Attorney General Phil Weiser advises consumers of new rights as Colorado’s updated “lemon” law goes into effect

Aug. 6, 2024 (DENVER) – Attorney General Phil Weiser is informing consumers about their new rights under the law if they purchase a new motor vehicle that turns out to be defective. Weiser issued a public advisory, designed to help consumers understand their rights and provide guidance to dealers to understand their responsibilities.

The updated law, which goes into effect tomorrow, expands which vehicles are covered by the law, increases the duration of lemon law protections, lowers the requirements for a vehicle to be considered a lemon, extends the amount of time for consumers to file a lemon claim, and clarifies the amount consumers can receive in a refund. Additionally, the law now affords consumers protections if they are considering purchasing used “lemon buyback” vehicles.

“Colorado’s lemon law, which used to be one of the worst in the country, just got a lot better for consumers,” Weiser said. “If you’re in the market for a new vehicle, you can breathe a little easier knowing you now have more protections against buying a lemon. And if you’re buying used, you now have more information and negotiating power if you want to buy a ‘lemon buyback’ vehicle from a dealer.”

Though defective new motor vehicles are uncommon, purchasing one can be costly for consumers. While any defects should be covered under a vehicle’s warranty, the law protects consumers from being stuck with a defective vehicle.

The updated law:

Expands the vehicles included under the lemon law to include motor vehicles used by small businesses for both business and personal purposes.

Extends the duration of lemon law protections to two years after purchase or within the first 24,000 miles of the vehicle’s operation, whichever is earlier.

Lowers the requirements for a vehicle to be presumed a lemon from four to three failed repair attempts of the same defect or after the vehicle has been out of service for repair for 24 or more business days. Also, if a defect significantly impacts the safety of a vehicle, it will be presumed a lemon after two failed repair attempts of the defect.

Extends the amount of time for consumers to file a lemon law claim to 30 months following the date the vehicle was delivered to the consumer, and any time that a vehicle is under repair and unusable does not count towards this limit. Prior law limited this to six months following the expiration date of the manufacturer’s warranty or within one year of delivery to the consumer.

Clarifies the amount that may be deducted from a consumer’s refund by providing a formula that the manufacturer can use to calculate an allowance for any use of the vehicle by the consumer, thereby ensuring a fair and predictable refund process.

Gives consumers more information when buying used “lemon buyback” vehicles by
requiring that a decal be affixed to them indicating “Lemon Law Buyback,” as well as a notation in the vehicle’s title.

In general, the attorney general’s office suggests consumers do their homework when purchasing a vehicle. Research different makes and models of vehicles to ensure quality and reliability, test drive the vehicle first, have the vehicle examined by a trusted mechanic, ensure the dealer is reputable, and familiarize yourself with any warranty details.

Coloradans who believe they have purchased a defective vehicle, or who have any consumer issues with vehicle purchases, should file a complaint with the attorney general at StopFraudColorado.gov.

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