Mississippi National Guard
Office of Legal Assistance
1410 Riverside Drive
Jackson, MS 39202
Phone: 601-313-6375
Legal Assistance Website: https://ms.ng.mil/resources/specialstaff/sja
Legal Assistance Email: [email protected]
Consumer Protection in Mississippi - Vehicle
Buying:
•
Researc
h before you go to the dealership about financing, what you can afford to spend on
monthly payments, what your trade-in is worth, what kind of car you want to buy, and what
your credit report looks like.
•
At the dealership, remember to stay within your price range, shop around for financing,
check the vehicle’s history, consider if you need additional products, and always read the
contract carefully before signing it.
•
When you leave the dealership, always take a copy of the contract and anything else you
signed. If the financing terms change after you take the car home, you have the right to walk
away from the deal without penalty because “yo-yo sales” are illegal in Arkansas.
When buying a used car, check the buyers guide, see if the warranty is included in the price,
ask for an independent inspection, get all promises in writing, ask about prior damage, always
test
drive the car, and look at the odometer. Also keep in mind that you have no unconditional
right
to cancel a car purchase under Federal or State laws.
Mississippi Lemon Law:
• If the manufacturer or its agent cannot conform the motor vehicle to any applicable express
warranty by r
epairing or correcting any default or condition which impairs the use, market
value, or safety of the motor vehicle to the consumer after a reasonable number of attempts,
the manufacturer shall give the consumer the option of having the manufacturer either
replace the motor vehicle with a comparable motor vehicle acceptable to the consumer, or
take title of the vehicle from the consumer and refund to the consumer the full purchase
price, including all reasonably incurred collateral charges, less a reasonable allowance for
the consumer’s use of the vehicle. The subtraction of a reasonable allowance for use shall
apply when either a replacement or refund of the motor vehicle occurs. A reasonable
allowance for use shall be that sum of money arrived at by multiplying the number of miles
the motor vehicle has been driven by the consumer by Twenty Cents (20¢) per mile.
Refunds shall be made to the consumer and lienholder of record, if any, as their interests
may appear.
• The terms, conditions or limitations of the express warranty, or the period of one (1) year
following the date of original delivery of the motor vehicle to a consumer, whichever expires
earlier, may be extended if the motor vehicle warranty problem has been reported but has
not been repaired by the manufacturer or its agent by the expiration of the applicable time
period.
• The Lemon Law presumes that you are entitled to a refund or replacement if the
manufacturer/dealer has made a certain number of unsuccessful attempts to repair
nonconformities that substantially impair the use, market value, or safety of your vehicle.
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Service Contracts, Extended Warranties, and Gap Insurance:
When buying a vehicle, a dealer may encourage you to buy a service contract, extended
warranty, or gap insurance. These products are designed to cover issues that may arise.
Service contracts and extended warranties cover mechanical breakdowns after the expiration
of the manufacturer’s warranty. Gap Insurance is designed to cover the difference between
what your insurance carrier will pay and what you actually owe on the car if you have an
accident and the car is totaled. Be careful, as these services may be helpful, but many are
very expensive for the coverage you are getting. Carefully review all terms and coverage, read
the fine print, know who backs the contract, and shop around before committing. Also, never
buy any of these from a telemarketer. You typically have the right to cancel the contract and
get a refund within the first 30 days.
Used-car buyers should be confident about the condition of the vehicle they are about to
purchase. Sellers are required to disclose up-front information about a car that has sustained
serious damage. These cars are called “salvage vehicles” in Mississippi. To be a Salvage
Vehicle, a car has either been submerged in water above dashboard level, or sustained any
damage in an amount equal to or exceeding 70 percent of its average retail value. This law
does not apply to motor vehicles more than seven years old prior to the calendar year of the
occurrence which resulted in the damage. If the car is a salvage vehicle, the title is branded as
“SALVAGE.” It can be junked or fixed, and if fixed the title is changed to “REBUILT.” Arkansas
law requires car dealers to disclose this up front. If the buyer is not notified, the purchase may
be canceled and a full refund obtained.
The Magnuson-Moss Warranty Act is a federal law that governs consumer product
warranties. Passed by Congress in 1975, it requires manufacturers and sellers of consumer
products to provide consumers with detailed information about warranty coverage, and
affects both the rights of consumers and the obligations of warrantors under written
warranties.
By providing consumers with a way of learning what warranty coverage is offered on a
product before they buy
, the Act gives consumers a way to know what to expect if something
goes wrong.
Second, the law ensures that consumers get an opportunity to compare warranty coverage
before buying. By comparing, consumers can choose a product with the best combination of
price, features, and warranty coverage to meet their individual needs.
By assuring that consumers can get warranty information, the Act also encourages sales
promotion on the basis of warranty coverage and competition among companies to meet
consumer preferences through various levels of warranty coverage.
Finally, the Act makes it easier for consumers to pursue a remedy for breach of warranty in
the courts, but it also creates a framework for companies to set up procedures for resolving
disputes inexpensively and informally, without litigation.
Magnuson-Moss Warranty Act
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