Colorado Lemon Laws for Used Cars: What To Know
Only a handful of states in the nation specifically address used vehicle sales in their lemon laws. While there are not explicit Colorado lemon laws for used cars on the books, that doesn’t mean that you are left with no recourse at all. If your vehicle is still covered until warranty, a federal statute that protects consumers from purchasing a lemon will apply, and there are other consumer protection laws as well.
What is a lemon law?
Lemon laws exist to protect you as the buyer. Though they vary from state to state, the general premise is the same: if you purchase a vehicle that spends too much time in the shop, then you may be entitled to return the car or receive a refund.
Contrary to popular belief, the lemon law does not exist for you to go after the dealership where you purchased the car. Lemon laws solely address the responsibility of the manufacturer.
The scope of lemon law is generally much narrower than most consumers realize. In Colorado, the state’s lemon laws apply to private passenger sedans, pickups, SUVs and vans which seat 10 people or less. Other types of vehicles such as RVs and motorcycles are not covered. In addition, in Colorado a car must be NEW (under 1 year old) to be covered under state lemon laws.
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What qualifies as a lemon car?
If the car is out of service for more than 30 business days or has been in the repair shop 4 or more times for the same issue, you will then be protected under the Colorado lemon law. In addition, other situations may be covered including multiple visits for different repairs and when the manufacturer is refusing to honor the warranty to complete a warranty-covered repair.
Protecting yourself from buying a lemon
Used cars are sold “as is”, meaning that you as the buyer have little to no recourse if something were to suddenly go wrong with the car or you discover serious mechanical issues after purchase.
Therefore, it is very important that you get the car inspected by a mechanic before purchase if possible, run a check on the vehicle’s VIN number, and give the car a thorough visual inspection. These steps will protect you even if you are buying your car from a trustworthy source. Any car can have hidden issues, whether the dealer or owner purposely failed to disclose them or not.
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Colorado lemon laws for used cars
As previously mentioned, the state of Colorado does not have any laws to regulate the sale of lemons in used vehicle purchases. But while Colorado lemon laws are primarily intended to help regulate the sales of new vehicles, there are a few exceptions.
If you purchased a used car in the state of Colorado while it was still under the original manufacturer’s warranty and/or a warranty from the dealership, you may still be covered under federal lemon laws. This is due to a law known as the Magnuson-Moss Warranty Act which helps cover vehicles that do not qualify under state lemon laws.
In addition, if you purchased your vehicle as a preowned vehicle but it is less than 1 year old, you may still qualify under state lemon law.
In either case, even if your vehicle is already outside of the warranty now, you may still have a chance for legal action if the first repair for the defect occurred when the vehicle was still under warranty.
What to do if you bought a lemon car
According to state regulations, consumers must first send written notice of defect by certified mail to the manufacturer before suing for a refund or replacement vehicle. If the manufacturer has a dispute settlement procedure, the consumer must go through that process and must allow the manufacturer a chance to repair the vehicle. Usually, you can find further instructions in your owner’s manual.
If you did in fact purchase a lemon car that is still covered under lemon law, the vehicle’s manufacturer will either rescind your contract and refund a portion of your payments while taking back the car or provide you with a payoff while you keep the vehicle. In some cases, the manufacturer may provide a replacement vehicle. You may also be eligible to receive reimbursement for any repairs that were made.
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Other consumer remedies
So what if you bought a used car from a dealer or private seller that is no longer covered under the warranty and therefore not covered by the lemon law?
There are a variety of other consumer protection laws that cover various situations where a private seller or dealership broke state laws and regulations during the transaction for your vehicle.
For example, if you suspect or have evidence that the seller failed to disclose crucial info (such as a salvage title) or committed fraud (such as tampering with the odometer), you can pursue legal action for those offenses.
The best thing you can do in this situation is to contact a qualified attorney with experience in Colorado lemon laws for used cars and other avenues of consumer protection law.
In the event of you winning your claim, the other party must pay your attorney fees. Obtain a copy of your purchase contract and keep all repair invoices in order to make your best case.
You can reach the Colorado Attorney General at their Consumer Line by calling (303) 222-4444 or file a complaint with the Colorado Department of Revenue office. You can also contact the BBB for assistance.
Final thoughts
There are many misconceptions about what a “lemon law” actually covers, who is held liable in the event of the purchase of a lemon, and who can qualify for protection under state lemon law. Although there are no explicit Colorado lemon laws for used cars, you may still find success in contacting your vehicle’s manufacturer to remedy the situation if your car is under warranty.
In addition, you can utilize the services of a state consumer protection agency or attorney to pursue other actions against dealers or private sellers who have committed fraud or misrepresentation.
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