Lemon Law Demand Letter - Colorado

LEMON LAW DEMAND LETTER

STATE OF COLORADO

Statutory Notice Under C.R.S. § 42-10-103(2)(c) — Written Notification to Manufacturer

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED — ARTICLE NO. [____________________]
AND OVERNIGHT DELIVERY — SIGNATURE REQUIRED

[__/__/____]

[MANUFACTURER LEGAL NAME]
ATTN: Customer Relations / Lemon Law Department / General Counsel
[MANUFACTURER STREET ADDRESS]
[CITY, STATE ZIP]

[AUTHORIZED DEALER NAME]
ATTN: General Manager / Service Director
[DEALER STREET ADDRESS]
[CITY, STATE ZIP]

Re: COLORADO LEMON LAW STATUTORY NOTICE AND DEMAND FOR REPURCHASE OR REPLACEMENT
Consumer/Owner: [________________________________]
Vehicle: [____] [________________________________] [________________________________] [________________________________]
(Year) (Make) (Model) (Trim)
VIN: [____________________]
Purchase/Lease Date: [__/__/____]
Odometer at Purchase: [________] miles
Current Odometer: [________] miles
Total Repair Attempts for Primary Defect: [____]
Total Business Days Out of Service: [____]

Dear Sir or Madam:

This law firm represents [________________________________] ("Consumer" or "Client") regarding the purchase/lease of the above-referenced vehicle, which qualifies as a "lemon" under Colorado's Motor Vehicle Warranties Act (the "Lemon Law"), C.R.S. § 42-10-101 et seq., and the federal Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq. Where the facts establish a qualifying deceptive act (for example, concealment or misrepresentation of a known defect), Consumer also asserts a parallel claim under the Colorado Consumer Protection Act ("CCPA"), C.R.S. § 6-1-101 et seq.

THIS LETTER CONSTITUTES THE REQUIRED WRITTEN NOTIFICATION BY CERTIFIED MAIL UNDER C.R.S. § 42-10-103(2)(c). You are provided ten (10) business days after receipt of this notice to cure the alleged nonconformity.

Direct all future communications to this office. Do not contact Consumer directly.

I. COLORADO LEMON LAW — STATUTORY FRAMEWORK

A. Governing Statute

Colorado's Lemon Law is codified at C.R.S. § 42-10-101 through § 42-10-110, Article 10 of Title 42, titled "Motor Vehicle Warranties." (This is distinct from the Colorado Motor Vehicle Repair Act, C.R.S. § 42-9-101 et seq., which governs repair facilities and estimates.)

IMPORTANT — 2024 amendments (SB 24-192). Senate Bill 24-192 substantially revised Article 10 effective August 7, 2024, and by its terms applies only to motor vehicles sold or leased on or after August 7, 2024. For those vehicles the coverage period is longer, the repair-attempt thresholds are lower, safety-based nonconformities are recognized, and leased vehicles are covered. Vehicles sold or leased before August 7, 2024 remain governed by the prior thresholds (warranty term or 1 year; 4 repair attempts or 30 business days). Confirm the subject vehicle's sale/lease date and apply the correct regime. This letter states the current (post-8/7/2024) standards; bracketed notes flag the prior standards.

B. Covered Vehicles — C.R.S. § 42-10-101(2)

The Colorado Lemon Law covers a "motor vehicle" — a self-propelled private passenger vehicle, including pickup trucks and vans, designed primarily for travel on the public highways and used to carry not more than ten persons, sold to a consumer in this state. This includes passenger cars, SUVs, and minivans.

Excluded from the definition: motor homes (as defined in § 42-1-102(57)); vehicles designed to travel on three or fewer wheels in contact with the ground (this excludes motorcycles); and vehicles that have been modified for commercial use. C.R.S. § 42-10-101(2).

For vehicles sold or leased on or after 8/7/2024, the statute reaches leased vehicles — the reasonable-allowance-for-use formula expressly references the "lessee cost" and the "lessor." C.R.S. § 42-10-103(4). (The pre-8/7/2024 law did not cover leases.)

The subject vehicle — a [____] [________________________________] with VIN [____________________] — is a covered vehicle purchased/leased new on [__/__/____].

C. Coverage Period — C.R.S. § 42-10-102

For a vehicle sold or leased on or after 8/7/2024, the consumer must report the nonconformity within the earlier of:

1. The first 24,000 miles of operation; or
2. Two (2) years following the date of original delivery.

[Pre-8/7/2024 vehicles: warranty term OR one (1) year from original delivery, whichever is earlier.]

