation. They can do it by examining reviews and feedback from previous customers.

Buyers should also note that a reputable dealership should provide transparent and accurate information concerning the vehicle's history, pricing details, and any warranties. So, buyers must thoroughly check these details. By doing so, they can make informed decisions and avoid potential issues that may arise during the purchasing process.

Buyer's Guide

The Federal Trade Commission (FTC) mandates that dealerships always provide buyers with a Buyer's Guide of the vehicle they plan to purchase. The Buyer's Guide is typically displayed on the window of each vehicle, allowing buyers to easily access and review the information.

This guide aims to help buyers better understand the full scope of costs and the condition of the vehicle they are considering purchasing. When checking the guide, buyers must check for the following information:

• Make, model, and year of the vehicle
• The vehicle's previous usage history
• Details about how the dealer acquired the vehicle
• Disclosure of any significant mechanical issues with the vehicle, including those that have been repaired
• Identification of any prior significant damage caused by fire, flood, or collision
• Any warranties offered by the dealer for the vehicle being purchased

Transfer of License Plates

In Maryland, vehicle owners can transfer their license plates from one vehicle to another only if the vehicle meets these criteria:

• The original vehicle must have been sold, traded, junked, or discarded.
• The new vehicle must be registered in the same name as the original license plates.
• Both vehicles must have the same registration classification.

Buyers can process the transfer of their existing license plates once they finalize the purchase of their new vehicle. They can request the transfer when they register their new car under their name.

However, dealers may also offer to handle the license plate or tag transfer when they process the vehicle registration for the buyer. Only dealers participating in the MVA's electronic registration and titling (ERT) system can facilitate a license plate transfer for their buyers.

In this case, the buyer must confirm if the dealer can provide this service. Once confirmed, the buyer must provide the dealer with the registration document and title from their previous vehicle.

The dealer will provide the buyer with the Application for Certificate of Title (VR-005) form. The dealer may also ask the buyer for a notarized Power of Attorney (VR-470) form to process the registration on their behalf.

The buyer must complete the forms and give them to the dealer. The buyer must also pay the dealer the applicable license plate transfer fee of $10 and other fees. The dealer may provide the buyer with a temporary registration permit that they can use for up to 60 days.

Bill of Sale

In specific circumstances, sellers must provide the buyer with a comprehensive MVA Bill of Sale (VR-181) in Maryland. It applies when the vehicle being sold meets the following conditions:

• The vehicle is newer than seven years old.
• The vehicle's sale price is at least $500 lower than the book value.
• The buyer explicitly requests that the excise tax calculation be based on 6% of the sale price rather than the book value.

The MVA Bill of Sale serves as a record of the transaction and includes important details, such as:

• Names of the seller and buyer involved in the transaction
• The final purchase price of the vehicle
• Specific vehicle information, including the year, make, model, body type, and color
• The vehicle identification number (VIN)
• An odometer disclosure statement provides accurate mileage information
• Signatures of both the seller and the buyer acknowledge the sale's completion

Odometer Disclosure Statement

The VR-181 form provided by dealers to buyers includes a section for disclosing the vehicle's odometer reading. Sellers and buyers must double-check that the mileage indicated in this section is accurate.

The National Highway Traffic Safety Administration (NHTSA) recently introduced updated requirements for disclosing odometer readings during vehicle sales transactions. Buyers who seek more comprehensive information on these requirements can access and download the NHTSA's Odometer Disclosure Requirements - Final Rule document.

Vehicle Inspection

All used cars in Maryland that are titled and registered are subject to a mandatory safety inspection. These inspections are conducted by licensed Maryland inspection stations, including dealers, specialized service centers, or service stations.

Vehicle owners can use the Maryland State Police (MSP) e-Inspection Search & Station Locator service to locate a suitable and authorized inspection station.

In Maryland, it is the responsibility of the sellers to have their vehicles inspected and obtain the necessary inspection certificate. Sellers can initiate the inspection process by accessing the MSP's Safety Inspection System. Sellers must check that the VIN specified on the inspection certificate matches the VIN of the registered vehicle.

Once the inspection is complete, the seller will obtain a Safety Inspection Certificate from the MSP. The buyer can use this certificate when registering the newly purchased vehicle in their name. This certificate is only valid for 90 days upon issuance. Buyers must finalize their purchase and register the vehicle under their name before the certificate expires.

30-Day Temporary Permit

Note that if the vehicle purchased needs repairs before it can be successfully registered, the buyer can purchase a temporary permit from the MVA that lasts 30 days when titling the vehicle. They can use the permit to inspect their vehicle and wait for the inspection certificate.

However, buyers must note that if a temporary permit is necessary, they must also secure a Temporary Inspection Waiver (VR-129) from the MVA.

Title and Registration

As per Maryland law, if the buyer purchases a vehicle from another state with an out-of-state title, they must surrender their foreign title. Then, they must complete Form VR-005 to apply for Maryland title. They can initiate the application through the myMVA services or visit any MVA branch office in person.

