Colorado lemon laws are stated in Colorado Revised Statutes, Title 42, Article 10 (Motor Vehicle Warranties). Nonconformity of a motor vehicle is a defect which does not conform to the express warranties and substantially affects use and market value of the vehicle. Under Section 42-10-102, period within which the buyer should notify the nonconformity and the manufacturer should repair the vehicle is either within the warranty period or one year of receiving delivery of the motor vehicle, whichever happens earlier.
Under Section 42-10-103, if the manufacturer is not able to repair the motor vehicle, the manufacture will have to replace the vehicle with a new comparable vehicle or reimburse the purchase price of the vehicle. When reimbursing the purchase price, the manufacturer should include sales tax, fees and similar governmental charges after reducing an amount towards the use of vehicle by the buyer before discovering the nonconformity.
C.R.S. 42-10-102 reads:
“42-10-102. Repairs to conform vehicle to warranty
If a motor vehicle does not conform to a warranty and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of such warranty or during a period of one year following the date of the original delivery of the motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent, or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such warranty, notwithstanding the fact that such repairs are made after the expiration of such term or such one-year period.”
C.R.S. 42-10-103 reads in part:
“42-10-103. Failure to conform vehicle to warranty – replacement or return of vehicle
(1) If the manufacturer, its agent, or its authorized dealer is unable to conform the motor vehicle to the warranty by repairing or correcting the defect or condition which substantially impairs the use and market value of such motor vehicle after a reasonable number of attempts, the manufacturer shall, at its option, replace the motor vehicle with a comparable motor vehicle or accept return of the motor vehicle from the consumer and refund to the consumer the full purchase price, including the sales tax, license fees, and registration fees and any similar governmental charges, less a reasonable allowance for the consumer’s use of the motor vehicle. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear.A reasonable allowance for use shall be that amount directly attributable to use by the consumer and any previous consumer prior to the consumer’s first written report of the nonconformity to the manufacturer, agent, or dealer and during any subsequent period when the vehicle is not out of service by reason of repair.”