Colorado Lemon Law Refund Calculator

How the Colorado buyback is calculated

Under the Colorado Motor Vehicle Warranties Act.

• Under C.R.S. § 42-10-103(1), when the manufacturer, its agent or its authorized dealer is unable to conform the vehicle to the warranty by repairing the defect or condition that substantially impairs its use and market value or safety after a reasonable number of attempts, the manufacturer must, at its option, replace the vehicle with a comparable one or accept its return and refund the full purchase price.
• The refund includes the sales tax, license fees, registration fees and any similar governmental charges, less a reasonable allowance for your use of the vehicle. It is made to you and the lienholder, if any, as your interests may appear.
• The allowance is fixed by the statute: the total contract price (or lessee cost) multiplied by a fraction whose denominator is 100,000 and whose numerator is the miles the vehicle traveled before your first presentation for repair, plus the miles it traveled in later periods when it was not out of service for repair (§ 42-10-103(4)).
• As an illustration, on a $40,000 contract price with 20,000 miles counted, the allowance is $40,000 times 20,000 over 100,000, or $8,000. Our calculator reads the numerator as the odometer at return less the miles you enter for time the vehicle was out of service for repair, so shop miles are left out.
• The statute does not say anything about finance charges or incidental costs such as towing or rental cars, so the calculator adds none. Article 10 contains no penalty or multiplied damages, and it does not limit other state or federal remedies (§ 42-10-105).
• The statute multiplies the “total contract price or lessee cost”, which it does not define. The calculator multiplies the vehicle price you enter plus options, not the tax and fees, and for a lease it uses what you have paid; both are approximations.

Colorado lemon law: frequently asked questions

How is the use allowance calculated in Colorado?

The statute multiplies the total contract price or lessee cost by a fraction. The denominator is 100,000. The numerator is the miles the vehicle traveled before your first presentation for repair, plus the miles it traveled during any later period when it was not out of service for repair (C.R.S. § 42-10-103(4)).

What does a Colorado refund include?

The full purchase price, including the sales tax, license fees, registration fees and any similar governmental charges, less the allowance for use. Refunds are made to the consumer and the lienholder, if any, as their interests may appear. The statute does not address finance charges or incidental costs.

Can I choose a refund over a replacement in Colorado?

No. The statute gives the choice to the manufacturer, which “at the manufacturer’s option” may replace the vehicle with a comparable motor vehicle or accept its return and refund the price (C.R.S. § 42-10-103(1)).

Does Colorado add a penalty or multiplied damages?

Article 10 contains no civil penalty or multiplied damages, so the calculator shows none. The article does not limit other state or federal remedies (C.R.S. § 42-10-105).

Who pays attorney fees in a Colorado lemon law case?

The court shall award reasonable attorney fees to the prevailing side in any action brought to enforce the article (C.R.S. § 42-10-103(3)). The prevailing side can be the manufacturer, so a consumer who loses could owe its fees, and one who wins can recover their own.