Refund (Repurchase) Under Mississippi Lemon Law

Under Miss. Code § 63-17-159, when the manufacturer fails to cure within the 10-working-day window after § 63-17-163 IDS exhaustion, it must give the consumer the option of a refund or a replacement — the consumer chooses. Most Mississippi Lemon Law settlements resolve via refund using the distinctive 20¢ per mile mileage offset.

What the refund includes

§ 63-17-159 refund covers:

• Full contract purchase price — negotiated sale price plus dealer add-ons.
• Collateral charges — sales tax, registration fees, title fees, document preparation fees.
• Finance charges — interest and finance fees paid.
• Insurance premiums attributable to ownership.
• Incidental damages — rental car, towing, diagnostic charges outside warranty.

The distinctive 20¢/mile mileage offset

§ 63-17-159 uses a flat 20¢ per mile offset — structurally distinctive vs. peer-state percentage-based formulas. The offset is measured by miles driven before the first repair attempt for the nonconformity.

Example: $50,000 vehicle with 10,000 miles before first repair attempt:

• MS flat 20¢/mile: $2,000 offset → $48,000 refund.
• California 120K-denominator ($50,000 × 10,000 ÷ 120,000): $4,167 offset → $45,833 refund.
• MS advantage: $2,167 more consumer-favorable.

For higher-priced vehicles the advantage grows. For lower-priced vehicles ($20,000 + 10,000 miles), the 20¢/mile offset can be slightly less consumer-favorable than percentage formulas. Net: MS’s flat 20¢/mile favors luxury / EV / premium-truck cases.

What’s excluded

• Damage caused by consumer — accidents, abuse, unauthorized modifications.
• Normal wear and tear.
• Aftermarket modifications.

Vehicle return and title transfer

On refund:

• Consumer surrenders the vehicle to a manufacturer-designated dealer.
• Title transfers to the manufacturer.
• Vehicle is recorded as a Lemon Law buyback under § 63-17-159(c) for any future resale disclosure.
• Manufacturer disposes via dealer auction or authorized resale.

Loan and lease considerations

• Financed vehicles: Manufacturer pays the lender’s payoff balance directly + delivers consumer’s equity refund (net of 20¢/mile offset).
• Leased vehicles: Manufacturer pays lessor the residual buyout + delivers consumer’s lease-equity refund.

Consumer’s option (refund vs. replacement)

§ 63-17-159 directs the manufacturer to “give the consumer the option” of refund or replacement — so the consumer holds the choice (like CA / TX / FL / NY, and unlike genuine manufacturer-option states such as OK § 901(C) and SC § 56-28-40). Most MS consumers elect refund because:

• Cash settlement caps the dispute cleanly.
• Replacement involves dealer inventory matching that may not be available.
• The consumer can put a refund toward a different brand or model.

A consumer who prefers replacement (newer model, identical trim) can elect that instead.

Timing

After settlement:

• Refund payment typically issues within 30-45 days.
• Title transfer at vehicle surrender.
• Lender payoff typically wires within 7-10 days.

Bottom line

Mississippi refunds follow the standard formula: full contract price + collateral + incidental damages - 20¢/mile offset based on miles before first repair attempt. The flat 20¢/mile is consumer-favorable for high-priced vehicles. Because § 63-17-159 gives the consumer the option, most elect the refund.

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