Return Vehicle to Dealer or Manufacturer (Buy Back or Lemon Law)

There are two scenarios in which you may be able to return your vehicle to the dealer or manufacturer. The first scenario, known as a “buy back”, occurs when you and the dealer from whom you bought yournew or used vehicle mutually agree to the vehicle’s repurchase during the first 60 days after you take delivery.

The second scenario is when your new passenger car, light truck or motorcycle has repeated or serious mechanical problems. Maryland’s “lemon law," CL §14-1501 through 14-1503, identifies three situations when the manufacturer must replace or repurchase the vehicle:

The same problem has been repaired 4 or more times during the vehicle’s warranty period (24 months or 18,000 miles); or,
The vehicle could not be used for 30 days or more during its warranty period (24 months or 18,000 miles) because of a problem; or,
A problem with the braking or steering system has been repaired at least once during the warranty period (24 months or 18,000 miles) but the vehicle still does not meet Maryland’s safety inspection laws.

Note that the vehicle must be new to be returned as a lemon. A description of your rights under Maryland’s lemon law can be found on the website sponsored by the Maryland Attorney General Consumer Protection Division.

If the vehicle I purchased is returned to the dealer, manufacturer, or factory branch, can I receive a refund of the excise tax that I paid when I titled the vehicle?

Yes, you may be eligible for a refund or tax credit in either scenario, “buy back” or “lemon law.” If you did not receive a replacement vehicle from the dealer, check with the dealer to be sure that a refund request has been submitted to the MVA; usually the dealer handles refund requests on the customer’s behalf. If you received a replacement vehicle from the dealer, you will receive the tax credit when the dealer requests a title for your new vehicle. If the excise tax charge for your replacement vehicle is less than the refund amount owed to you, the difference will be refunded to you.

What do the dealer or I have to do if we have mutually agreed to the “buy back” of my vehicle?

The dealer who agreed to repurchase your vehicle usually will handle all paperwork, particularly if the dealer has sold you another vehicle to replace the one you returned. If you did not receive a replacement vehicle and are requesting a refund of the excise tax, submit all documents to the MVA's Refund Unit. If you purchased another vehicle, submit all documents to the Glen Burnie branch office.

The following documents are required if the vehicle is returned under a buy back agreement:

Photocopies of both the front and back of the vehicle’s title – Make sure that you have properly assigned ownership of the vehicle to the dealer, using the Assignment of Ownership section on the back of the title. The dealer will retain the actual title in order to be able to re-sell the vehicle.
Letter from the dealer - The dealer’s letter must state the reason that the vehicle is being returned and include the vehicle owners names, the repurchase price, and the vehicle’s make, model, year, and vehicle identification number (VIN). The letter should also indicate who (dealer or owner) is to receive the excise tax refund/credit.
Letter from the vehicle owner – Your letter also must state the reason that the vehicle is being returned and include the vehicle owners names, the repurchase price, and the vehicle’s make, model, year, and vehicle identification number (VIN). The letter also should indicate who (dealer or owner) is to receive the excise tax refund/credit.

Under certain circumstances, additional information and/or forms may be required:

Lien release – If the existing title indicates that a lien was placed against it, a lien release must be submitted. This could be a properly completed and signed Maryland Security Interest Filing (SIF) or a signed letter on the lien holder’s letterhead specifically identifying the vehicle and stating that the lien has been released.

What do I have to do if my vehicle is a “lemon” vehicle?

The dealer or a representative of the manufacturer usually will handle all paperwork, particularly if you received a replacement vehicle. If you did not receive a replacement vehicle and are requesting a refund of the excise tax, submit all documents to the MVA's Refund Unit. If you purchased another vehicle, the dealership will submit all documents to the Glen Burnie branch office.

The following documents are required if the vehicle is returned under Maryland’s lemon law:

Reassigned Maryland title – Make sure that you have properly assigned ownership of the vehicle to the dealer, manufacturer, factory branch, etc., using the Assignment of Ownership section on the back of the title. The actual Maryland title certification will be retained in order to re-sell the vehicle.
Letter from the manufacturer or arbitration papers or court documentation – any of these documents may be used to verify that your vehicle was repurchased. The documents must state that the vehicle is a “lemon” and include the vehicle owners names, the repurchase price and the vehicle’s make, model, year, and vehicle identification number (VIN).

Under certain circumstances, additional information and/or forms may be required:

Lien release – If the existing title indicates that a lien was placed against it, a lien release must be submitted. This could be a properly completed and signed Maryland Security Interest Filing (SIF) or a signed letter on the lien holder’s letterhead, specifically identifying the vehicle and stating that the lien has been released.

What do I do with my vehicle registration plates?

You may be eligible to transfer the registration to another vehicle if a replacement vehicle is purchased.

If a replacement vehicle is not purchased, the registration plates, stickers and registration card must be returned for cancellation.

Fees:

There are no fees involved in the process of returning a vehicle. However, if a replacement vehicle is titled at the same time, a title fee will be collected and additional excise tax may be charged if the tax credit due is less than the excise tax charged for the replacement vehicle.

Contact Information:

MVA
Glen Burnie Branch Office
6601 Ritchie Highway, NE
Glen Burnie, MD 21062

MVA
Refund Unit
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062

For telephone questions:
MVA Customer Service Center: 1-410-768-7000
TTY/Hearing Impaired: 1-301-729-4563