Did you know that Colorado had 256,700 new car sales in 2024? With such a high volume of vehicle purchases, it’s crucial for consumers to be aware of their rights under the Colorado Motor Vehicle Lemon Law. This law provides essential protections for consumers who find themselves stuck with a defective vehicle, commonly known as a “lemon.”
The updated Colorado Lemon Law now extends protection for vehicles up to two years or 24,000 miles, offering more time for consumers to file claims.
In this comprehensive guide, we’ll explore the specifics of the Colorado Lemon Law, including eligibility criteria, the claims process, and possible settlement options. By the end of this article, you’ll have a thorough understanding of how to navigate this law and seek the compensation you deserve.
What is the Colorado Lemon Law?
The Colorado Motor Vehicle Lemon Law, codified in Title 42, Article 10, Sections 42-10-101 to 42-10-107 of the Colorado Revised Statutes, is designed to protect consumers who purchase new vehicles that turn out to be defective.
Note: On June 6, 2024, the Colorado General Assembly bill SB24-192 mandating significant changes to Colorado’s Lemon Law was signed into law by Gov. Jared Polis. The amendments under SB24-192 became effective on August 7, 2024.
The law requires manufacturers to repair or replace vehicles that have substantial defects affecting their use, value, or safety. The primary purpose of this law is to ensure that consumers do not suffer undue financial loss due to purchasing a defective vehicle.
Eligibility Criteria
To qualify for protection under the Colorado Lemon Law, a vehicle must meet specific eligibility criteria:
Type of Vehicle: The law applies to new motor vehicles, including cars, trucks, and vans. Motorcycles, motor homes, and used vehicles are generally excluded from coverage.
Warranty Period: The vehicle must be within the manufacturer’s warranty period or within one year of delivery to the consumer, whichever comes first. The updated law now extends protection for up to two years or 24,000 miles, providing consumers with more time to file claims.
Substantial Defects: The defect must substantially impair the use, value, or safety of the vehicle. Minor issues or normal wear and tear do not qualify. Examples of substantial defects include problems with the engine, transmission, brakes, or other critical components.
Repair Attempts: The manufacturer must have been given a reasonable number of attempts to repair the defect. Specifically, the vehicle must meet one of the following conditions:
- The vehicle has been subject to at least three (previously, four) repair attempts by the manufacturer or its authorized dealer for the same defect or condition within the warranty period, and the defect still persists.
- The vehicle has been subject to at least two repair attempts by the manufacturer or its authorized dealer for safety-related defects.
- The vehicle has been out of service for a cumulative total of 24 or more business days (previously 30) during the warranty period due to the defect, and the defect still persists.
Filing a Lemon Law Claim
If you believe your vehicle qualifies as a lemon under Colorado law, follow these steps to file a claim:
- Notify the Manufacturer: Inform the manufacturer of the defect in writing. Include details of the defect, previous repair attempts, and the vehicle’s mileage. Keep copies of all correspondence for your records. This notification is crucial as it formally documents the defect and your request for repairs.
- Allow Repair Attempts: Give the manufacturer a reasonable number of attempts to repair the defect. This includes at least four repair attempts for the same defect or the vehicle being out of service for a cumulative total of 30 or more business days within the warranty period. Under the new law, the manufacturer now has a 10-business-day limit to attempt a final repair before further action can be taken.
- Document Everything: Maintain comprehensive records of all repair attempts, including repair orders, receipts, and any correspondence with the manufacturer or dealership. These records will be crucial for proving your case if you need to file a claim or take legal action.
- Request a Final Repair Attempt: If the defect persists after the reasonable number of repair attempts, notify the manufacturer again and request a final repair attempt. This step ensures that the manufacturer has one last opportunity to resolve the issue before further action is taken.
- File a Complaint: If the defect is still not resolved, you can file a formal complaint with the Colorado Office of the Attorney General or a similar consumer protection agency. You may also contact the Colorado Department of Revenue’s Division of Motor Vehicles Lemon Law Unit for assistance.
- Arbitration: Some manufacturers may require you to participate in a manufacturer-sponsored arbitration program before taking legal action. Arbitration is a less formal process where a neutral third party reviews the case and makes a decision. Arbitration can be quicker and less costly than going to court, but it may have limited appeal options.
- Legal Action: If arbitration is not successful or not required, you may file a lawsuit against the manufacturer. The court will review the case and decide whether the vehicle qualifies as a lemon. Filing a lawsuit allows you to present your case before a judge or jury and potentially receive a broader range of relief.
Possible Settlement Options
If you win your Lemon Law claim, there are typically two main settlement options available:
- Vehicle Replacement: The manufacturer may be required to replace the defective vehicle with a new, comparable vehicle. This means the new vehicle should be similar in make, model, and features to the original one. This option provides consumers with a reliable vehicle without incurring additional costs.
- Refund: The manufacturer may be required to refund the purchase price of the vehicle. This refund includes the original purchase price, taxes, registration fees, and any other associated costs. The refund may be reduced by a reasonable amount for the use of the vehicle, which is now calculated using a specific formula set by the new law. This option provides financial compensation to the consumer, allowing them to purchase a new vehicle of their choice.
Title Branding Requirement: If a vehicle is repurchased under the Lemon Law, the dealer must notify the Colorado Department of Revenue, and the vehicle’s title will be branded to inform future buyers that it was a lemon.
Additional Consumer protection
7-Day Free-Look Period: The new law requires dealers to allow buyers a 7-day period to inspect the vehicle or return it for a full refund if the vehicle does not meet their expectations. Buyers can also have an agent inspect the vehicle before purchase.
Incidental Damages: In some cases, consumers may also be entitled to compensation for incidental damages, such as rental car costs, towing fees, and other expenses incurred due to the defective vehicle. These damages are intended to cover out-of-pocket costs that the consumer incurred as a result of the lemon vehicle.
Legal Fees
Attorney’s Fees: If the consumer hires an attorney, the manufacturer is typically responsible for paying the attorney’s fees as part of the settlement. This means that the consumer does not have to pay out of pocket for legal representation. This provision encourages consumers to seek legal assistance and ensures that they can receive expert advice without financial burden.
Tips for Success
- Consult an Attorney: It’s advisable to consult with a lemon law attorney who can guide you through the process and represent your interests in arbitration or court. An experienced attorney can help you navigate the complexities of the law and increase your chances of a successful claim.
- Stay Organized: Keep all records, receipts, and correspondence related to the defect and repair attempts in a safe place. Organized documentation is crucial for proving your case and ensuring that you meet all legal requirements.
- Act Promptly: File your complaint within the required time frame, typically within 30 months from the original delivery date (previously 6 months or 1 year). Acting promptly ensures that you do not miss any deadlines and that your claim is considered valid under the law.
Conclusion
The Colorado Motor Vehicle Lemon Law provides crucial protections for consumers who purchase defective vehicles. By understanding the eligibility criteria, following the claims process, and seeking expert legal advice, you can navigate this law and seek the compensation you deserve. If you believe your vehicle qualifies as a lemon, don’t hesitate to take action.
Check if you qualify for Colorado Lemon Law benefits today!
Resolve your lemon car problem today by booking a consultation call with our experts at Lemonlawyers.org or calling us immediately at (833) 743-1990. Our team is here to help you navigate the process and ensure that you receive the compensation you deserve.