Lemon law changes mean more protections for consumers

COLORADO, USA — A newly updated law taking effect Wednesday adds protections for consumers who purchase a vehicle that turns out to be defective.

The law 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, and extends the amount of time consumers have to file a lemon claim.

It also clarifies the amount consumers can receive in a refund and provides protections for consumers who 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,”  said Colorado Attorney General Phil Weiser. “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.”

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While defects should be covered under a vehicle’s warranty, the law protects consumers from being stuck with a defective vehicle.

Here are the changes that take effect Wednesday.

• 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 toward 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.

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.