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Frequently Asked Questions-Consumer

What should I know when buying a car?

First, determine what you can afford to pay for a car. Figure out what you can pay in monthly installments over approximately a 60 month period of time, the average length of a car loan. This will give you a realistic idea of the automobile price range you fit.

Next, do a little research. Go on-line, sites like Edmunds provide new and used car prices and comparisons. Study the classified advertisements in the newspaper, or visit some automobile dealerships. Get a firm idea of what type of automobile you want, the price of that vehicle, and make sure it is within your price range.

Then, determine how you will finance your automobile loan. Most automobile dealerships will eagerly offer to arrange a loan for you, but you do not have to use their services. Explore your options. Sometimes you can get much more favorable rates through your own bank or credit union.

Then, start shopping! Armed with the knowledge of what type of vehicle you want, what its average price is, what you can afford, and your finance options, you can visit several dealerships and "shop around" for the best deal. Do not be persuaded to purchase a vehicle you do not want or cannot afford. Make sure your monthly payment will not exceed what you can afford. Once you close the deal - it's final. You cannot change your mind and return the vehicle to the dealership and get your money back.

Also, be cautious of any "extras" (such as etching) the dealership may try to sell you. Be sure you understand what they are, what they cost, and if you really want or need them.

What about warranties?

New automobiles come with the manufacturer's warranty and will last for a certain period of time or for a certain amount of miles. The warranty will expire on whichever (time or miles) you reach first. You will likely be offered the opportunity to purchase an "extended warranty" or service contract which will extend the period of time or number of miles contained in the manufacturer's warranty. Be careful! Be sure you understand exactly what you are purchasing. Frequently, these "extended warranties" begin to run from the date of your purchase of the vehicle not when the manufacturer's warranty runs out.

Mississippi's Lemon Law

Miss. Code Ann. § 63-17-151, applies to new vehicles only and provides that if the same problem with your new car, while it is still under the manufacturer's warranty, has not been fixed after three or more attempts, or if your car is out of service being repaired for the same problem more than 15 working days, you may be eligible for a replacement vehicle or a refund of your purchase price, less the cost of the mileage you put on the car, from the dealer.

View the Mississippi "Lemon" Law/Motor Vehicle Warranty Enforcement Act in adobe pdf format.

Used Automobiles may or may not come with a warranty. Make sure you know if the vehicle you are purchasing comes with a warranty or if you can purchase one. Make sure you understand exactly what is covered by the warranty and get it in writing to avoid disputes in the future.

"As Is" Automobiles A used automobile may be sold "AS IS" if it is more than six model years old or has more than 75,000 miles on it if the proper “Notification of Exclusion or Modification of Implied Warranty” form is provided. The dealer must inform you that this is an "as is" sale and you must acknowledge your understanding of the same in writing. If you purchase a vehicle "as is" you have no warranty whatsoever and you have no recourse against the dealer if you later have mechanical problems.

Mechanical Inspection

If purchasing a used vehicle, be sure to have a mechanic inspect it for you before you purchase it. This way you will have an independent, professional opinion regarding the mechanical soundness of the vehicle. Also, it is recommended you get a Carfax vehicle history report to discover any hidden problems, such as whether or not the vehicle in question has ever been wrecked and repaired. You will need to know the vehicle's Vehicle Identification Number ("VIN") to obtain this report.

Spot Delivery

Beware of "spot delivery." This is occurs when a dealership encourages you to take the automobile you are considering buying home to drive around for several days while it arranges your financing. This is a sales tactic. The dealer expects that you will not want to return the vehicle to the dealership after you have shown it to family and friends - even if the financing it has arranged for you exceeds your budget. It is recommended that you do not participate in "spot delivery" at all. However, if you do, get the answers to the following questions in writing and before you drive off the lot:

  • What happens if my financing fails?
  • Do I get my down payment back?
  • Do I get my trade-in back?
  • Will the dealer charge me for mileage?
  • Who pays if I’m in an accident?
  • Above all, do not be pressured into purchasing a car on terms you cannot afford.