1. A. A dealer determines the trade-in allowance that is deducted from the purchase price of another vehicle.
2. B. A trade-in allowance may not be divided or deducted from the purchase price of more than one vehicle.
3. C. Only one traded-in vehicle can be applied to a sales transaction for purposes of the trade-in allowance deduction.
4. D. A vehicle titled in Maryland or out-of-State may be used as a trade-in.
5. E. If the vehicle traded-in is subject to a lien, the owner or co-owners of the vehicle are entitled to the full trade-in allowance, as stated in §A of this regulation, and deducted from the total purchase price. The trade-in allowance is not limited to the amount of equity the owner has in the vehicle.

6. F. If the trade-in allowance exceeds the trade-in value indicated in a national publication of used car values adopted for use by the Administration, the dealer shall provide documentation that satisfies the Administration that the higher trade-in value is justified. Documentation includes:

   1. (1) Evidence of the amount required to release the lien on the trade-in vehicle;
   2. (2) Evidence of the vehicle customization that increases the vehicle value;
   3. (3) A current valuation from an alternative national publication; or
   4. (4) If the traded-in vehicle has already been sold, the actual resale price of the trade-in vehicle.

Authority: Transportation Article, §§12-104(b), 13-809, and 13-812, Annotated Code of Maryland

Effective date: April 6, 2009 (36:7 Md. R. 526)

Regulation .05A, C amended effective November 24, 2014 (41:23 Md. R. 1374)

Regulation .05F adopted effective November 24, 2014 (41:23 Md. R. 1374)

Regulation .06C amended as an emergency provision effective August 18, 2011 (38:19 Md. R. 1146); amended permanently effective November 14, 2011 (38:23 Md. R. 1422)