Montana Warranty Reimbursement
Montana Dealers: Your State Law Guarantees Higher Warranty Rates
Mont. Code § 61-4-213 · 23-31% typical uplift
Montana has some of the strongest warranty reimbursement laws in the country. Don't leave money on the table.
Montana Warranty Reimbursement Law
Montana has one of the strongest warranty reimbursement statutes. Requires retail-rate reimbursement with a 30-day auto-approval provision if OEM does not respond.
Mont. Code § 61-4-213
State Tier
strong
Submission Deadline
30-day submission window
OEM Response Window
30 days — auto-approved if no response
What This Means for Your Dealership
Montana's warranty reimbursement statute is a powerhouse for dealers. The law is explicit: manufacturers must reimburse at your prevailing retail rate for labor and your prevailing retail markup for parts and supplies. This includes everything from routine parts to major assemblies like engines and transmissions.
What makes Montana exceptional is the combination of the auto-approval mechanism (manufacturer has 30 days to respond or your rate is automatically approved) and the dealer's ability to choose which labor time guide to use. You're not locked into the manufacturer's time guide — you can use a third-party guide if it's what you use for retail work. This flexibility can significantly increase your effective hourly recovery.
Montana's statute is also notable for its breadth — it covers all warranty work without carving out specific repair types, making it straightforward to apply across your entire service operation.
Key Provisions
- Manufacturers must reimburse at the prevailing retail rate for labor and the prevailing retail markup for parts
- Dealer can elect to use the franchisor's labor time guide or their own third-party guide
- Covers all parts including engine, transmission, and other assemblies
- 30-day auto-approval if manufacturer fails to respond
- Rate applies to all warranty work, not just specific repair types
- Prohibition on manufacturer retaliation against dealers who submit for rate increases
What's Excluded from Calculations
The following repair types and transactions are typically excluded when calculating your retail warranty reimbursement rate:
- Goodwill repairs outside warranty coverage
- Internal and employee vehicle work
- Wholesale parts transactions
- Manufacturer recall campaigns (handled separately)
Full Statute Text
Mont. Code § 61-4-213 — Montana Warranty Reimbursement Law
Source: Montana State Legislature — This text is provided for informational purposes. Always consult the official state legislature website for the most current version.
Example: How Much Could You Recover?
A Montana dealership processing 140 warranty ROs per month at $260 average generates $437,000 in annual warranty revenue. With Montana's strong 23-31% typical uplift, that's $100,000-$135,000 in additional annual revenue. The labor time guide flexibility can add another 5-10% on top of the rate increase for dealers who use a third-party guide with higher time allowances.
Pro Tips for Montana Dealers
Choose your labor time guide strategically — if a third-party guide gives you higher time allowances than the OEM guide, Montana law lets you use it
Track the 30-day clock meticulously — auto-approval is a powerful tool, but only if you can prove the deadline passed
Montana's broad coverage means every warranty repair benefits from the rate increase — make sure you're capturing all eligible work
Montana Warranty Reimbursement FAQ
What happens if the OEM doesn't respond in 30 days?
Under Montana Code § 61-4-213, if the manufacturer fails to respond within 30 days, your submitted rate is automatically approved. This is one of the most aggressive auto-approval timelines in the country.
Can I use a third-party labor time guide in Montana?
Yes. Montana law allows dealers to elect either the franchisor's labor time guide or a third-party guide used for non-warranty work. This flexibility can significantly increase your effective hourly recovery.
Does Montana's law cover parts assemblies?
Yes. The statute explicitly includes 'engine, transmission, and other parts assemblies' — all parts and supplies are covered at your prevailing retail markup.
How is the retail rate determined in Montana?
Montana uses your 'prevailing retail rate' for labor and 'prevailing retail markup' for parts — essentially what you consistently charge non-warranty customers for the same work.
Estimate Your Annual Uplift
See what your dealership could be earning in additional warranty reimbursement.
Estimated Annual Uplift
Montana is a strong-tier state for warranty reimbursement. Learn more →
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