Leased Vehicles Under Mississippi Lemon Law

Mississippi’s Motor Vehicle Warranty Enforcement Act expressly covers leased vehicles under § 63-17-153’s definition of “consumer.” The Lemon Law’s refund/replacement remedy under § 63-17-159 applies, but the refund math is different from a purchase because the consumer doesn’t own the vehicle — the lessor does.

How lease refund math works

Consumer’s economic stake includes:

• Down payment / capitalized cost reduction (“cap-cost reduction”) at signing.
• Monthly lease payments made through the date of refund.
• Sales tax on monthly payments.
• Fees — acquisition, doc, registration.
• Security deposit (if any).

The Lemon Law refund covers these plus collateral charges, less the 20¢/mile mileage offset measured from miles driven before the first repair attempt.

The lessor’s residual buyout is paid by the manufacturer directly to the lessor; consumer is not responsible for residual.

Example calculation

Illustrative MS lease refund with the distinctive 20¢/mile offset:

• Cap-cost reduction: $3,000
• Lease payments to date (18 months × $500): $9,000
• Sales tax: $750
• Fees: $500
• Total consumer outlay: $13,250
• 20¢/mile offset (5,000 miles before first repair attempt): $1,000
• Net consumer refund: $12,250

The flat 20¢/mile offset is consumer-favorable vs. percentage-based formulas for higher-priced lease vehicles.

Replacement structure

When the consumer elects replacement under § 63-17-159 (the statute gives the consumer the option — they can take a refund instead):

• Same lease structure on the replacement vehicle.
• Residual buyout adjusts to replacement’s residual.
• Manufacturer warranty restarts at replacement delivery.
• Lease term may extend or stay the same.

Early termination and lease-vs-purchase implications

If the consumer was approaching lease end and would have walked away, refund recovery may be small. If the consumer planned to purchase at lease end (residual buyout), the Lemon Law claim affects the residual decision:

• Consumer who walks after Lemon Law refund avoids residual buyout.
• Consumer who would have purchased loses option value of residual.

Cap-cost reduction = down payment

In MS lease settlements, the cap-cost reduction at signing is often the largest single recoverable item.

Bottom line

MS Lemon Law covers leased vehicles. Refund math captures cap-cost + payments + collateral - 20¢/mile offset. Consumer is not responsible for residual buyout. The 20¢/mile flat offset favors higher-priced lease vehicles compared to peer-state percentage formulas.

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