Dealing With a Lemon Vehicle in Colorado
My new car keeps breaking down — here's what Colorado law says and what to do next.
Statute: Colo. Rev. Stat. § 42-10-101 et seq. (Colorado Automotive Industry Regulation)
Deadline: 30 days
Penalty: Under Colorado's Lemon Law, consumers may recover a refund or replacement, plus reasonable attorney fees and costs
What is dealing with a lemon vehicle?
Lemon laws exist because, before the late 1970s, buying a new car with a defect that nobody could fix meant you were just stuck with it. California passed the first modern lemon law — the Song-Beverly Consumer Warranty Act — in 1970 and tightened it with the Tanner Consumer Protection Act in 1982. Every other state followed by the early 1990s. The basic deal: if a new vehicle has a substantial defect that the manufacturer can't fix after a reasonable number of attempts, they have to replace it or refund you.
Every state has its own version, with different cutoffs for what qualifies, how many repair attempts you need, and which vehicles are covered. The federal Magnuson-Moss Warranty Act (1975) sits behind all of them as a backup — if a manufacturer doesn't honor a written warranty, you can sue under federal law and recover attorney's fees if you win, which is why most lemon-law lawyers will take your case on contingency.
What to Do If You Bought a Lemon
Step 1: Document every visit. Repair orders, receipts, written complaints, and email threads. Date, mileage, what you reported, what they did, what they didn't. The case turns on the paper trail.
Step 2: Send written notice. A formal demand letter to the manufacturer (not just the dealer) by certified mail, return receipt. Most states require this before you can file. The letter triggers a final repair opportunity, usually 10–30 days.
Step 3: Check whether arbitration is required. Many manufacturers — and some state laws — make you go through a manufacturer-sponsored arbitration program (BBB Auto Line is the biggest) before suing. It's usually free and resolves in 40–60 days.
Step 4: Sue if arbitration fails. Under both state lemon laws and the federal Magnuson-Moss Act, the manufacturer pays your attorney's fees if you win — which is why most lemon lawyers work on contingency. You bring zero money to the table.
Step 5: Pick your remedy. Replacement vehicle of comparable value, or a full refund minus a reasonable usage allowance (typically calculated as miles driven before the first defect, divided by 120,000, times the purchase price).
How Colorado differs from federal law
Colorado's Motor Vehicle Warranty Enforcement Act provides strong protections for new vehicle buyers:
- The Motor Vehicle Warranty Enforcement Act (C.R.S. § 42-10-101 et seq.) covers new motor vehicles that develop substantial defects during the warranty period
- A vehicle qualifies as a lemon if within the first year of ownership: the manufacturer has failed to repair a defect after 4 repair attempts, or the vehicle has been out of service for 30 or more business days
- Consumers must notify the manufacturer in writing and allow one final repair attempt before pursuing a claim
- Remedies include a replacement vehicle or a full refund (minus a reasonable use allowance)
- Colorado requires disputes to go through the manufacturer's arbitration program (if one exists) before filing suit — but arbitration decisions are not binding on the consumer
- Attorney fees may be available to prevailing consumers
Additional steps in Colorado
Keep all repair records and work orders. Notify the manufacturer in writing via certified mail. If the manufacturer has an arbitration program, you must use it first. File complaints with the Colorado Attorney General's Consumer Protection Section at (720) 508-6000 or (800) 222-4444. Consult a Colorado lemon law attorney for claims.
What you should NOT do
Don't stop taking it in. You need a documented pattern. Skipping appointments out of frustration kills the case.
Don't get warranty repairs done at an independent mechanic. Only authorized dealer or manufacturer service counts toward your lemon-law clock.
Don't sign a quick settlement without checking the math. Manufacturers regularly offer 50–60% of what a court or arbitrator would award. Get the figure pressure-tested by a lemon-law attorney before you sign anything that includes a release.
Don't trade in or sell the car before filing. Once you no longer own it, your lemon-law rights generally die with the title transfer. File first, then dispose.
You shouldn't have to hire a lawyer to assert your rights.
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Generate your lemon law →This page is general legal information for Colorado, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Colorado.