Yes, you can buy a car in Maryland with only a learner’s permit. Ownership and licensure are separate under Maryland law, so nothing about holding a permit stops your name from going on a title. What actually decides how smooth the purchase is: your age, how you plan to insure the car, and whether you need to finance it.
Your Age Decides Whether You Can Sign Alone
Maryland sets the age of majority at 18, and that same age governs your capacity to enter contracts.1Justia Law. Maryland Code Commercial Law 1-103 If you are 18 or older, you can sign a purchase agreement on your own. The permit is irrelevant to the contract.
Under 18, it works differently. A minor can technically agree to buy a car, but if you back out later, the seller cannot enforce the deal against you in court.2New York Codes, Rules and Regulations. Maryland Code General Provisions 1-401 – Age of Majority That risk is why most private sellers, and effectively all dealerships, require a parent or legal guardian to co-sign. The co-signing adult becomes legally responsible for the contract, including any remaining payments or disputes.
Titling and Registering the Car in Your Name
After the purchase, the car has to be titled and registered with the Maryland Motor Vehicle Administration. The MVA uses Form VR-005, the Application for Certificate of Title, which doubles as the registration application.3Maryland Department of Transportation Motor Vehicle Administration. Vehicle Registration Forms You submit it in person at a full-service MVA branch.
Bring the completed form along with:
- Proof of ownership: the existing title showing you as the buyer, or a manufacturer’s certificate of origin for a new vehicle.
- A Maryland State Police safety inspection certificate, valid for 90 days from the date issued.
- Proof of Maryland insurance meeting the state minimums.
- A bill of sale, if the MVA cannot independently verify the vehicle’s value.
- Lien documentation, if you financed the purchase.
The MVA does not require a full driver’s license to title a vehicle in your name, but you will need valid state-issued identification.4Maryland Department of Transportation Motor Vehicle Administration. New to Maryland Titling and Registering Your Vehicle Information
Then there is the excise tax. As of July 1, 2025, Maryland charges 6.75% of the vehicle’s purchase price or fair market value, up from 6.0%.5Maryland General Assembly. Fiscal and Policy Note for House Bill 167 On a $15,000 car that comes to $1,012.50 in tax alone. Budget for it.
Insurance You Need Before You Can Register
Every registered vehicle in Maryland must carry liability insurance at all times, and you must show proof of it before the MVA will register the car.6Maryland Department of Transportation Motor Vehicle Administration. Insurance Requirements for Maryland Vehicles The state minimums are:
- $30,000 for bodily injury per person
- $60,000 for bodily injury when two or more people are involved
- $15,000 for property damage
Maryland also requires uninsured motorist coverage on every auto policy, at least equal to those liability minimums. Unless you specifically waive it in writing, the uninsured motorist coverage defaults to matching your full liability limits.7Maryland General Assembly. Maryland Insurance Code 19-509 – Uninsured Motorist Coverage Personal Injury Protection, which covers your own medical expenses and lost wages regardless of fault, is included in Maryland auto policies and can also be waived in writing.
The cheapest route for most permit holders is being added to a parent’s or guardian’s existing policy. Most insurers already require every licensed or permitted household member to be listed, so this is often happening anyway. You can buy your own standalone policy, but premiums will be significantly higher as a new driver with no claims history.
If the car is in your name but you plan to drive other people’s vehicles more often than your own, non-owner auto insurance is another option. It provides liability protection when you drive a car you don’t own, but does not cover damage to the vehicle itself. Not every insurer sells it, so you may have to shop around.
You Still Can’t Drive the Car by Yourself
Owning the car does not loosen a single rule attached to your learner’s permit. A supervising driver must be in the front passenger seat whenever you drive. That person has to be at least 21 and must have held a valid driver’s license for at least three years. No one else is allowed in the front seat while you are behind the wheel.8Maryland General Assembly. Maryland Transportation Code 16-105 – Learner’s Instructional Permit
So the car can sit in your name and in your driveway, but you cannot take it out alone, even for a quick errand, until you pass the driving test and move to a provisional license.
Financing With Little or No Credit History
Paying cash sidesteps this section entirely. Financing is where a permit holder in their late teens usually hits the wall, because most lenders want to see an established credit history and an 18- or 19-year-old rarely has one.
The workable options are narrow. A parent or another creditworthy adult can co-sign the loan, which makes them equally liable if you stop paying. Credit unions tend to be more willing to work with first-time borrowers, especially students, than large banks or dealership financing arms. Being added as an authorized user on a parent’s credit card helps build a credit file over time, though one borrowed tradeline is usually not enough on its own to qualify for an auto loan.
Federal law gives you a few protections during the process. Under the Truth in Lending Act, any lender or dealer offering financing must disclose the annual percentage rate, total finance charges, monthly payment, and total loan cost before you sign.9Consumer Financial Protection Bureau. What Is a Truth-in-Lending Disclosure for an Auto Loan? If you are denied, the lender has to tell you the specific reasons within 30 days.10Consumer Financial Protection Bureau. Comment for 1002.9 – Notifications Read those denial letters closely. They tell you exactly what to fix before applying again.