Colorado Lemon Law

The Colorado state lemon law is the §44-10-101 to §44-10-107 of the Colorado legal code. Colorado protects motor vehicles that are self-propelled private passengers, designed primarily for travel on the public highways, and are not used to carry more than ten people. The motor vehicles include pickup trucks and vans, while excluding motor homes and vehicles that have less than three wheels.

The consumer has Colorado lemon law protection for duration of the express warranty or 12 months from the delivery of the vehicle, whichever is the earlier date. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. Nonconformity is not explicitly defined, but in the text of §42-10-103 it can be assumed that the definition of a nonconformity is “the defect or condition which substantially impairs the use and market value of such motor vehicle.” If shall be presumed that a reasonable number of attempts have been made on the vehicle, if:

• The manufacturer, its agents, or authorized dealers has had at least four attempts to fix a problem of nonconformity.
• The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more business days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.

In order for a consumer to file a lemon claim under Colorado law, he must first submit written notification to the manufacturer about the problem of nonconformity. The manufacturer shall have one more chance to cure the defect. This last chance, however, will be counted towards the reasonable number of attempts. From this point, if the consumer is not satisfied with the repair, he must proceed to the manufacturer’s informal dispute settlement program. If the manufacturer does not have one, the consumer may proceed to civil court. The court shall reward reasonable attorney fees to prevailing side in any action brought to enforce the provisions of this article (42-10-103(d)(3)). The consumer has the option of either a comparable replacement or a refund. The refund to the consumer will be the full purchase price, including sales tax, license fees, and registration fees, or any other charges (42-10-103(1)). A reasonable allowance will be subtracted off the value for the miles before the first repair. The manufacturer may argue against the lemon claiming two defenses (42-10-104):

• The nonconformity does not substantially impair the use and market value of the motor vehicle.
• The nonconformity is the result of consumer’s abuse, neglect, or unauthorized modifications of the motor vehicle.

There is no explicit information regarding the reselling of lemon vehicles back on the market. However, in §42-10-105 the law makes clear that the dealer will not be liable for any suits and it doesn’t allow the manufacturer to action against the dealers either. The dealer is obligated to properly install options and make repairs that will prevent or cure vehicle nonconformities.