The excise tax (the big one)
Maryland charges a vehicle excise tax when a vehicle is titled. As of July 1, 2025 the rate is 6.5% of the purchase price for most vehicles, according to the Maryland MVA. On a $25,000 used truck that is $1,625. It is collected at the dealership and sent to the state with your title work, so it shows up on your buyer's order, not as a surprise later. The MVA can tax on the greater of the purchase price or a book value, which is one reason a notarized bill of sale matters on private sales. At a dealership, the paperwork handles that for you.
How a trade-in changes it
In a dealer transaction, the value of your trade-in is generally subtracted before the excise tax is calculated. Trade a $10,000 vehicle toward a $25,000 purchase and you are taxed on $15,000 instead of $25,000, a savings of $650 at 6.5%. That is often the difference between selling your old car privately and trading it. Rules change, so I confirm the current treatment on every deal.
Title, tags, and registration
The MVA charges a title fee and a registration fee that depends on the vehicle's weight class and the term you choose. If you are transferring plates from a vehicle you are selling, the registration part can be smaller. I itemize these on your quote.
The dealer processing fee
Maryland dealers charge a processing fee for handling title, tag, and documentation work, and Maryland law limits how much it can be. Leonardtown Ford's current fee is printed on the dealership's pricing and on every quote I send. The important thing is that you see it before you agree to a deal, not after.
Things that should not be on your buyer's order
Reconditioning fees added after the price was agreed, "market adjustments" on a used vehicle, mandatory add-ons you did not ask for. If you see those anywhere, ask. On my quotes you will see price, tax, title and tags, the processing fee, and anything you chose to add, and nothing else.
Get the real number first
Text me the stock number of any vehicle on leonardtownford.com and I will send the itemized out-the-door price before you visit. Compare it to whatever anyone else quoted you, line by line. Text me a stock number.
Tax rates and fees are set by the State of Maryland and the dealership and can change. This guide reflects the rules as I understand them at the time of writing; your buyer's order is the final word.