by Armando Martinez
Are you planning to buy a car from a private owner in Maryland? Maryland requires all vehicles to be registered with the Motor Vehicle Administration (MVA) in order to legally be driven on the road, so registering your car with the state is crucial for legally driving your new vehicle. But don't worry, registering a car bought in a private owner car sale in Maryland is a straightforward process and you have 60 days to complete the process. In this article, we'll walk you through the steps needed to register your car in Maryland.
Step 1: Obtain a Bill of Sale
The first step in registering your car is to obtain a bill of sale from the seller which you will present to the MVA as your proof of purchase. Maryland has a form Bill of Sale (VR-181 (03-18) which can be found here:https://mva.maryland.gov/Documents/VR-181.pdf. The bill of sale should include information such as:
- The make, model, year and VIN number of your vehicle
- The names and addresses of both you (the buyer) and the seller
- A statement that says "this is not an interest bearing instrument" (if applicable)
- The actual price paid for the vehicle
- Signature of both buyer and seller. The bill of sale must be notarized if the following conditions apply:
- the vehicle is less than 7 years old; and
- the purchase price is at least $500 below the book value; and
- the new owner (buyer) wants to base the excise tax (more info below) calculation (6% of the vehicle's value) on the sale price rather than the book value.
- SPECIAL NOTE: The MVA may require you to submit additional documentation to substantiate the purchase price. For example, in some cases, the total purchase price or the value of the vehicle as it is shown in a national publication of used car values (e.g. Kelly Blue Book or N.A.D.A Blackbook), will be used to establish the tax. There is an adjustment for the mileage on a vehicle, depending on whether it is higher or lower than average. For vehicles that are seven years or older, the tax is based on the purchase price or the minimum book value of $640; whichever is greater.
Step 2: Obtain the Car Title
Next, you'll need to obtain the car title from the seller. The vehicle's current title has to be properly assigned to you. If the title was issued in Maryland, it can be used as your application for titling and registering the vehicle. If the vehicle is from a state that does not issue a title as proof of ownership, a registration document and a bill of sale may be submitted as proof of ownership. Make sure that the title is signed over to you and that all fields are properly filled out, including the odometer certification in the assignment of ownership section of the title. In Maryland, you can also submit a separate odometer certification form # VR-197) which can be found here: https://mva.maryland.gov/Documents/VR-197.pdf.
If there are any liens on the car make sure they are paid off before completing the sale and that the lien(s) is released. If the existing title indicates that a lien was placed against it, you must submit a lien release. For a vehicle that was titled in Maryland, this could be a properly completed and signed Maryland Security Interest Filing or a signed letter from the lien holder specifically identifying the vehicle and stating that the lien has been released. If the vehicle is currently titled in another state, you may submit a signed letter of release from the lien holder or you may have the lien holder sign the title indicating that the lien has been released.
Step 3: Obtain Insurance
Before you can register your car in Maryland, you'll need to obtain insurance in Maryland. The state requires a minimum amount of liability coverage that includes $30,000 for bodily injury per person; $60,000 for bodily injury per accident; and $15,000 for property damage per accident.
If you are registering an out-of-state vehicle (or if this is the first time), visit our page on How To Get Auto Insurance In Maryland.
Step 4: Get Your Car Inspected
A safety inspection is required for all used cars, trucks, tractors, trailers, motorcycles, special equipment, and class "B" for hire vehicles being titled and registered in Maryland. They must be inspected by a licensed Maryland inspection station, such as an automobile dealer, service station and specialized automobile service center. A certificate of inspection, issued within 90 days of the vehicle to be titled, must accompany the application for a title. Please compare the vehicle identification number (VIN) on the inspection certificate with the one on the vehicle and the vehicle ownership documents to make certain they all agree. Altered inspection certificates will not be accepted. If you purchase a used vehicle and cannot transport it to an inspection station to have the vehicle inspected, you may request a 30-day temporary registration when you title your vehicle. To apply for the temporary license plate, you must complete a temporary inspection waiver (form #VR-129 available at https://mva.maryland.gov/Documents/VR-129.pdf). There is a fee for the temporary registration. The MVA stresses that It is important to note that only one (1) 30-day temporary registration may be issued. Therefore it is suggested that you apply only when you are ready to have the vehicle safety inspected.
