On August 7, 2024, significant amendments to Colorado’s lemon law will come into effect, aiming to bolster consumer protections for those who purchase defective vehicles. Senate Bill 24-192, signed by Governor Jared Polis, introduces several key changes intended to make the lemon law more comprehensive and consumer-friendly.
Expansion of Coverage and Notification Period
The revised law extends the coverage period for vehicles experiencing defects. Previously, consumers had to notify the dealer of a defect within the earlier of the warranty period or one year after the vehicle’s original delivery. The new law expands this notification window to the earlier of the first 36,000 miles or three years after delivery. This change ensures that consumers have a more extended period to identify and report defects, increasing the likelihood of coverage under the lemon law.
Reduction in Repair Attempts and Out-of-Service Days
One of the most notable changes in the law is the reduction in the number of repair attempts and out-of-service days required before a vehicle qualifies as a lemon. The previous requirement was that the vehicle be out of service for 30 business days or undergo four unsuccessful repair attempts. The new law reduces these numbers to 21 business days and three repair attempts, respectively. This change is designed to provide quicker relief to consumers experiencing persistent vehicle issues.
Inclusion of Safety-Based Nonconformities
The updated law also broadens the definition of covered defects to include safety-based nonconformities. This means that any defect impacting the vehicle’s safety, even if it does not affect the market value, will now be covered under the lemon law. This expansion ensures that consumer safety is prioritized, offering protection against potentially dangerous vehicle defects.
Statute of Limitations and Manufacturer’s Cure Period
The statute of limitations for lemon law claims has been extended from six months after the expiration of the warranty or one year after the vehicle’s delivery to 42 months after delivery. Additionally, the law imposes a 10-day limit on the manufacturer’s opportunity to cure the defect once notified, ensuring that repairs are addressed promptly.
Dealer and Manufacturer Obligations
The new legislation also outlines specific obligations for dealers and manufacturers. Dealers must allow an agent of the purchaser to inspect the vehicle unless a seven-day free-look period is provided, during which the purchaser can return the vehicle for a full refund. Furthermore, dealers must notify purchasers of their inspection rights and report any returned vehicles to the Department of Revenue, which will then brand the vehicle’s title to inform future buyers.
Fiscal Impact and Implementation
To implement these changes, $19,605 has been appropriated for the 2024-25 fiscal year to the Department of Revenue from the Colorado DRIVES vehicle services account. This funding will support the administrative costs associated with the new requirements.
Legislative Support and Passage
The bill, sponsored by Senator Dafna Michaelson Jenet and Representatives Matt Soper and Marc Snyder, received bipartisan support. It passed through various committees, including the House Business Affairs & Labor Committee and the Senate Business, Labor & Technology Committee, with several amendments to ensure its effectiveness and feasibility.
Conclusion
The amendments to Colorado’s lemon law represent a significant step forward in consumer protection, providing broader coverage, faster resolutions, and increased safety assurances for vehicle purchasers. These changes reflect a commitment to addressing the challenges faced by consumers dealing with defective vehicles and enhancing their rights and protections under the law.
Our dedicated team gathers information from all the reliable sources to make the law accessible and understandable for everyone. We provide the latest legal news stories from across the country, delivered straight to you.
