In Maryland, you can sell up to five vehicles per year without a dealer's license. This limit is set by the Maryland Motor Vehicle Administration (MVA) for individuals engaging in casual sales. If you exceed this number, you are legally considered to be "in the business of selling vehicles" and must obtain a licensed dealer permit, which involves a different set of legal and tax obligations.
The five-vehicle rule is designed to distinguish between a private individual occasionally selling a personal car and someone running an unlicensed business. Each sale must be a true casual sale, meaning the vehicle was titled in your name and used for personal, family, or household purposes. Selling more than five without a license can result in significant penalties, including fines.
It's crucial to keep meticulous records of every sale, including the Vehicle Identification Number (VIN), date of sale, and the buyer's information. This documentation is your first line of defense if the MVA ever questions your activity. If you're approaching the five-car limit and plan to continue selling, your next step is to research the requirements for a Maryland dealer's license, which involves zoning approval, a surety bond, and a background check.
| Regulation Aspect | Key Detail |
|---|
| Annual Sales Limit | 5 vehicles per 12-month period |
| Governing Body | Maryland Motor Vehicle Administration (MVA) |
| Primary Condition | Vehicles must be titled in your name for personal use |
| Consequence of Exceeding Limit | Considered an unlicensed dealer; subject to fines and penalties |
| Dealer License Requirement | Mandatory for 6 or more sales per year |
| Record-Keeping Advice | Document VIN, sale date, and buyer info for each transaction |