The manufacturer's duty to repair continues even if repairs occur after that period expires. C.R.S. § 42-10-102. The primary defect first occurred on [__/__/____] at [________] miles — within the coverage period.

D. Rebuttable Presumption of Nonconformity — C.R.S. § 42-10-103(2)(a)

Colorado presumes a reasonable number of repair attempts has been undertaken if, within the first 24,000 miles or two years after original delivery (whichever occurs earlier), any of the following is met:

Threshold 1 — Repair Attempts:
The same nonconformity has been subject to repair three (3) or more times and continues to exist. C.R.S. § 42-10-103(2)(a)(I). [Pre-8/7/2024: four (4) or more times.]

Threshold 2 — Days Out of Service:
The vehicle has been out of service by reason of repair for a cumulative total of twenty-four (24) or more business days (not calendar days). C.R.S. § 42-10-103(2)(a)(II). [Pre-8/7/2024: thirty (30) business days.]

Threshold 3 — Safety-Based Nonconformity:
A safety-based nonconformity — one likely to cause death or serious bodily injury if the vehicle is driven, or creating a risk of fire or explosion (§ 42-10-101(2.5)) — has been subject to two (2) or more repair attempts and continues to exist. C.R.S. § 42-10-103(2)(a)(III).

Notice prerequisite — C.R.S. § 42-10-103(2)(c). The presumption does not apply unless the manufacturer first received written notification by certified mail stating that repair attempts under § 42-10-102 were made and the nonconformity remains, and the manufacturer was provided ten (10) business days to cure after receipt. That cure attempt counts as one repair attempt under Thresholds 1 and 3.

Consumer's vehicle has met ☐ Threshold 1 ([____] repair attempts), ☐ Threshold 2 ([____] business days out of service), and/or ☐ Threshold 3 ([____] safety-defect attempts).

E. Reasonable Allowance for Use (Mileage Offset) — C.R.S. § 42-10-103(4)

Colorado does not deduct a "reasonable allowance for use" based on the mileage at the time of this notice. For a vehicle sold or leased on or after 8/7/2024, the statutory allowance is:

Allowance = Total Contract Price (or Lessee Cost) × [ (Miles before the first presentation for repair) + (Miles driven during any subsequent period when the vehicle was NOT out of service for repair) ] ÷ 100,000

C.R.S. § 42-10-103(4). [Pre-8/7/2024 vehicles: a reasonable allowance "directly attributable to use" by the consumer (and any prior consumer) before the first written report of the nonconformity and during subsequent periods not out of service — no fixed formula.]

F. Colorado Consumer Protection Act — Parallel Claim (Where a Deceptive Act Is Shown)

A CCPA claim is not automatic in a lemon case: it requires a qualifying deceptive trade practice under C.R.S. § 6-1-105 — for example, knowingly concealing or misrepresenting a material defect or a vehicle's condition. Where the facts support such a practice, the CCPA, C.R.S. § 6-1-113, provides:

• The greater of actual damages (with statutory prejudgment interest) or $500 — C.R.S. § 6-1-113(2)(a)
• Up to three times (3×) actual damages — only on clear and convincing proof of bad-faith conduct (fraudulent, willful, knowing, or intentional) — C.R.S. § 6-1-113(2)(a)
• Costs and reasonable attorney fees to the prevailing party — C.R.S. § 6-1-113(2)(b)
• Three-year statute of limitations running from discovery of the deceptive act — C.R.S. § 6-1-115

II. VEHICLE INFORMATION

III. WARRANTY INFORMATION

All defects described in this letter arose within the active warranty period and remain unresolved.

IV. DESCRIPTION OF NONCONFORMITY

A. Primary Nonconformity

The vehicle suffers from one or more nonconformities that substantially impair its use, market value, or safety as required under C.R.S. § 42-10-103:

Primary Defect:

Secondary Defect(s) (if applicable):

V. COMPLETE REPAIR HISTORY

Repair Attempt No. 1

Repair Attempt No. 2

Repair Attempt No. 3

Repair Attempt No. 4

[Attach additional repair attempts as needed.]

Cumulative Repair Summary

Colorado Lemon Law Threshold Status (vehicles sold/leased on or after 8/7/2024):

• ☐ 3-Repair Threshold Met — Same nonconformity subject to [____] repair attempts; threshold is 3. C.R.S. § 42-10-103(2)(a)(I).
• ☐ 24-Business-Day Threshold Met — Vehicle out of service for [____] cumulative business days; threshold is 24. C.R.S. § 42-10-103(2)(a)(II).
• ☐ Safety-Defect Threshold Met — Safety-based nonconformity subject to [____] repair attempts; threshold is 2. C.R.S. § 42-10-103(2)(a)(III).

