Montana Lemon Law Refund Calculator

How the Montana buyback is calculated

Under the Montana New Motor Vehicle Warranty Act.

• Under Montana’s New Motor Vehicle Warranty Act, if after a reasonable number of attempts the manufacturer, its agent or authorized dealer is unable, during the warranty period, to conform the vehicle to an applicable express warranty by repairing or correcting a defect or condition that substantially impairs the use and market value or safety of the vehicle, the manufacturer must replace it. As an alternative to replacement, it may accept the vehicle’s return and refund you.
• The refund is the full purchase price, plus reasonable collateral charges and incidental damages, less a reasonable allowance for your use of the vehicle.
• Collateral charges are “all governmental charges”: sales tax, property tax, license and registration fees, and fees in lieu of tax. Incidental damage means incidental and consequential damage as defined in § 30-2-715.
• The allowance for use is computed by multiplying the total contract price by a fraction. The bottom of the fraction is 100,000; the top is the number of miles the vehicle traveled before the manufacturer accepts its return. On a $35,000 vehicle with 20,000 miles at return, that is $35,000 x 20,000 / 100,000 = $7,000. The estimate counts every mile up to the return. The act also describes the allowance as use before your first written notice of the problem and during any later period when the vehicle is not out of service, which could be fewer miles.
• The act does not name finance charges as a refund item and has no lease-specific refund, so the estimate adds no finance charges and a lease figure is an approximation. The refund is paid to you and to any lienholder in proportion to your interests. The part itself adds no multiplied damages, but the Montana Supreme Court has upheld the consumer-protection action in § 30-14-133 for a Lemon Law violation (Vader v. Fleetwood Enterprises, 2009 MT 6), so the high estimate shows up to three times the damages. That increase is the court’s choice, not automatic; the low and expected figures do not include it.

Montana lemon law: frequently asked questions

How much can I recover under the Montana lemon law?

If the manufacturer takes the vehicle back, the refund is the full purchase price plus reasonable collateral charges (governmental charges such as taxes and license and registration fees) and incidental damages, less the allowance for your use. The allowance is the total contract price times the miles driven before the manufacturer accepts the return, divided by 100,000. Run your numbers through the calculator for an estimate.

Do I get to choose between a replacement and a refund?

The statute says the manufacturer shall replace the vehicle with a new one of the same model and style and equal value, and that “as an alternative to replacement, the manufacturer may accept return” and refund. It gives the refund as the manufacturer’s alternative and does not say whether you can require it. In Department of Justice arbitration, a decision may provide a comparable vehicle acceptable to the consumer.

How is the deduction for my use calculated?

The total contract price is multiplied by a fraction with 100,000 as the denominator and, as the numerator, the miles the vehicle traveled before the manufacturer’s acceptance of its return. So every 1,000 miles costs you 1 percent of the contract price. The act also defines the allowance as use by you and any previous consumers before the first written notice of the problem, and during any later period when the vehicle is not out of service because of the defect. The calculator applies the formula to every mile up to the return.

Are taxes and registration fees refunded?

Yes, as collateral charges. The act defines them as all governmental charges, including sales tax, property tax, license and registration fees, and fees in lieu of tax, and the refund includes reasonable collateral charges. The act does not name finance charges, so the calculator does not add them.

Can I get double or triple damages, or my attorney fees?

The part’s own text has no multiplied damages and does not award attorney fees to a prevailing consumer in court. A violation is an unfair or deceptive trade practice with the penalties in § 30-14-224(1), a fine of up to $10,000 or up to 2 years in prison, or both, for a person who purposely or knowingly violates the sections that subsection lists. Separately, § 30-14-133 lets a consumer recover a loss or $500, with up to three times the damages and prevailing-party attorney fees in the court’s discretion, for an act declared unlawful by § 30-14-103. The Montana Supreme Court has upheld that action for a Lemon Law violation and affirmed doubled damages and fees (Vader v. Fleetwood Enterprises, 2009 MT 6). Neither the increase nor the fees are automatic, and the prevailing party may be the manufacturer. Department arbitration may award reimbursement of expenses and costs to the prevailing party.