Buying a new car? Colorado’s law changes Wednesday aimed at protecting your purchase

COLORADO SPRINGS, Colo. (KKTV) – Buying a new car can be one of the biggest purchases you’ll ever make and driving off the lot only to find the car is defective would be troubling, to say the least.

That’s what Lemon Laws are for.

Lemon refers to a car that proves to be defective after you buy it, having a major malfunction prompting safety concerns and/or making the car unusable.

Colorado’s Attorney General Phil Weiser worked with lawmakers to pass changes to the state’s Lemon Law in the past legislative session. Weiser says Colorado has been behind the rest of the country on this front.

“We frankly had laws that were outdated,” Weiser said. “There was a report that looked at the lemon laws of the 50 states and they graded Colorado quite poorly compared to other states. That got our attention.”

In short, Colorado’s Lemon Law allows consumers to receive a refund or replacement after purchasing a defective new vehicle. The below changes to that process take effect Aug. 7, 2024.

1. More vehicles are covered. Before, only personal vehicles could be considered lemons. Now, small business vehicles qualify too, even if the vehicle doubles for personal use.
2. You have more time. Before, you had one year from purchase to get a car to be considered a lemon. Now, you have two years or until the vehicle hits 24,000 miles, whichever comes first.
3. Lower requirements for a vehicle to be considered a lemon. Before, four failed repair attempts had to have been made in the span of 30 days in order for a car to be presumed a lemon. Now, three failed repair attempts have to be made in the span of 24 days.
4. Statute of limitations expanded. Before, you had six months to file a lemon law action against the manufacturer. Now, you have 30 months.
5. Clear formula for manufacturer-to-consumer refund deductions. When a consumer is eligible for a refund after having purchased a lemon, manufacturers are allowed to deduct a certain amount from that refund based on wear-and-tear to the vehicle while the consumer was using it. Before, the law did not include any formula for those deductions. Now, there is a formula, meant to ensure a “fair and predictable” refund process, according to the Attorney General’s public advisory.
6. Consumer protection on the used car market. Before, nothing stopped dealerships from reselling lemons without informing buyers the car was, in fact, a lemon at one point. Now, Cars that have previously been deemed a lemon have to be labeled as such with a sticker when being resold.

Colorado’s Lemon Law only applies to new vehicles.

While new cars come with warranties, Weiser’s office says warranties typically only cover repairs. Because repairs can take a car out of commission for a long time, the Lemon Law exists to ensure consumers can get a replacement and/or refund so they can move on to getting a different vehicle.

Copyright 2024 KKTV. All rights reserved.