[Vehicles sold/leased before 8/7/2024: thresholds are 4 repair attempts or 30 cumulative business days out of service.]

VI. MANUFACTURER ARBITRATION

Under C.R.S. § 42-10-106, if the manufacturer has established or participates in an informal dispute settlement procedure that substantially complies with FTC regulations at 16 C.F.R. Part 703, the refund-or-replacement provisions of § 42-10-103(1) do not apply to a consumer who has not first resorted to that procedure. In other words, the manufacturer's qualifying program is a prerequisite to the § 42-10-103(1) remedy, not a bar to suit generally.

☐ [MANUFACTURER] has a qualifying informal dispute settlement program. Our Client will resort to that procedure as § 42-10-106 requires. The Consumer is not bound by any decision of a non-binding program and, under the Magnuson-Moss Warranty Act, retains the right to reject it and file suit; any deadline to reject is governed by the program's own rules. We reserve all rights.

☐ [MANUFACTURER] does not have a qualifying program (or its program does not substantially comply with 16 C.F.R. Part 703). The § 42-10-106 prerequisite therefore does not apply, and Consumer may proceed directly to court.

☐ Procedure Exhausted — Consumer participated in the manufacturer's program on [__/__/____]. The outcome was unsatisfactory. Consumer is now entitled to file suit.

Note: Colorado does not operate a state-run lemon law arbitration board. The only pre-suit procedure is the manufacturer's own qualifying informal dispute settlement program (e.g., BBB Auto Line), if any.

VII. DEMAND FOR RELIEF

Under C.R.S. § 42-10-103(1), once a reasonable number of repair attempts has failed, the manufacturer — at the manufacturer's option — must either replace the vehicle with a comparable one or accept its return and refund the purchase price. Colorado law vests the choice of remedy in the manufacturer, not the consumer; Consumer therefore demands that the manufacturer promptly exercise that option and states Consumer's preference below.

A. Statutory Remedy — Manufacturer's Option Under § 42-10-103(1)

☐ REPURCHASE / REFUND (Consumer's stated preference: ☐)

Under C.R.S. § 42-10-103(1), a refund consists of the full purchase price, including sales tax, license fees, registration fees, and any similar governmental charges, less the reasonable allowance for use (§ 42-10-103(4)). Refunds are paid to the consumer and lienholder as their interests appear.

☐ COMPARABLE REPLACEMENT VEHICLE (Consumer's stated preference: ☐)

Under C.R.S. § 42-10-103(1), if the manufacturer elects replacement, it must provide a comparable motor vehicle, with:

• Same or comparable make, model, trim, and options
• Comparable or lower mileage
• Payoff of Consumer's existing loan or lease on the defective vehicle

B. Additional Remedies (Where Applicable)

The Colorado Lemon Law itself provides no multiple-damages or civil-penalty remedy. Enhanced damages are available only under the parallel authorities below.

☐ CCPA Damages — C.R.S. § 6-1-113 (requires a qualifying deceptive act):

• The greater of actual damages (with prejudgment interest) or $500: $[____________________]
• Up to 3× actual damages — only on clear and convincing proof of bad-faith (fraudulent, willful, knowing, or intentional) conduct: $[____________________]
• Costs and reasonable attorney fees to the prevailing party
• Basis for the alleged deceptive act: [________________________________]

☐ Magnuson-Moss Warranty Act — 15 U.S.C. § 2301 et seq.:
Consumer asserts parallel federal warranty claims. Under Magnuson-Moss, a prevailing consumer recovers actual damages plus attorney fees (15 U.S.C. § 2310(d)(2)).

C. Attorney Fees and Costs

Under C.R.S. § 42-10-103(3), the court awards reasonable attorney fees to the prevailing side in any action to enforce Article 10. This fee provision runs both ways: a consumer who does not prevail may be ordered to pay the manufacturer's reasonable fees. Consumer's fees are also recoverable under Magnuson-Moss (15 U.S.C. § 2310(d)(2)) and the CCPA (§ 6-1-113(2)(b)). Our fees to date are $[____________________] and continue to accrue.

