Colorado’s Updated Lemon Law Explained: What You Need To Know

  • By: Alex Simanovsky Esq.
Image represents the auto consumer rights under Colorado's New Lemon Law

In this article, you can discover…

  • How changes to Colorado’s Lemon Law impact you as a consumer.
  • How to document your car’s repair history towards a possible claim.
  • The types of charges and expenses refunded under Colorado’s new law.

What Changes Were Made To Colorado Lemon Law Under SB24-192?

SB24-192 introduced significant updates to Colorado’s Lemon Law to better protect consumers. The most notable change extends the statute of limitations from one year to two years from the vehicle’s delivery or 24,000 miles, providing more time to file claims. Previously, Colorado had the shortest statute of limitations for Lemon Laws nationwide.

The legislation also reduces the days out of service requirement from 30 business days to 24 business days and lowers the number of required repair attempts from four to three. Additionally, for safety-related concerns—such as issues involving brakes—the law now requires only two repair attempts to qualify for Lemon Law protections.

These updates create more robust consumer protections, particularly for safety-related issues, and make it easier for vehicle owners to seek remedies for defective vehicles in Colorado.

How Can I Tell If My Vehicle Qualifies As A Lemon Under Colorado’s Updated Law?

Under Colorado’s updated Lemon Law, a vehicle may qualify as a lemon if it meets the following criteria within the first two years of ownership or 24,000 miles, whichever comes first:

  • Days Out of Service: The vehicle has been out of service for repairs for a total of 24 business days or more.
  • Repair Attempts: The vehicle has required three or more repair attempts for the same defect or issue.

For safety-related defects, fewer repair attempts may be required under the law. To strengthen your claim, keep detailed records of all repair visits, invoices, and communications with the manufacturer or dealership.

Meeting these criteria does not guarantee a successful claim, as the process involves legal steps to resolve disputes. However, qualifying under these requirements makes you eligible to pursue one under Colorado’s Lemon Law.

What Steps Should I Take To Document Repair Attempts For A Potential Lemon Law Case?

To build a strong potential Lemon Law case, thoroughly document any repair attempts you make. As you do, follow these steps:

  • Obtain Repair Paperwork: Always request and retain copies of all repair documents from the dealership or repair shop. The dealer is legally required to provide these.
  • Verify Details: Ensure the paperwork clearly states the nature of the issue, what repairs were attempted, and the dates your vehicle was in and out of the shop.
  • Track Repair Attempts: Maintain a log summarizing each repair visit, including the defect addressed, the time your vehicle was out of service, and any recurring issues.
  • Record Communications: Save all correspondence with the dealership or manufacturer, such as emails or written notices about the defects.

Never leave the dealership without repair documentation—it is key to proving your case under Colorado’s Lemon Law. But if you do, you can go back and have them reprint any prior repair tickets or provide you with a service history.

How Does The New Formula For Refund Deductions Ensure A Fair Settlement For Consumers?

The updated Colorado Lemon Law provides a clear, standardized formula to calculate mileage deductions from lemon law refunds. Prior to it being legislated, manufacturers could deduct usage costs without specific guidelines, which was naturally ambiguous and made room for disputes.

Under the new formula, the purchase price of the vehicle is divided by 100,000 miles to determine a per-mile usage charge. It is then multiplied by the number of miles driven to calculate the deduction from the refund. This approach more closely aligns with formulas used in other states, ensuring a transparent and consistent method that benefits consumers by limiting arbitrary or excessive deductions.

How Do Refund Deductions Work In A Lemon Law Claim?

When a manufacturer agrees to or is ordered to repurchase a vehicle under Colorado’s Lemon Law, the refund is calculated based on the original sales contract, not market value or negotiation. The refund typically includes:

  • The sales price of the vehicle
  • Sales tax
  • Dealer fees and other related costs

However, a deduction is made for the consumer’s usage of the vehicle. This deduction is determined using the formula mentioned above (the vehicle’s purchase price divided by 100,000 miles multiplied by the miles driven). This ensures a fair balance between compensating the consumer and accounting for the vehicle’s use prior to the claim.

How Does Colorado’s Updated Lemon Law Compare To Lemon Laws In Other States?

Colorado’s lemon law now aligns more closely with the average standards across the country. While lemon laws vary by state in areas such as statute of limitations, mileage deduction formulas, and repair or out-of-service thresholds, the revisions to Colorado’s law simplify the claims process for consumers.

Key updates, such as the extended statute of limitations, lower repair attempt requirements, and clarified mileage deduction formula, bring Colorado’s law into balance with other states. Although nuances remain, these changes make it easier for you to navigate and prove lemon law claims.

What Should I Do If The Manufacturer Refuses To Comply With The Updated Lemon Law Requirements?

If a manufacturer refuses to comply with the lemon law requirements, your only recourse is to hire an attorney and file a lawsuit. Manufacturers are not obligated to act until a judge orders them to do so. Lemon laws, like other laws, rely on enforcement through judicial or arbitration processes rather than automatic compliance.

Most cases settle without going to court, but you must be prepared to initiate legal action to enforce your rights. An attorney experienced in lemon law can guide you through the process and increase the likelihood of a favorable outcome.

How Do Colorado’s Updated Lemon Laws Impact Consumers Who Purchase Used Or Certified Pre-Owned Vehicles In Colorado?

The updated lemon law provides limited benefits for consumers who purchase used or certified pre-owned vehicles, as the eligibility criteria remain tied to the vehicle’s original delivery date. The two-year or 24,000-mile window starts from when the vehicle was first sold as new, not from when the current owner purchased it.

This means most used vehicles, especially those older than two years or with high mileage, fall outside the Lemon law’s coverage. Additionally, there is no distinction between standard used vehicles and certified pre-owned vehicles under the law.

For used vehicles that do not qualify under the lemon law, consumers may explore other legal remedies, such as breach of warranty claims or seeking recourse under dealer-specific guarantees. However, these options depend on the specific circumstances of the purchase.

If I Suspect I Have A Lemon, Why Is It Better To Start Working With An Attorney Early On As Opposed To Later?

Starting a lemon law claim with an attorney provides you with several strategic advantages. Attorneys ensure all notice requirements are met and file claims properly with the manufacturer, bypassing lower-tier customer service departments that often lead to unsatisfactory resolutions. For instance, when an attorney files a claim, it typically goes directly to the manufacturer’s legal department, expediting the process and improving your outcome.

Moreover, lemon law cases often include fee-shifting provisions, requiring manufacturers to cover attorney fees if you prevail. This allows consumers to start their claims with no upfront costs. Early legal assistance also helps build a strong case, avoid procedural missteps, and maximize the likelihood of a favorable resolution without delays or complications.

Still Have Questions? Ready To Get Started?

For more information on Colorado’s Updated Lemon Law Explained, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (844) 885-3666 today.

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