What Is the Lemon Law in Montana for Used Cars
Montana's New Motor Vehicle Warranty Act, codified as Montana Code Annotated §§ 61-4-501 through 61-4-533, establishes remedies for consumers who purchase defective new motor vehicles. The statute applies exclusively to new passenger motor vehicles used for personal, family, or household purposes. Used vehicles do not receive coverage under Montana's lemon law.
The warranty period extends two years from the date of original delivery to the consumer or during the first 18,000 miles of operation, whichever occurs earlier. Covered vehicles include motorcycles and the non-residential portions of motor homes. Exclusions apply to trucks with 15,000 pounds or more gross vehicle weight rating and components designed primarily for residential purposes.
When defects substantially impair the use, market value, or safety of a vehicle and repeated repair attempts prove unsuccessful, manufacturers must either replace the defective vehicle or provide refunds. The reasonable allowance for use equals the total contract price multiplied by a fraction with 100,000 as the denominator and the number of miles traveled as the numerator.
What Protections Do Used Car Buyers Have in Montana?
Federal statutes establish baseline protections for Montana's used vehicle purchasers despite the exclusion of used cars from state lemon law coverage.
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act governs written warranties on consumer products, including automobiles. When sellers breach express warranties, implied warranties accompanying written warranties, or service contract terms, consumers may recover damages, replacements, refunds, and attorney's fees.
FTC Used Car Rule
The Federal Trade Commission's Used Car Rule requires dealers to display a Buyer's Guide on every used vehicle before sale. The guide must disclose whether warranty coverage applies or the vehicle sells without warranty protection, specify which systems and components receive coverage, state the warranty duration, identify what percentage of repair costs the dealer will cover, and recommend obtaining independent mechanical inspections and vehicle history reports.
Montana’s Implied Warranty of Merchantability
Montana's Uniform Commercial Code establishes an implied warranty of merchantability when merchants sell goods, including used vehicles. Under this warranty, vehicles must be fit for ordinary purposes. Sellers may exclude or modify this warranty only through specific written language as prescribed by Montana Code § 30-2-316.
Understanding "As Is" Sales in Montana
Montana permits used vehicle sales "as is," but specific requirements govern how dealers may disclaim implied warranties. The Montana Department of Justice notes that an "as is" warranty means buyers have no warranty at all.
What "As Is" Means for Buyers
When purchasing a vehicle "as is," buyers accept the vehicle in its present condition with all defects, whether known or unknown. Dealers assume no post-sale repair obligations for mechanical defects. Buyers bear financial responsibility for all repair costs discovered after delivery. The implied warranty of merchantability does not apply when properly disclaimed.
Limited Dealer Disclosure Requirements
Montana statute permits implied warranty exclusion through expressions like "as is," "with all faults," or similar language that calls the buyer's attention to the exclusion and makes plain that no implied warranty exists. To exclude or modify the implied warranty of merchantability, written disclaimers must mention "merchantability" and appear conspicuously. Disclaimers of fitness warranties must likewise be written and conspicuous.
Dealers must comply with disclosure requirements regardless of "as is" status. Odometer statements remain mandatory for all vehicle transfers. Salvage or rebuilt title branding must appear on title documents. Federal odometer disclosure requirements apply to all sales.
Limited Exceptions to "As Is" Sales
Several circumstances limit "as is" protection. Fraud or intentional misrepresentation by dealers voids "as is" provisions—concealing known defects or making false statements about vehicle condition or history preserves buyer remedies. Express warranties created through specific dealer promises survive "as is" disclaimers; written or oral assurances about particular vehicle aspects remain enforceable. When buyers examine vehicles before purchase, no implied warranty applies regarding defects the examination should have revealed.
Filing a Consumer Complaint
Montana Department of Justice
Office of Consumer Protection
215 N Sanders, Third Floor
PO Box 201401
Helena, MT 59620-1401
Phone: (406) 444-4500
Official Website: Office of Consumer Protection
