Interest on motor vehicle loans in Mississippi

Interest rates on car and truck loans

Car and Truck Loans

We previously wrote here about the legal rate of interest in Mississippi. Those rates apply to most loans.

There is, however, a separate statute that applies to car and truck  loans. That is Miss. Code Ann. Section 63-19-43.

The statute sets the maximum rate of interest (or finance charge) depending upon the age of the vehicle.

Rates and age of vehicle

The statutes sets the following maximum rates:

Class 1. Any new motor vehicle manufactured in the same year or the year immediately prior to the year in which the sale is made — 18% per annum on the unpaid balance.

Class 2. Any new motor vehicle not in Class 1, any used motor vehicle manufactured not more than two years prior to the year in which the sale is made, and any new commercial vehicle or used commercial vehicle manufactured not more than one year prior to the year in which the sale is made — 21% per annum on the unpaid balance.

Class 3. Any used motor vehicle not in Class 2 and manufactured not more than four years prior to the year in which the sale is made and any used commercial vehicle not in Class 2 — 26.75% per annum on the unpaid balance.

Class 4. Any used motor vehicle not in Class 2 or Class 3 and manufactured more than four years prior to the year in which the sale is made — 28.75% per annum on the unpaid balance.

Be aware of your rights when financing a motor vehicle

Panter Law Firm, PLLC, 7736 Old Canton Road, Suite B, Madison, MS 39110.

601-607-3156.

www.craigpanterlaw.com

Craig Painter