Refund (Buyback) Under the Montana Lemon Law
How a Montana lemon-law refund is calculated — full purchase price plus collateral charges (no sales tax), minus a use offset on a 100,000-mile basis.
A Montana refund — the “buyback” — returns the full purchase price plus reasonable collateral charges, minus a use offset on a 100,000-mile basis, under § 61-4-501 and § 61-4-503. Note that the manufacturer elects between a refund and a replacement.
What the refund includes
- Full purchase price.
- Collateral charges (§ 61-4-501(1)) — sales tax, property tax, license and registration fees, and fees in lieu of tax. Montana has no general sales tax, so in practice this means property tax, registration, and fees in lieu.
The use offset — a 100,000-mile basis
Montana’s reasonable allowance for use (§ 61-4-501(6)) multiplies the total contract price by a fraction:
- Denominator — 100,000.
- Numerator — the number of miles driven.
The 100,000-mile denominator keeps the deduction modest — a Montana refund stays a healthy share of the purchase price even at higher mileage.
A typical refund calculation
For a $40,000 vehicle at 12,000 miles:
| Component | Amount |
|---|---|
| Purchase price | $40,000 |
| Property tax + registration + fees in lieu | + as documented |
| Use offset (12,000 ÷ 100,000 × $40,000) | − $4,800 |
| Net refund | ≈ $35,200 plus collateral charges |
Because Montana mileage accrues fast, watch the offset grow as you near the 18,000-mile cap.
The manufacturer elects
Montana is a manufacturer-election state: the manufacturer chooses refund vs. replacement (§ 61-4-503). The consumer doesn’t control which — but the refund formula is fixed by statute.
Lease refunds
For leased vehicles, the refund addresses the lease payments and collateral charges, minus the same 100,000-mile use offset, and unwinds the lease obligation.
Don’t forget the fee statutes
A refund isn’t always the whole recovery: the CPA adds actual damages, a discretionary treble (no dollar cap), and discretionary fees, and Magnuson-Moss provides § 2310(d)(2) fees — the lemon law itself has none. See attorney fees.
Bottom line
The Montana buyback returns the full purchase price plus collateral charges (no sales tax) minus a 100,000-mile use offset — at the manufacturer’s election between refund and replacement. Layer in the CPA and Magnuson-Moss for damages and fees. Get a free case review to estimate your refund.
Related
Attorney Fees in Montana Lemon Law Cases
Montana's fee structure — no fee provision in the lemon law itself, discretionary (capped) fees under the CPA, and Magnuson-Moss § 2310(d)(2) as the reliable fee basis.
Read → ArticleCash-and-Keep Settlements in Montana
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Read → ArticleMontana CPA Damages in Lemon Law Cases
How the Montana Consumer Protection Act amplifies recoveries — actual damages, a discretionary treble (up to 3x, no dollar cap), and discretionary fees (barred above a $100,000 recovery), as the lemon law's fee engine.
Read → ArticleReplacement Vehicle Under the Montana Lemon Law
When a Montana lemon-law claim results in a comparable replacement vehicle — at the manufacturer's election under § 61-4-503.
Read →Think you've got a lemon?
Compare your situation to your state's requirements — and connect with a vetted lemon-law attorney for a free case review.