VIII. FINAL REPAIR OPPORTUNITY — NOTICE UNDER C.R.S. § 42-10-103(2)(c)

This letter constitutes written notice by certified mail to the manufacturer as required under C.R.S. § 42-10-103(2)(c). You are provided ten (10) business days after receipt of this notice to cure the alleged nonconformity. This cure attempt counts as one repair attempt toward the statutory presumption.

To schedule the final repair attempt, contact this office within five (5) business days of the date of this letter. If we do not hear from you, Consumer will proceed to the manufacturer's informal dispute settlement program (if § 42-10-106 applies) and/or litigation.

Important: The final repair opportunity is the manufacturer's last chance to cure before Consumer proceeds with formal legal action. If the defect is not fully cured following this final opportunity, we will file suit without further notice.

IX. DOCUMENT AND VEHICLE PRESERVATION DEMAND

You are hereby directed to immediately preserve all documents, data, and physical items related to this vehicle and Consumer's claims, including:

• All repair orders, technician notes, and warranty claim submissions
• All technical service bulletins (TSBs) and recall notices relating to the defect(s)
• All internal communications between the dealer and manufacturer regarding this vehicle
• All customer complaints, warranty claims, or litigation involving the same nonconformity on the same model/year
• All engineering analyses, root-cause investigations, or test results
• Photographs or inspection documentation
• The vehicle itself — do not sell, part out, or alter the vehicle

Failure to preserve evidence after receipt of this notice may result in a motion for sanctions and adverse inference instructions at trial.

X. DEMAND RESPONSE DEADLINE

Respond to this demand in writing within fifteen (15) days. Your response must include:

1. Your position on whether the vehicle meets the Colorado Lemon Law presumption
2. A written repurchase or replacement offer with itemized calculation
3. Scheduling of the final repair opportunity, if desired
4. Identity and contact information for your lemon law claims representative

If we do not receive a satisfactory written response within fifteen (15) days, Consumer will:
☐ Submit the matter to manufacturer's arbitration program (if required)
☐ File suit in Colorado District Court or the U.S. District Court for the District of Colorado (Denver Division)
☐ Report the matter to the Colorado Attorney General's Consumer Protection Section (1300 Broadway, Denver, CO 80203)
☐ File a complaint with the Colorado Department of Revenue — Motor Vehicle Division

XI. STATUTE OF LIMITATIONS

Under C.R.S. § 42-10-107, any action to enforce Article 10 must be commenced within thirty (30) months following the date of original delivery of the vehicle to a consumer. That period is tolled while the consumer has submitted to the manufacturer's informal dispute settlement procedure under § 42-10-106, and while the vehicle is not available for use by reason of repair. Original delivery occurred on [__/__/____], so the 30-month period runs (subject to tolling) to approximately [__/__/____]. [Vehicles delivered before 8/7/2024 are governed by the prior limitation period.] Under the CCPA, the limitation is three (3) years after discovery of the deceptive act (C.R.S. § 6-1-115). Under Magnuson-Moss, the borrowed state warranty limitation generally applies.

Calendar the earliest applicable deadline and file before it. Time is of the essence.

XII. CONCLUSION

Consumer has exercised extraordinary patience in submitting this vehicle for [____] repair attempts over [____] months. The vehicle continues to suffer from unresolved defects that substantially impair its use, value, and/or safety. Consumer is entitled to a full repurchase or a comparable replacement under Colorado law. We urge you to resolve this matter without litigation.

This letter is written without prejudice to any and all rights and remedies available to Consumer, all of which are expressly reserved.

Respectfully submitted,

[________________________________]

By: _______________________________________________
[________________________________]
Colorado Bar No. [________]
[________________________________]
[________________________________], Colorado [________]
Tel: [________________________________]
Email: [________________________________]

Attorneys for [________________________________]

ENCLOSURES:
☐ Copies of all repair orders (Repair Attempts 1 through [____])
☐ Copy of purchase/lease agreement
☐ Copy of manufacturer's warranty booklet
☐ Vehicle registration / title
☐ Photographs / video of defect symptoms
☐ Rental car and towing receipts (incidental damages)
☐ Prior correspondence with manufacturer / dealer
☐ Applicable technical service bulletins (if obtained)
☐ Authorization to represent Consumer

cc: [________________________________] (Consumer)
[________________________________] (Lienholder / Lessor, if applicable)
Colorado Attorney General — Consumer Protection Section, 1300 Broadway, Denver, CO 80203

COLORADO LEMON LAW QUICK REFERENCE

(Thresholds below reflect the current law — vehicles sold or leased on or after 8/7/2024, per SB 24-192. Prior-law figures in brackets.)

