The Lemon Law in Colorado

Colorado's lemon law covers new private passenger vehicles, including pickups and vans, that carry no more than ten people and are sold to consumers in Colorado for personal, family or household use; it does not cover motor homes, vehicles with three or fewer wheels, or vehicles modified for commercial use. Defects reported within two years or 24,000 miles of delivery, whichever is earlier, must be repaired. A reasonable number of repair attempts is presumed if, in that period, the same defect was repaired three or more times, the vehicle was out of service 24 or more business days, or a safety-related defect (likely to cause death or serious injury, or a fire or explosion risk) was repaired two or more times, and the problem remains. The consumer must first notify the manufacturer by certified mail and give it ten business days to fix the defect. If it cannot be fixed, the manufacturer must, at the manufacturer's option, replace the vehicle or refund the full purchase price, taxes and fees, minus a reasonable allowance for use. Suits must be filed within 30 months of original delivery.

1) Written notice: the presumption that the manufacturer had a reasonable number of repair attempts does not apply unless the manufacturer has received prior written notice by certified mail from or on behalf of the consumer, stating that one or more repair attempts for the same defect have been made and the defect remains. Dealers must include a notice form, with the manufacturer's name and business address, in each owner's manual, and the form must say that written notice by certified mail is required to get lemon law remedies. 2) Final repair attempt: after receiving the notice, the manufacturer has ten business days to fix the defect; that attempt counts as one repair attempt. 3) Arbitration: Colorado has no state-run lemon law arbitration program. If the manufacturer has or takes part in an informal dispute program that substantially complies with federal rules (16 C.F.R. Part 703), the refund/replacement remedy does not apply to a consumer who has not first used that program. 4) Deadline: a lawsuit must be started within thirty months after the vehicle was originally delivered to the consumer; the time is paused while the consumer is in the manufacturer's arbitration program or while the vehicle is unavailable because it is being repaired. The court must award reasonable attorney fees to the prevailing side.

The lemon law covers new vehicles. The Attorney General notes that private-party car sales are generally governed by ordinary contract rules, including vehicles bought "as is," and that there is no three-day right to cancel a car purchase. If a dealer agrees to let a buyer back out, the dealer can keep only $500 of the deposit unless it can show a greater loss.