Consumer Protections Under Colorado’s Lemon Law: A Practical Guide For Business Owners

  • By: Alex Simanovsky Esq.
Lemon Law Regulations for Business Owners in Colorado

In this article, you can discover…

  • How Colorado’s Lemon Law protects vehicles with both commercial and personal use.
  • The branding requirements for lemon buybacks under Colorado’s new laws.
  • Steps you can take to protect yourself when vehicle shopping as a small business owner.

How Does Colorado’s Lemon Law Address Vehicles Used For Both Business And Personal Purposes?

Colorado’s lemon law extends coverage to vehicles used for both personal and business purposes, as long as the vehicle is also used personally. Typically, this includes pickup trucks, SUVs, vans, and similar vehicles that serve dual purposes.

However, vehicles strictly for business use, such as tractor-trailers, semi-trucks, or delivery box trucks, are generally excluded since they lack personal use. If your vehicle has any personal use, even if it’s primarily for business, it should qualify for coverage under the law.

How Does The Inclusion Of Small Business Vehicles In The Lemon Law Affect Vehicle Manufacturers’ Responsibilities?

The inclusion of small business vehicles in the Lemon law does not alter the responsibilities of vehicle manufacturers. Similarly, it does not change the requirements you will need to fulfill when making a claim. Regardless of whether the vehicle is for small business use, both parties’ obligations remain the same under the law.

If I Have A Pickup Truck Exclusively For My Small Business, Is It Covered Under A Lemon Law Claim?

Yes, your work-use pickup truck would be covered under a lemon law claim. Colorado law does not consider your vehicle’s actual use, only whether it is classified as a personal or consumer vehicle. Pickup trucks, even when used exclusively for commercial purposes—such as by a plumbing company or electrician—are considered personal vehicles and, therefore, remain covered under lemon law protections.

What Are The New Branding Requirements For Lemon Buybacks Under Colorado Lemon Law?

Colorado’s lemon law previously did not require title branding for vehicles repurchased under the law, allowing manufacturers to resell these vehicles without disclosing their defective history. This lack of transparency was unfair to consumers, especially unsuspecting buyers of such vehicles.

Under the updated law, manufacturers must now provide written disclosure to subsequent purchasers, clearly stating that the vehicle was returned under the lemon law. This ensures full transparency and fairness in the resale market.

Such branding is likely to influence resale prices. For example, a lemon buyback vehicle would typically sell for less than a comparable used vehicle without such a history. While this adjustment may impact resale values, it aligns with the law’s purpose—ensuring Colorado consumers are fully informed about the vehicles they purchase.

Can I File A Lemon Law Claim For A Known Lemon Buyback That Continues To Have Issues?

The answer is likely no. By the time a lemon buyback is resold, the vehicle is typically no longer covered under the lemon law. This renders your claim moot, even if your vehicle continues to exhibit the same issues that initially made it a lemon.

Additionally, with the updated disclosure requirements, buyers are informed of the vehicle’s history as a buyback, making it less likely they could argue for lemon law protection.

What Steps Should I Take To Protect Myself When Purchasing A Lemon Buyback For A Professional Vehicle?

As a business owner, you should take the time to thoroughly research the vehicle’s history and repairs. You need to understand the specific issues that led to the lemon buyback and ensure those problems have been fully resolved. If you aren’t satisfied with the documentation or the vehicle’s condition, it’s best to avoid the purchase and consider other options.

How Do You Think The Updated Lemon Law In Colorado Will Impact Future Lemon Law Legislation In The State?

While there may still be opportunities to refine the law further, it’s unlikely that any changes will occur in the near future. The updated provisions seem to have set a standard that isn’t expected to be revisited soon.

Still Have Questions? Ready To Get Started?

For more information on Consumer Protections Under Colorado’s Lemon Law, 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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