COLORADO PRACTICE NOTES FOR ATTORNEYS

☐ Confirm the Sale/Lease Date First — Two Regimes Exist: SB 24-192 (eff. 8/7/2024) applies only to vehicles sold or leased on or after 8/7/2024. For those: 3 attempts / 24 business days / 2 safety-defect attempts, within 24,000 miles or 2 years, and leases are covered. For earlier vehicles: 4 attempts / 30 business days / 1 year, no lease coverage. Applying the wrong thresholds can sink the claim.

☐ Business Days — Not Calendar Days: Colorado counts business days for the out-of-service threshold (24, or 30 pre-amendment). Tabulate repair orders to exclude weekends and Colorado state holidays. This distinction is often decisive.

☐ CCPA Requires a Deceptive Act — Do Not Overplead: A CCPA claim is not automatic in a lemon case. It requires a qualifying deceptive trade practice (§ 6-1-105) — e.g., concealment or misrepresentation of a known defect. Where it fits, the CCPA adds value: a 3-year discovery-based limitation, a greater-of-actual-or-$500 recovery, and treble damages only on clear-and-convincing proof of bad faith (§ 6-1-113(2)(a)). Plead it only when the facts support it.

☐ Use the § 42-10-103(4) Formula Correctly: For post-8/7/2024 vehicles, the reasonable allowance for use is a fixed statutory fraction: contract/lessee price × [(miles before first repair presentation) + (miles driven while not out of service)] ÷ 100,000. It is not based on the odometer at the time of notice. For earlier vehicles, use the "directly attributable to use before the first written report" standard, with no formula.

☐ No State Arbitration Board: Colorado does not maintain a state-run lemon law arbitration program. The only pre-suit procedure is the manufacturer's own qualifying informal dispute settlement program (e.g., BBB Auto Line) under § 42-10-106, and it is a prerequisite to the § 103(1) remedy only if the program qualifies. The consumer is not bound by a non-binding program's decision (Magnuson-Moss).

☐ No Lemon-Law Multiple Damages — and Fees Cut Both Ways: Article 10 has no treble-damages or civil-penalty provision; enhanced damages must come from the CCPA (bad faith, clear and convincing) or Magnuson-Moss. And § 42-10-103(3) awards fees to the prevailing side — advise the client that losing can mean paying the manufacturer's fees. This is a real settlement-pressure and risk factor to weigh.

☐ Refund Scope: The § 42-10-103(1) refund covers purchase price, sales tax, license fees, registration fees, and similar governmental charges — less the use allowance. Finance charges and incidental/consequential damages are not part of the statutory Lemon Law refund; document and pursue them under Magnuson-Moss or the CCPA where available.

☐ Venue for Litigation: Colorado District Court (in the county of purchase or Consumer's residence) for state claims. For Magnuson-Moss claims meeting the $50,000 threshold, the U.S. District Court for the District of Colorado in Denver is appropriate. Alfred A. Arraj U.S. Courthouse, 901 19th Street, Denver, CO 80294.

☐ Check for TSBs and Recalls: Before filing, run the VIN through NHTSA (nhtsa.gov/vehicle) and check for applicable TSBs. A TSB acknowledging the defect is powerful evidence that the manufacturer knew of and could not resolve the problem.

SOURCES AND REFERENCES

• C.R.S. § 42-10-101 et seq. (Colorado Lemon Law — Art. 10, "Motor Vehicle Warranties"): https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-42.pdf
• SB 24-192 (2024 Ch. 450) — amendments to Art. 10, effective 8/7/2024, applicable to vehicles sold or leased on or after 8/7/2024: https://leg.colorado.gov/bills/sb24-192
• C.R.S. § 6-1-101 et seq. (Colorado Consumer Protection Act): https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-06.pdf
• Colorado Attorney General Consumer Protection Section: https://coag.gov/resources/consumer-protection/
• Colorado Department of Revenue — Motor Vehicle Division: https://dmv.colorado.gov/
• NHTSA Vehicle Safety Complaints and TSB Search: https://www.nhtsa.gov/vehicle
• BBB Auto Line (manufacturer arbitration): https://www.bbb.org/auto-line
• 16 C.F.R. Part 703 (FTC Informal Dispute Resolution Mechanisms): https://www.ecfr.gov/current/title-16/chapter-I/subchapter-G/part-703
• U.S. District Court for the District of Colorado: https://www.cod.uscourts.gov/

This template is for informational purposes only and does not constitute legal advice. Consult a licensed Colorado attorney before use.