In addition to the VIN and safety inspection, if you live in one of the county’s listed below, you must also obtain an emissions inspection:
- Anne Arundel County
- Baltimore County (and Baltimore City)
- Calvert County
- Carroll County
- Cecil County
- Charles County
- Frederick County
- Harford County
- Howard County
- Montgomery County
- Prince George's County
- Queen Anne's County
- Washington County
Maryland exempts diesel and electric powered vehicles and offers other exemptions for senior citizens who are at least 70 years old and drive less than 5,000 miles annually.
Step 4: Complete the Title & Registration Application
Once you have the bill of sale, the assigned and filled out the title, proof of insurance, and Inspection certificate, you'll need to complete the application for certificate of title form VR-005, which can be found online and downloaded a thttps://mva.maryland.gov/Documents/VR-005.pdf . You can also begin the title and registration process online at https://mymva.maryland.gov/tap/ind/_/#2. At the end of the online application process, you will be prompted to make an in-person appointment to finalize the request at an MDOT MVA branch office. You may also complete the title and registration process at your local MVA office or by mail addressed to MD MVA, 6601 Ritchie Highway, N.E., Glen Burnie, MD 21062.
The application will ask for information such as the car's make, model, year, and VIN (vehicle identification number). It also asks for personal information such as all owner names, and addresses. The application must be personally signed unless one person is authorized to sign for the other as evidenced by a Power of Attorney document,a copy of which you will submit to the MVA along with your application and other documents.
Step 5: Submit Your Documents and Pay the Fees
Once you have completed the title applications, you'll need to submit your documents to the MVA. You can do this in person at your local MVA office, online, by by mail, or through an MVA authorized tag and title service, a list of which can be found here:https://mymva.maryland.gov/go/web/SearchTagAndTitle . VIsit https://mymva.maryland.gov/tap/ind/_/ to schedule an appointment at your local MVA office or to begin the process online. If you choose to mail in your application, make sure to include all required documents.
You'll need to pay certain fees when titling and registering a car. These fees include:
- Title fee
- Registration fee
- Lien Fee
- ExciseSales tax
- Tag fee, if applicable.
The exact amount due will vary depending on the age and value of your vehicle, its gross vehicle weight, the type of plate requested, and the excise tax amount determined by your Bill of Sale, so make sure to check with the MVA’s website at https://mva.maryland.gov/about-mva/Pages/fees.aspx for details on how much you owe. You can pay fees by personal check or money order made payable to the MVA.
Step 6: Receive Your License Plate and Registration
After your application has been processed, your title will be mailed to you. If you also register the vehicle, your registration card, license plates and expiration stickers can be provided immediately when you apply in person at the MVA; otherwise, they will also be mailed to you. Make sure to keep these documents in a safe place--you'll need them to prove that your car is registered and legally allowed to be driven on Maryland roads.
Step 7: Have an Adventure
Now that your car is registered and legally allowed to be driven in Maryland, it's time to have an adventure! Explore the state's beautiful scenery by taking a road trip or visiting a new city. You can rest easy knowing that your car is registered and ready for the journey.
Conclusion
Congratulations on purchasing your new car! The process of registering a car bought from a private owner sale in Maryland can be overwhelming, but it doesn't have to be. By following these steps you can ensure that your vehicle is properly registered and legally allowed to be driven in the state. So don't delay and take action now if you haven't already done so. For more information, you can visit the MVA’s website at https://mva.maryland.gov/vehicles/Pages/registration/title-registration-info.aspx#titling-used and of course, we are always here to help you along the way!.
This article was written by Armando Martinez. Armando Martinez is among the nation’s experts on automotive titling, registration, DMV services and document operations. With nearly two decades of experience across a broad range of financial services functions and some of the largest names in auto, from Wells Fargo to Uber, Armando combines vision and ingenuity with a wealth of information so auto shoppers and sellers can learn from his experience.
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