Colorado Lemon Law

Colorado's Motor Vehicle Lemon Law (C.R.S. 42-10-101 et seq.) covers new motor vehicles, including pickup trucks and vans, sold or leased in Colorado for personal, family, or household use. As amended by SB24-192 (effective Aug. 7, 2024), coverage runs for the earlier of two years from delivery or 24,000 miles. The defect must substantially impair the use or market value of the vehicle. Motorcycles, motor homes, and vehicles primarily designed for off-road use are excluded. The expanded thresholds apply only to vehicles sold or leased on or after Aug. 7, 2024.

Under the 2024 amendments to C.R.S. 42-10-103, a reasonable number of attempts is presumed if the same nonconformity has been subject to repair three or more times and continues to exist (or two times if the defect is likely to cause death or serious bodily injury), or if the vehicle has been out of service for repairs for a cumulative total of 24 or more business days during the coverage period (two years or 24,000 miles, whichever is earlier). The earlier law required 4 attempts and 30 business days, so 2024-and-later vehicles enjoy a much lower trigger.

Colorado's Lemon Law primarily addresses 'purchasers' of new motor vehicles, and the statute does not expressly extend the same statutory remedies to lessees. Lessees of new vehicles in Colorado typically pursue lemon-law-style relief through the lessor (as the title-holder) or via federal Magnuson-Moss Warranty Act claims and Colorado UCC breach-of-warranty actions. Some manufacturer arbitration programs (BBB AUTO LINE) also accept lessee claims voluntarily even where state law is silent.

SB24-192 (2024) extended the statute of limitations to 30 months following the original delivery of the vehicle. The clock is tolled while the consumer is in arbitration or while the vehicle is unavailable for use due to repair. The prior law required suit within the earlier of 6 months after warranty expiration or 1 year after delivery, so Colorado's deadline is now substantially more forgiving. Vehicles delivered before Aug. 7, 2024 are generally subject to the older, shorter limitations period.

Yes, in many cases. C.R.S. 42-10-106 requires consumers to first use any informal dispute settlement procedure that the manufacturer maintains and that substantially complies with 16 C.F.R. Part 703. Most major manufacturers participate in BBB AUTO LINE. The arbitration decision is non-binding on the consumer, so you can reject it and proceed to court. The statute of limitations is tolled during arbitration. If the manufacturer has no qualifying program, you may file directly in Colorado district court.

If the manufacturer cannot conform the vehicle to warranty after a reasonable number of attempts, C.R.S. 42-10-103 requires the manufacturer to either replace the vehicle with a comparable new one or refund the full purchase price, including sales tax, license fees, and registration fees, less a use allowance computed as (purchase price x consumer miles at refund) / 120,000. Reasonable attorneys' fees and costs are recoverable. For deceptive sales conduct, separate claims under the Colorado Consumer Protection Act (C.R.S. 6-1-113) may add treble damages up to $500,000.