The seller needs to sign the title of their vehicle over to the buyer, which is why in private vehicle sales the seller is generally the party that does the legwork in ownership transfer. However, the buyer will need to perform quite a few steps as well to legally register the vehicle in

their name.

Things are different if you’re selling a vehicle to a dealership. Dealerships have teams of people who specialize in things like title transfers. When you sell your car to Easterns Automotive Group or through DirectCarBuying.com, we’ll handle all the paperwork so all you need to do is sign and cash your check.

Transferring Vehicle Title and Registration in Maryland

You’ll need to not only transfer the title for a private sale but also get a MVA Bill of Sale notarized for the six percent sales tax. Technically, this sales tax is coming out of your end as the seller.

Both the buyer and the seller will need to sign the MVA Bill of Sale. In addition to listing the purchase price on the bill of sale you might also need to include additional documentation to verify the amount of money exchanged during the transaction. 

It’s tough to get around the six percent tax. Maryland has written the law so you can’t get away with doing something like only charging a dollar officially and then just exchanging cash under the table.

If the normal six percent tax isn’t sufficient, the tax will be based on:

• The vehicle make and model’s valuation based on accepted publications for used car values (i.e. Kelley Blue Book)
• The valuation should be adjusted, either up or down, based on whether the vehicle’s mileage is higher or lower than average for that model year
• If the vehicle is seven years old or older the tax will instead be based on either the purchase price or the minimum book value of $640 – whichever is greater

Vehicles with Past Liens

If you’re selling a vehicle with a paid off lien, you’ll need to keep the security interest lien document with your title. Both the title and the satisfied lien documents will be required to transfer vehicle ownership.

Titling Your New Used Vehicle

Transferring ownership is only half the battle in Maryland. After that you’ll need to title and register the pre-owned vehicle you just purchased. To do this you’ll need:

1. Proof of ownership, which should be the title that was transferred over to you when you bought the car
2. If you bought the vehicle out of state and the state doesn’t issue titles as proof of ownership, you’ll instead need the bill of sale and some kind of registration document
3. The application form (#VR-005) for a certificate of title
4. Your insurance information that shows you carry the minimum liability insurance required for drivers in Maryland
5. The notarized bill of sale with the purchase price and the necessary signatures
6. An odometer disclosure statement document (#VR-197)
7. A Maryland Safety Inspection Certificate (once these are issued on newly purchased preowned vehicles they are only good for 90 days)

You can get a 30-day temporary registration so you can legally drive the used vehicle you just purchased to a safety inspection site. You’ll also need to complete a temporary inspection waiver form (#VR-129) and pay a temporary registration fee, which is currently $20.

Getting New License Plates or Transferring License Plates

You can transfer the plates from your old car to the used car you just bought as long as they are in your name and the vehicle they’re being transferred to has the same registration classification. There’s a section on the certificate of title form for getting new plates or transferring your existing plates to your new vehicle.

If the registration fee is the same for both vehicles you just need to pay the transfer fee. If the new vehicle has a higher registration fee, you’ll need to pay the difference between the last registration fee you paid and the rate for your new vehicle plus the transfer fee.

Do You Have Questions About Transferring Vehicle Ownership in Maryland?

You can read more about Maryland’s convoluted title and registration process for the preowned vehicle you just purchased or are planning to purchase on the Maryland Department of Transportation website. You’ll need several different forms, to pay a couple different fees and taxes and find a notary public.

There are a lot of benefits to selling your vehicle to DirectCarBuying.com. Maybe one of the biggest benefits, and one that’s frequently overlooked by car sellers, is how much our professional team simplifies this whole process.

We have experts who deal with this process for a living. Whether you’re buying a preowned vehicle from Easterns Automotive Group, trading in a vehicle or you’re just selling your vehicle to DirectCarBuying.com for cash, you can rest assured we’ll make this process as easy and painless as possible.

Start the process now or call us at 877-927-6093 to learn more.