Colorado’s lemon law covers self-propelled private passenger vehicles, such as cars, vans, and pickup trucks used for personal, family or household purposes. Not included are business vehicles, those designed to carry more than ten people, motor homes, or those vehicles with fewer than three wheels.

The law declares a lemon to be a vehicle that has a defect or condition that substantially affects the market value or use of the vehicle that cannot be corrected. “Cannot be corrected” is defined as four or more unsuccessful attempts to repair the same defect or condition, or 30 or more cumulative days out of service for repair of the same problem or problems. Defects do not qualify if they are the result of neglect, abuse, or unauthorized modifications to the vehicle by the owner.

The term of the warranty and the 30 day period will be extended if the repairs cannot be made due to circumstances beyond the control of manufacturer, such as fire, flood, strike, invasion, war, or natural disaster.

The law does not apply if the manufacturer has not been notified of the problem by Certified Mail.

Colorado allows replacement or refund for vehicles identified as lemons. The law is somewhat less favorable to the vehicle owner than the laws of other states in that the option of providing a refund or replacement is left to the discretion of the manufacturer. Why the manufacturer should be permitted to make this decision is a mystery to us, but the the law stands as written. 

A refund, if offered, shall include the full purchase price, including sales tax, license fees, registration fees, and any other government charges. The manufacturer shall be permitted to deduct an allowance for use by the consumer.

If the manufacturer has an arbitration program, then participation on the part of the vehicle owner is mandatory. This is fairly common with state lemon laws; the manufacturer has established the arbitration program for the purpose of expediting a process that otherwise can drag out for months or years in the court system.  In this case, a hearing is scheduled fairly quickly, each side states his or her case, and the arbitrator rules in favor of one side of the other. The decision of the arbitration panel is not binding, however. The vehicle owner may elect to sue the manufacturer if he or she is not satisfied with the ruling of the arbitration panel. Should a lawsuit be necessary, it would be wise to hire an experienced attorney to assist with the case.

All in all, this law is a bit more manufacturer-friendly than most such statutes, as it permits the manufacturer to decide if a refund or replacement is appropriate. Most other states permit the owner of the defective vehicle to make the decision, which we think is fair.

Those seeking further information may contact:

State of Colorado
Motor Vehicle Dealer Board
Dealers Section
1881 Pierce Street, Suite 142
Lakewood, CO 80214
(303) 205-5604

 If you are going through difficulties with your automobile, truck or minivan, you may find that you need a lawyer. LegalMatch can help find an experienced attorney for you in your area. Confidentiality is guaranteed, all attorneys are licensed, and inquiries are free.

Details can be found the Colorado Lemon Law page