Buying a new or used car represents a significant investment for drivers; besides the cost of the car itself, buyers are responsible for maintenance and service. The state of Mississippi enforces laws to control how vehicles are sold, and which types of protections are available to car buyers.
Dealer Laws
According to Mississippi's State Code 63-17, dealers must have a state-issued license and be included on Mississippi's official list of operating car dealers.
Under Code 63-17, dealers must also disclose any damage to a vehicle. Before a car can be sold, the dealer must submit it for a safety inspection and repair any problems with safety equipment that might cause the vehicle to fail the inspection.
Lemon Law
Mississippi is one of the states that has a lemon law to protect buyers who purchase vehicles that are no longer covered by the original manufacturer's warranty. Officially known as the Motor Vehicle Warranty Enforcement Act, this law applies to used passenger vehicles with no existing warranty.
Buyers who discover major problems with the vehicle must first seek repair, then ask for compensation from the dealer. If the dealer refuses, the buyer may file a claim in state court in order to receive a refund if the dealer is found to have knowingly sold a vehicle with significant problems. Buyers who file frivolous lemon law suits are liable for their own court costs, as well as those of the dealer.
Taxes
Mississippi law requires that all motor vehicle sales be taxed according to state and local sales tax rates. In dealer sales, the dealer must charge sales tax at the time of purchase, just like any other merchant. For private sales, the buyer is responsible for declaring the sale price of the vehicle and submitting the appropriate tax to the state.
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