Regulation .05 Trade-in Allowance.
Regulation .05 Trade-in Allowance.LinkCopy Citation
A.
A dealer determines the trade-in allowance that is deducted from the purchase price of another vehicle.
B.
A trade-in allowance may not be divided or deducted from the purchase price of more than one vehicle.
C.
Only one traded-in vehicle can be applied to a sales transaction for purposes of the trade-in allowance deduction.
D.
A vehicle titled in Maryland or out-of-State may be used as a trade-in.
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.
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)
Evidence of the amount required to release the lien on the trade-in vehicle;
(2)
Evidence of the vehicle customization that increases the vehicle value;
(3)
A current valuation from an alternative national publication; or
(4)
If the traded-in vehicle has already been sold, the actual resale price of the trade-in vehicle.