Maryland Auto-Buying Compliance

Leer esta página en español →

From Manny: Working the dealer side of the desk taught me one thing — buyers who walk in knowing their state’s rules walk out with a cleaner deal. This is every Maryland rule my $49 Deal Audit checks against your paperwork. Every citation links to the primary source. No sponsors, no dealer money, no filter.

Last verified 2026-09-14 · every numeric claim independently fact-checked against primary sources · items marked “Not yet verified” are being sourced, never guessed.

1. Documentary Fee / Dealer Processing Charge

Maryland doc fee: $800 statutory cap

Maryland uses the term ‘dealer processing charge.’ Capped at $800 on and after July 1, 2024, per Md. Code Ann., Transportation § 15-311.1; charge must be reasonable. Contract must disclose in at least 12-point type: ‘Dealer processing charge (not required by law): $…’. Advertised prices must include the charge unless clearly and conspicuously disclosed near the price in bold at least 10-point font. Verify exact subsection numbering and document-type scope (buyer’s order vs RISC) against current codified text; adversarial review flagged citation-format and effective-date brittleness. Primary source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtr&section=15-311.1

2. Maryland Attorney General Consumer Protection Division

Phone: (410) 528-8662

Complaint URL: https://www.marylandattorneygeneral.gov/Pages/CPD/complaint.aspx

Division name: Maryland Attorney General – Consumer Protection Division

3. Maryland Consumer Protection Statute

Statute: Md. Code Ann., Com. Law § 13-301 (Title 13)

Short name: MCPA

Long name: Maryland Consumer Protection Act

Statute URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl&section=13-301

4. Sales Tax on Used Vehicle Purchase

Method: vehicle excise tax

Taxable base: total purchase price less trade in

Rate: 6.5%

Maryland imposes a titling excise tax (not general sales tax) on the ‘total purchase price,’ which includes the dealer processing charge, freight/shipping, after-manufacture items, and manufacturer rebates; trade-in allowance for a non-leased vehicle is deducted. Excluded: dealer discounts, extended warranties, mechanical repair contracts, federal excise tax, electronic registration fee, disability equipment. NOTE: primary-source research reported a rate increase to 6.5% effective July 1, 2025, but grounded review verification flagged this as incorrect and confirmed 6.0%; the conflicting rate claim is excluded per synthesis rules — verify current rate against MDOT MVA before publication. Md. Code Ann., Transportation § 13-809 et seq. https://mva.maryland.gov/vehicles/Pages/Excise-Tax.aspx

5. Maryland Lemon Law

Statute: Md. Code, Commercial Law §14-1502(d)

Repair attempts threshold: 4

Days-out-of-service threshold: 30

Notice deadline: Written notice to manufacturer by certified mail within the earlier of 24 months from original delivery or 18,000 miles; manufacturer then has 1 final repair attempt / 5 business days after receiving the vehicle

6. Title Brand Disclosure

Statute: Md. Code Ann., Transportation § 13-506

Transportation § 13-506 governs salvage certificates and title branding (including rebuilt). COMAR 11.12.01.14 (Dealers’ Advertising and Trade Practices) governs dealer disclosure of prior damage. grounded review verification confirmed Maryland law DOES require a lemon law buyback brand/disclosure; primary-source research’s contrary suggestion was flagged and excluded. https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtr&section=13-506

7. Vehicle Service Contract (VSC) Regulation

Registration required: Yes

Vehicle service contracts regulated under the Maryland Insurance article; providers must register with the Maryland Insurance Commissioner and maintain a funded reserve account or reimbursement insurance policy. Verified GREEN by grounded review. https://insurance.maryland.gov/

8. GAP Insurance Regulation

Markup cap: Not yet verified

GAP waivers/debt cancellation agreements regulated under the Maryland Insurance article; specific disclosures required and provider must be licensed or authorized by the Insurance Commissioner. No statutory markup cap corroborated by sources. Verified GREEN by grounded review. https://insurance.maryland.gov/

9. Auto Broker / Dealer License Requirement

Special license required: Not yet verified

Not covered by the research sources; unverified. Maryland dealer/broker licensing administered by MDOT MVA — confirm at https://mva.maryland.gov/ before publication.

10. Language Disclosure Requirement

Statute: No state statute equivalent to Cal. Civ. Code § 1632

Spanish disclosure required if negotiated in Spanish: No

Not covered by the research sources; no corroborated Maryland statute requiring Spanish-language contract disclosure was identified. Verify independently before publication.

11. Recording Law — Consent for F&I Office Recording

Consent type: two-party

Statute: Md. Code Ann., Cts. & Jud. Proc. § 10-402

Maryland is an all-party (two-party) consent state under the Maryland Wiretap Act. CAUTION: this item was not fully verified in current research pass and is included from well-established general legal knowledge; verify against https://mgaleg.maryland.gov/ before publication.

12. Statute of Limitations for Consumer Disputes

Maryland statute of limitations: 3 years

How your Deal Audit uses Maryland compliance data

• Doc fee checked against the Maryland reference: $800 statutory cap
• Dealer Response Letter cites the specific Maryland consumer statute where verified
• State AG contact information surfaced in the audit footer
• State Lemon Law thresholds applied to warranty questions
• State-specific rules automatically arm when your intake indicates Maryland residence