If the seller has an out-of-state title and a Maryland title for the same vehicle under the same name, they must surrender the foreign title when returning to Maryland. They must also obtain a duplicate Maryland title, which can be done conveniently online through the myMVA Services portal or by visiting any MVA office in person.

Once the duplicate title is obtained, the seller can sell the vehicle and provide the duplicate to the buyer.

Obtaining a Duplicate Title

To obtain a duplicate title, the seller has several application options available:

• Online application through the myMVA Services portal
• Application through an MVA Self-Service Kiosk at any MVA branch office
• Application through an MVA-approved tag and title service utilizing the "Dealer Provider Lookup" tool on the myMVA Services portal

When applying for a duplicate title in person or by mail, the seller must complete the Application for Duplicate Certificate of Title (VR-018) form and pay a duplication fee of $20. The seller must submit the completed form and their valid driver's license or Maryland ID.

If applying by mail, the seller can send the documents to the following address:

For further inquiries, sellers and buyers can call MVA Customer Service at 1-410-768-7000.

24-Hour Temporary Registration

Vehicle owners in Maryland have the option to obtain a 24-hour temporary electronic or digital registration from the MVA. This temporary registration allows individuals who have recently purchased a vehicle from out of state to legally operate it on Maryland highways for 24 hours.

Note that only one registration can be given per vehicle sales. This temporary registration is particularly useful for individuals who need to move their vehicle from one location to another in Maryland.

Note that the registration is only for passenger cars, multipurpose SUVs, pickup trucks, and motorcycles. Salvaged vehicles cannot receive a 24-hour registration. For more comprehensive information on the inspection process for salvaged vehicles, refer to the "Salvaged Vehicle Inspection" page on the MVA website.

Title Verification

Buyers must carefully verify if the private seller legally owns the vehicle they are selling. Buyers can check the vehicle's title for the following details:

Title in Possession

The current vehicle title on sale must be assigned to the seller. However, if the vehicle is from out of state and has no title, the seller must provide the vehicle's registration document as proof of ownership.

Lien Check

In cases where the vehicle's title indicates the presence of an existing lien, it is necessary to provide proof of its release. Vehicles with Maryland titles can be submitted by submitting a completed Security Interest Filing Statement (VR-217) or an official letter from the lien holder confirming the release of the lien.

A release letter or the lien holder's signature on the title will suffice for out-of-state titles. However, there are situations where the seller may not have their title if the lien holder is located out of state. In such cases, the MVA can provide the seller with an Out-of-State Lienholder Letter (VR-056) for the lienholder to request that the out-of-state title be sent to the MVA.

Upon receiving the title document, the MVA will notify the seller in writing or by phone to confirm the receipt of the title.

VIN Verification

Buyers can perform a VIN check on the vehicle they are interested in purchasing. While Maryland does not offer a dedicated online service for conducting a VIN check, sellers can utilize the free tools from reputable organizations such as the National Highway Traffic Safety Administration (NHTSA) and the National Insurance Crime Bureau (NICB).

The NHTSA's VIN Decoder and the NICB's VINCheck Lookup Tool are accessible online and offer valuable information about the vehicle's background. These tools assist in identifying various details about the vehicle, including theft records, title status (clean, salvage, or rebuilt), accident and damage history, and more.

Vehicle History Reports

Acquiring a comprehensive vehicle history report is another crucial step when buying a vehicle in Maryland. This report provides buyers with valuable insights into the vehicle's past.

For accuracy and legality, buyers must only obtain these reports from data providers approved by the National Motor Vehicle Title Information System (NMVTIS). These approved providers offer vehicle history reports that contain vital information, including:

• Current title status and ownership history
• Date of latest title issuance
• Official title designations (e.g., salvage, rebuilt)
• Odometer reading
• Records of total loss or salvage declarations

Vehicle Inspections

As mentioned, Maryland requires vehicles titled and registered in Maryland to be inspected. Usually, the seller gets the vehicle they are selling inspected by licensed inspection stations. Then, they will get a certification from the MSP. The seller can then give this certificate to the buyer when they register their purchased vehicle.

Bill of Sale and Odometer Reading

The seller must provide the buyer with a Form VR-181 as a record of the sale transaction. This document includes the odometer reading of the vehicle for sale.

The buyer must also double-check that the seller adheres to the NHTSA's updated requirements for disclosing odometer readings.

Ownership Transfer

Upon completing the purchase, the buyer is required to register the vehicle in their name within 30 days. To initiate this process, the buyer must gather all necessary documents, including the released title, bill of sale, completed registration form, and other necessary paperwork. These documents should then be submitted to the local MVA branch office.

The buyer will be responsible for paying the applicable fees during the registration process. To determine the exact fee amounts, refer to the "What Are the Fees for Buying a Car in Maryland?" section of this guide.

If the seller has misplaced the vehicle's title, they must obtain a duplicate before transferring ownership to the buyer.