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§ 15-311.1. Disclosure of dealer processing and freight charges with sale price of vehicle

West's Annotated Code of MarylandTransportationEffective: June 1, 2020

West's Annotated Code of Maryland
Transportation
Title 15. Vehicle Laws--Licensing of Businesses and Occupations (Refs & Annos)
Subtitle 3. Dealers (Refs & Annos)
Effective: June 1, 2020
MD Code, Transportation, § 15-311.1
§ 15-311.1. Disclosure of dealer processing and freight charges with sale price of vehicle
Currentness
Dealer processing charge
(a)(1) In this section, “dealer processing charge” includes an amount charged by a dealer for:
(i) The preparation of written documentation of the transaction;
(ii) Obtaining the title and license plates for the vehicle;
(iii) Obtaining a release of lien;
(iv) Filing title documents with the Administration;
(v) Retaining documentation and records of the transaction;
(vi) Complying with federal or State privacy laws; or
(vii) Other administrative services concerning the sale of the vehicle.
(2) “Dealer processing charge” does not include a charge to purchase or install tangible personal property on or in the vehicle, or to perform mechanical service on the vehicle.
Reasonableness and amount of dealer processing charge
(b)(1) If a dealer charges a dealer processing charge, the charge:
(i) Shall be reasonable;
(ii) May not exceed:
1. $200 for the period from July 1, 2011, through June 30, 2014;
2. $300 for the period from July 1, 2014, through June 30, 2020; and
3. $500 on and after July 1, 2020; and
(iii) Shall reflect dealer expenses generally incurred for the services identified in subsection (a)(1) of this section.
(2) A dealer shall provide a written disclosure of the services included in the dealer processing charge on request by the purchaser.
Disclosure of dealer processing charge or freight charge
(c) Any dealer processing charge or freight charge shall be disclosed to a purchaser as provided in this section.
Form of statement required on contract for sale of vehicle
(d) A contract for the sale of a vehicle shall contain a statement, in 12 point type or larger, on the contract form as follows:
“Dealer processing charge (not required by law): $....”.
“Freight charge: $ ....”.
Inclusion of dealer processing charge and freight charge in advertised price
(e) If a dealer advertises the price of a vehicle, the amount of any dealer processing charge and freight charge shall be included in the advertised price unless the dealer clearly and conspicuously discloses the amount of the dealer processing charge and freight charge in at least 10 point and bold font within reasonable proximity to the advertised price.
Statement indicating total price of vehicle
(f) The dealer shall attach its price statement to a window of the vehicle, next to any other price disclosure required by law. The dealer's price statement shall state the total price for which the dealer is offering to sell the vehicle. The total price stated shall include any dealer processing charge, which shall be disclosed above the total price in at least 10 point type as “dealer processing charge (not required by law): $..........”. The total price may exclude only the taxes and title fees payable to the State.

Credits

Added by Acts 1993, c. 631, § 2. Amended by Acts 1994, c. 3, § 1, eff. Feb. 28, 1994; Acts 2003, c. 249, § 1, eff. July 1, 2003; Acts 2011, c. 397, § 1, eff. July 1, 2011; Acts 2020, c. 538, § 6, eff. June 1, 2020.
MD Code, Transportation, § 15-311.1, MD TRANS § 15-311.1
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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