Understanding Colorado Lemon Law: Does It Protect Car Leases?

The Colorado Lemon Law covers only certain types of motor vehicles, specifically private passenger vehicles, pickup trucks, and vans designed for road travel and which seat 10 or fewer people. The law does not cover motorhomes or vehicles that travel on three or fewer wheels, such as motorcycles. It also does not cover leased vehicles but does cover used vehicles.

Does Colorado Lemon Law apply to leased vehicles?

The Colorado Lemon Law covers private passenger vehicles, pickup trucks, and vans designed for road travel and which seat 10 or fewer people. The law does not cover motorhomes, vehicles designed to travel on three or fewer wheels, or leased vehicles. However, leased vehicles may still be eligible for protection under the Federal Lemon Law, which extends to all consumer vehicles.

The Colorado Lemon Law applies to consumers who purchase vehicles normally used for personal, family, or household purposes. The law also covers anyone to whom a vehicle is transferred for similar purposes during the warranty term or anyone else entitled to enforce the warranty's obligations.

The law mandates that the manufacturer bring any non-conforming vehicle into conformity with its warranty. A "nonconformity" is defined as any defect or condition that substantially impairs the vehicle's use and market value. The manufacturer must be allowed a reasonable number of attempts to fix any nonconformity reported by the consumer. A "reasonable number of attempts" is generally defined as four or more unsuccessful attempts to repair the same problem or if the vehicle is in the shop for 30 or more days without successfully repairing the problem.

If the manufacturer cannot bring the vehicle into conformity with its warranty, they must repurchase or replace it. The manufacturer must repay the vehicle's full purchase price, including sales tax, license fees, registration fees, and other governmental charges. They may, however, withhold a reasonable allowance for the consumer's use of the vehicle.

It is important to note that the Colorado Lemon Law has specific deadlines and procedures that must be followed when seeking a remedy. Consumers should consult with an experienced lemon law attorney to ensure they are taking the appropriate steps to protect their rights.

What vehicles are covered by Colorado Lemon Law?

The Colorado Lemon Law covers private passenger vehicles, pickup trucks, and vans designed for road travel and which seat 10 or fewer people. The law applies to vehicles used primarily for travel on public highways.

The Colorado Lemon Law does not cover motorhomes, motorcycles, or vehicles designed to travel on three or fewer wheels. The law also does not cover leased vehicles but does cover used vehicles.

The updated Colorado Lemon Law, which came into effect on August 7, 2024, expands the vehicles included under the law to include motor vehicles used by small businesses for both business and personal purposes.

What is a reasonable number of attempts to repair a vehicle?

The number of repair attempts deemed reasonable varies from state to state. In most states, the manufacturer gets at least three chances to fix the issue. In some states, a single repair attempt may be enough if the defect affects the safety of the vehicle.

In Colorado, a "reasonable number of attempts" is defined as four or more attempts to fix the same problem without success, or if the vehicle is in the shop for 30 or more days without the problem being resolved. However, as of August 7, 2024, this number has been lowered to three failed repair attempts or 24 or more business days out of service for repair. If a defect significantly impacts the safety of the vehicle, it is presumed to be a lemon after two failed repair attempts.

It is important to note that Colorado's lemon law does not cover leased vehicles, only private passenger vehicles, pickup trucks, and vans designed for public highways, carrying no more than 10 people, and sold to Colorado consumers.

What are the remedies for consumers under Colorado Lemon Law?

The Colorado Lemon Law offers several remedies for consumers who have purchased a defective vehicle. These remedies include:

• The right to have the manufacturer repair the vehicle to conform to its warranty.
• If repairs are unsuccessful, the manufacturer must replace the vehicle with a comparable one or repurchase it by refunding the full purchase price, including sales tax, license fees, and registration fees.
• The manufacturer may withhold a "reasonable allowance" from the refund for the consumer's use of the vehicle.
• Consumers can pursue a claim under the Magnuson-Moss Warranty Act (the federal lemon law), which provides for attorney's fees to be paid by the vehicle manufacturer if the claimant prevails.
• The law now covers motor vehicles used by small businesses for both business and personal purposes.
• The duration of lemon law protections has been extended to two years after purchase or within the first 24,000 miles of the vehicle's operation, whichever is earlier.
• The number of repair attempts or days out of service required for a vehicle to be presumed a lemon has been reduced from four to three failed repair attempts or 24 or more business days out of service.
• The time limit for consumers to file a lemon law claim has been extended to 30 months after the vehicle's delivery, excluding any time the vehicle is under repair.
• Consumers are entitled to a refund of the purchase price (minus a reasonable usage fee) or a comparable new replacement vehicle.
• Cash compensation settlements may also be negotiated as an alternative to repurchase or replacement.
• Consumers are protected regardless of whether the repairs were "free" under the vehicle's warranty.
• Most claims are resolved out of court without the need for litigation.
• Consumers are not required to pay any attorney's fees out of pocket, as these fees are typically covered by the manufacturer or included in the settlement.

What are the deadlines for filing a claim under Colorado Lemon Law?

Colorado's Lemon Law has been updated to expand the deadline for filing a claim. Consumers now have 30 months from the date of the original delivery of the motor vehicle to file a claim. This is an extension from the previous deadline, which was set at six months after the expiration of the warranty or within one year of delivery, whichever was sooner. The 30-month window also does not count any time that the vehicle is under repair and unusable.

It is important to note that Colorado's Lemon Law does not cover leased vehicles, only purchased vehicles. Additionally, the law covers private passenger vehicles, pickup trucks, and vans designed for public highways, carrying no more than 10 people.

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