Dealing With a Lemon Vehicle in Montana
My new car keeps breaking down — here's what Montana law says and what to do next.
Statute: Mont. Code § 61-4-501 et seq. (Montana Lemon Law)
Deadline: 30 days
Penalty: Under Montana's Lemon Law, consumers may recover a refund or replacement, plus reasonable attorney fees and costs
What is dealing with a lemon vehicle?
Lemon laws exist because, before the late 1970s, buying a new car with a defect that nobody could fix meant you were just stuck with it. California passed the first modern lemon law — the Song-Beverly Consumer Warranty Act — in 1970 and tightened it with the Tanner Consumer Protection Act in 1982. Every other state followed by the early 1990s. The basic deal: if a new vehicle has a substantial defect that the manufacturer can't fix after a reasonable number of attempts, they have to replace it or refund you.
Every state has its own version, with different cutoffs for what qualifies, how many repair attempts you need, and which vehicles are covered. The federal Magnuson-Moss Warranty Act (1975) sits behind all of them as a backup — if a manufacturer doesn't honor a written warranty, you can sue under federal law and recover attorney's fees if you win, which is why most lemon-law lawyers will take your case on contingency.
What to Do If You Bought a Lemon
Step 1: Document every visit. Repair orders, receipts, written complaints, and email threads. Date, mileage, what you reported, what they did, what they didn't. The case turns on the paper trail.
Step 2: Send written notice. A formal demand letter to the manufacturer (not just the dealer) by certified mail, return receipt. Most states require this before you can file. The letter triggers a final repair opportunity, usually 10–30 days.
Step 3: Check whether arbitration is required. Many manufacturers — and some state laws — make you go through a manufacturer-sponsored arbitration program (BBB Auto Line is the biggest) before suing. It's usually free and resolves in 40–60 days.
Step 4: Sue if arbitration fails. Under both state lemon laws and the federal Magnuson-Moss Act, the manufacturer pays your attorney's fees if you win — which is why most lemon lawyers work on contingency. You bring zero money to the table.
Step 5: Pick your remedy. Replacement vehicle of comparable value, or a full refund minus a reasonable usage allowance (typically calculated as miles driven before the first defect, divided by 120,000, times the purchase price).
How Montana differs from federal law
Montana's Lemon Law provides remedies for buyers of defective new motor vehicles:
- Mont. Code Ann. § 61-4-501 et seq. (Montana Lemon Law): Covers new motor vehicles purchased or leased in Montana that have substantial defects covered by the manufacturer's warranty.
- Qualifying defects: A vehicle qualifies if the same defect has been subject to repair 4 or more times, or if the vehicle has been out of service for a cumulative total of 30 or more business days due to warranty defects.
- Time limits: The defect must be reported during the earlier of the warranty period or 2 years from the original delivery date.
- Remedies: If the vehicle qualifies, the manufacturer must either replace the vehicle or refund the full purchase price (minus a reasonable allowance for use). The consumer can choose replacement or refund.
- No used car lemon law: Montana's Lemon Law does not cover used vehicles. Used car buyers may pursue remedies under the Montana Consumer Protection Act (MCA § 30-14-103) for deceptive practices.
- Arbitration: Montana encourages informal dispute resolution before litigation. Some manufacturers offer certified arbitration programs.
Additional steps in Montana
File a complaint with the Montana Attorney General's Office of Consumer Protection at (406) 444-4500 or doj.mt.gov. Keep all repair orders and receipts. Consult a Montana consumer law attorney through the State Bar of Montana at (406) 442-7660.
What you should NOT do
Don't stop taking it in. You need a documented pattern. Skipping appointments out of frustration kills the case.
Don't get warranty repairs done at an independent mechanic. Only authorized dealer or manufacturer service counts toward your lemon-law clock.
Don't sign a quick settlement without checking the math. Manufacturers regularly offer 50–60% of what a court or arbitrator would award. Get the figure pressure-tested by a lemon-law attorney before you sign anything that includes a release.
Don't trade in or sell the car before filing. Once you no longer own it, your lemon-law rights generally die with the title transfer. File first, then dispose.
You shouldn't have to hire a lawyer to assert your rights.
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Generate your lemon law →This page is general legal information for Montana, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Montana.