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Montana (MT)

Montana Lemon Law

Montana New Motor Vehicle Warranties — Remedies (Mont. Code Ann. §§ 61-4-501 to 61-4-533). If your new or used vehicle has a substantial defect the dealer can't fix, you may be entitled to a refund, replacement, or cash settlement. The manufacturer pays the legal fees — you pay nothing out of pocket.

What's distinctive

How Montana's lemon law is different

Montana caps coverage at the lesser of 2 years OR 18,000 miles from original delivery — among the lowest mileage caps in the country. Motorcycles are covered (unusual). Trucks over 15,000 lbs GVW, the residential portion of motor homes, off-road vehicles, and any vehicle bought for business use are excluded. Montana also REQUIRES participation in a state-certified arbitration program before suing — and the Department of Justice, not the manufacturer, certifies the program. The state has no sales tax on vehicles, which simplifies the refund calculation but means buyers should not expect a sales-tax reimbursement line item.

Used vehicles

Used vehicles are not covered by Montana's Lemon Law unless they remain within the original manufacturer's express warranty and within the 2-year / 18,000-mile statutory warranty period from original delivery. Montana has no separate used-car warranty law; used buyers rely on Magnuson-Moss, dealer warranties, and the Montana Consumer Protection Act.

Leased vehicles

Leased new vehicles purchased, titled, or leased in Montana are covered on the same terms as purchased vehicles, provided the vehicle is less than 2 years old and has 18,000 miles or fewer. Lessees receive the same replacement, refund, or repair rights as purchasers.

Mileage offset on a refund

Use allowance = total contract price × (miles driven before manufacturer's acceptance of return / 100,000). Refund equals full purchase price plus reasonable collateral charges and incidental damages, less the use allowance, paid to the consumer and any lienholder in proportion to their interests (Mont. Code § 61-4-503).

Arbitration requirement

Mandatory. Under Mont. Code §§ 61-4-507 and 61-4-511, the consumer must first submit the dispute to a state-certified informal dispute settlement program approved by the Montana Department of Justice before filing a civil action under the Lemon Law. Programs are audited annually and may be decertified.

Areas served in Montana

  • Billings
  • Missoula
  • Great Falls
  • Bozeman
  • Helena

State consumer-protection resource

Montana Department of Justice — Office of Consumer Protection

https://dojmt.gov/office-of-consumer-protection/vehicles-and-the-lemon-law/ →

Common questions

Montana lemon law, in plain English

Does Montana's lemon law cover me?

Montana's Lemon Law (Mont. Code §§ 61-4-501 to 61-4-533) covers new motor vehicles purchased, titled, or leased in Montana for personal use, that are less than 2 years old and have 18,000 miles or fewer. Motorcycles are included. The defect must substantially impair the use and market value or safety of the vehicle and must be covered by the manufacturer's express warranty. Excluded: vehicles bought for business use, trucks over 15,000 lbs GVW, off-road vehicles, the residential (non-chassis) portion of motor homes, and defects caused by accident, abuse, or unauthorized modification.

How many repair attempts before I can file in Montana?

Under Mont. Code § 61-4-504, the manufacturer is presumed to have had a reasonable number of repair attempts if, during the warranty period, either: (a) the same nonconformity has been subject to repair 4 or more times by the manufacturer or its agent or authorized dealer and continues to exist, OR (b) the vehicle is out of service because of nonconformity for a cumulative total of 30 or more business days. The warranty period for these purposes ends at 2 years or 18,000 miles, whichever is earlier.

Are used cars covered under Montana lemon law?

No. Montana's Lemon Law applies only to new motor vehicles less than 2 years old with 18,000 or fewer miles. A used vehicle may still benefit from the law only if it remains within both that 2-year / 18,000-mile statutory window AND the original manufacturer's express warranty. Montana has no separate used-car warranty statute. Used-car buyers in Montana rely on the federal Magnuson-Moss Warranty Act, any dealer or extended warranty, the implied warranty of merchantability under the Montana UCC, and the Montana Consumer Protection Act for deceptive-practices claims.

Are leased vehicles covered in Montana?

Yes. Leased new motor vehicles titled or leased in Montana are covered on the same terms as purchased vehicles — they must be less than 2 years old and have 18,000 miles or fewer. Lessees get the same 4-repair / 30-business-day presumption and the same right to a replacement or refund. The refund covers amounts actually paid under the lease plus collateral charges, minus the statutory use allowance, and is paid to the lessee and lessor in proportion to their interests.

How long do I have to file a Montana lemon law claim?

Montana's warranty period itself ends at 2 years or 18,000 miles from original delivery, whichever is earlier (Mont. Code § 61-4-501). The defect must be reported in writing during that period. If you reported a defect in writing during the warranty period, the warranty may be extended, and you generally have an additional period to bring suit after completing the required arbitration. Because the Montana Lemon Law does not contain a separate civil-action statute of limitations, courts apply the Montana UCC 4-year warranty SOL (Mont. Code § 30-2-725) for breach-of-warranty claims.

Do I have to go through arbitration before suing in Montana?

Yes. Mont. Code §§ 61-4-507 and 61-4-511 require the consumer to first submit the dispute to a state-certified informal dispute settlement program before filing a Lemon Law civil action. The Montana Department of Justice certifies and annually audits these programs and can revoke certification. The decision is not binding on the consumer. If you reject the decision, you may sue in district court.

What can I get under Montana's lemon law?

If the manufacturer cannot fix the vehicle, you are entitled to a replacement new motor vehicle of the same model and style and equal value, OR (at the manufacturer's option) a full refund of the purchase price plus reasonable collateral charges and incidental damages, minus a use allowance computed as price × (miles driven / 100,000) (Mont. Code § 61-4-503). Because Montana has no general sales tax, there is no sales-tax reimbursement line item, but registration and title fees are recoverable. A repurchased vehicle must carry a 'lemon law' disclosure on resale.

Stuck with a lemon in Montana?

Free case review. No fees unless we win — and the manufacturer pays the legal fees, not you.